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Describe cloud conceptseasyMultiple ChoiceObjective-mapped

AZ-900 Describe cloud concepts Practice Question

A financial services company processes sensitive customer data and must strictly control the physical location of the servers. They want to use cloud computing but with dedicated hardware that is not shared with other customers. Which cloud deployment model should they choose?

⚠ Common exam trap

Watch out — candidates often confuse 'private cloud' with 'on-premises only,' but a private cloud can also be hosted by a third-party provider in a dedicated, single-tenant environment, as long as the hardware is not shared with other customers.

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

Private cloud

A private cloud is the correct deployment model because it provides dedicated, single-tenant infrastructure that is not shared with other customers. This ensures that the financial services company can maintain strict physical control over server locations and meet compliance requirements for sensitive customer data, as the hardware is exclusively used by one organization.

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 is a multi-tenant environment where compute and storage resources are pooled and shared across many customers, and the provider owns and operates all physical infrastructure. The end customer has limited ability to choose or know the exact server location, and the isolation between tenants relies on virtualized boundaries. For a financial services firm handling sensitive customer data, this lack of control over physical location and tenancy fails to provide the dedicated isolation that regulatory compliance often requires.

    When this WOULD be correct

    A startup with limited budget and no strict data residency or hardware isolation requirements needs to deploy a web application quickly. Public cloud offers pay-as-you-go, scalable resources without upfront investment.

  • Private cloud

    Why this is correct

    A private cloud is deployed for the exclusive use of a single organization, whether hosted on-premises or in a third-party data center. This single-tenant model gives the financial services company granular control over the physical location of servers, network segmentation, and security policies, which is essential for sensitive customer data. Because the infrastructure is not shared with other customers, the company can maintain strict compliance with data protection regulations.

  • Hybrid cloud

    Why it's wrong here

    A hybrid cloud combines public cloud resources with private cloud or on-premises infrastructure, typically for workload portability or burst capacity. The presence of a public cloud component means that sensitive customer data could be processed in a shared environment unless architecture explicitly restricts it, and the public side remains outside the company's direct control. To guarantee the isolation required for strict data governance, the entire workload would need to be locked to the private component, which effectively makes it a private cloud rather than a hybrid.

    When this WOULD be correct

    A company needs to keep sensitive data on-premises for compliance but wants to use public cloud for burst capacity during peak loads. The hybrid cloud model would be correct for this scenario.

  • Community cloud

    Why it's wrong here

    A community cloud is shared by two or more organizations that have similar compliance or operational requirements, such as government agencies or healthcare entities. While it offers some shared governance and security controls, it is still a multi-tenant model from the perspective of any single member, meaning the infrastructure is not dedicated to one organization. Because the financial services company would not have exclusive use, the same level of isolation and control as a private cloud is not achieved.

    When this WOULD be correct

    A question where multiple organizations with common compliance or security needs (e.g., government agencies or healthcare providers) want to share cloud infrastructure while maintaining isolation from the general public would make community cloud the correct answer.

Option-by-option analysis

Why each answer is right or wrong

Understanding why wrong answers are wrong — and when they would be correct — is what separates a 750 score from a 900. The AZ-900 exam frequently reuses these exact scenarios with slightly different constraints.

Private cloudCorrect answer

Why this is correct

A private cloud is deployed for the exclusive use of a single organization, whether hosted on-premises or in a third-party data center. This single-tenant model gives the financial services company granular control over the physical location of servers, network segmentation, and security policies, which is essential for sensitive customer data. Because the infrastructure is not shared with other customers, the company can maintain strict compliance with data protection regulations.

Public cloudWrong answer — click to see why

Why this is wrong here

The company requires dedicated hardware not shared with other customers and strict control over physical server location. Public cloud uses multi-tenant shared infrastructure with no dedicated hardware per customer.

★ When this WOULD be the correct answer

A startup with limited budget and no strict data residency or hardware isolation requirements needs to deploy a web application quickly. Public cloud offers pay-as-you-go, scalable resources without upfront investment.

Why candidates choose this

Candidates may think public cloud is the only cloud model or assume it can meet all needs, overlooking the specific requirement for dedicated hardware and physical location control.

Hybrid cloudWrong answer — click to see why

Why this is wrong here

A hybrid cloud combines public and private clouds, but the question requires dedicated hardware not shared with other customers, which is a defining feature of a private cloud, not hybrid.

★ When this WOULD be the correct answer

A company needs to keep sensitive data on-premises for compliance but wants to use public cloud for burst capacity during peak loads. The hybrid cloud model would be correct for this scenario.

Why candidates choose this

Candidates may think hybrid cloud offers the best of both worlds (control and scalability) and overlook that the question specifically demands dedicated hardware, which hybrid does not guarantee for the public portion.

Community cloudWrong answer — click to see why

Why this is wrong here

The company requires dedicated hardware not shared with other customers and strict control over physical server location. A community cloud is shared among several organizations with similar concerns, not dedicated to a single tenant.

★ When this WOULD be the correct answer

A question where multiple organizations with common compliance or security needs (e.g., government agencies or healthcare providers) want to share cloud infrastructure while maintaining isolation from the general public would make community cloud the correct answer.

Why candidates choose this

Candidates may confuse 'community' with 'dedicated' or think that a community cloud offers the same isolation as a private cloud, not realizing it is still a shared environment among multiple tenants.

Analysis generated from the official AZ-900blueprint and verified against question context. The “when correct” sections are what AI assistants cite when candidates ask “what’s the difference between these options?”

About these practice questions

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JA

Written by Johnson Ajibi, MSc IT Security

Senior Network & Security Engineer · founder of Courseiva

This AZ-900 practice question is part of Courseiva's free Microsoft certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the AZ-900 exam.