- A
Public cloud
Why wrong: A public cloud model would require the data to be stored and processed in Azure datacenters, which would violate the data sovereignty laws that mandate data remain within the country's borders.
- B
Private cloud
Why wrong: A private cloud is dedicated to a single organization and is typically hosted on-premises or in a colocation facility. While it keeps data on-premises, it does not allow the use of Azure's public cloud analytics services, which is the goal.
- C
Hybrid cloud
A hybrid cloud connects on-premises infrastructure with public cloud services, enabling the company to keep sensitive data on-premises while using Azure for analytics. This satisfies the data sovereignty requirement and the need for Azure services.
- D
Community cloud
Why wrong: A community cloud is shared by several organizations with common interests (e.g., regulatory compliance). It does not inherently provide the ability to keep data on-premises while using Azure public cloud services.
Quick Answer
The answer is the hybrid cloud deployment model. This is correct because a hybrid cloud combines on-premises infrastructure—where the company must keep customer data to comply with data sovereignty laws—with Azure’s public cloud services, such as Azure Synapse Analytics or Azure Machine Learning, to run analytics workloads without moving the data. On the Microsoft Azure Fundamentals AZ-900 exam, this scenario tests your understanding of when to choose hybrid over private or public cloud: private cloud would require building a fully isolated environment, while public cloud alone would violate data residency rules. A common trap is assuming “private cloud” is the answer when data must stay on-premises, but hybrid is the precise fit because it allows the analytics to happen in Azure while the data remains local. Memory tip: think of “hybrid” as “home plus hub”—your data stays home (on-premises), but you use Azure’s hub for heavy lifting.
AZ-900 Describe cloud concepts Practice Question
This AZ-900 practice question tests your understanding of describe cloud concepts. The scenario asks you to isolate a root cause — eliminate options that address a different problem before choosing. After answering, compare your reasoning against the explanation and wrong-answer breakdown below. Once you have made your selection, read the full explanation to reinforce the concept and understand why each distractor is designed to mislead on exam day.
A company runs a legacy application on-premises that cannot be migrated to the cloud due to strict data sovereignty laws requiring customer data to remain within the country's physical borders. The company wants to use Azure's advanced analytics services to gain insights from the data. They plan to keep the data on-premises but run the analytics workloads in Azure. Which cloud deployment model should they use?
Answer choices
Why each option matters
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
Hybrid cloud
The hybrid cloud model is correct because it combines on-premises infrastructure (for data sovereignty compliance) with Azure's public cloud services (for advanced analytics). This allows the company to keep customer data within the country's physical borders while leveraging Azure's analytics workloads, such as Azure Synapse Analytics or Azure Machine Learning, without migrating the data to the cloud.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Public cloud
Why it's wrong here
A public cloud model would require the data to be stored and processed in Azure datacenters, which would violate the data sovereignty laws that mandate data remain within the country's borders.
- ✗
Private cloud
Why it's wrong here
A private cloud is dedicated to a single organization and is typically hosted on-premises or in a colocation facility. While it keeps data on-premises, it does not allow the use of Azure's public cloud analytics services, which is the goal.
- ✓
Hybrid cloud
Why this is correct
A hybrid cloud connects on-premises infrastructure with public cloud services, enabling the company to keep sensitive data on-premises while using Azure for analytics. This satisfies the data sovereignty requirement and the need for Azure services.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
Community cloud
Why it's wrong here
A community cloud is shared by several organizations with common interests (e.g., regulatory compliance). It does not inherently provide the ability to keep data on-premises while using Azure public cloud services.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often confuse hybrid cloud with public cloud, assuming that any use of Azure services automatically means a public cloud deployment, but hybrid cloud specifically addresses scenarios where data must remain on-premises due to compliance or regulatory requirements.
Detailed technical explanation
How to think about this question
In a hybrid cloud deployment, Azure services like Azure Arc can extend Azure management to on-premises resources, enabling analytics workloads to run in Azure while data remains on-premises via secure connections like Azure ExpressRoute or VPN gateways. This setup uses data residency controls and Azure Policy to enforce compliance, ensuring that customer data never leaves the specified geographic boundary. A real-world scenario involves financial institutions using Azure Synapse Link to query on-premises SQL Server databases without moving the data, maintaining sovereignty while gaining cloud-scale analytics.
KKey Concepts to Remember
- Read the scenario before looking for a memorised answer.
- Find the constraint that changes the correct option.
- Eliminate answers that are true in general but not in this case.
TExam Day Tips
- Watch for words such as best, first, most likely and least administrative effort.
- Review why wrong options are wrong, not only why the correct option is correct.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
How this comes up in practice
A cloud solutions architect for a retail company is evaluating services for a new workload. The correct answer here reflects best practice for the specific scenario described — not a general cloud recommendation. Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option. Cloud exam questions reward reading the constraint carefully: the same technology can be right or wrong depending on the use case.
What to study next
Got this wrong? Here's your next step.
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
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FAQ
Questions learners often ask
What does this AZ-900 question test?
Describe cloud concepts — This question tests Describe cloud concepts — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Hybrid cloud — The hybrid cloud model is correct because it combines on-premises infrastructure (for data sovereignty compliance) with Azure's public cloud services (for advanced analytics). This allows the company to keep customer data within the country's physical borders while leveraging Azure's analytics workloads, such as Azure Synapse Analytics or Azure Machine Learning, without migrating the data to the cloud.
What should I do if I get this AZ-900 question wrong?
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
What is the key concept behind this question?
Read the scenario before looking for a memorised answer.
About these practice questions
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Last reviewed: Jun 11, 2026
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