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Describe cloud conceptsmediumMultiple ChoiceObjective-mapped

AZ-900 Describe cloud concepts Practice Question

A company is planning to migrate its customer relationship management (CRM) system to the cloud. The company is evaluating three service models: deploying the CRM on Azure Virtual Machines (IaaS), using Azure App Service to host a custom CRM web application (PaaS), and subscribing to a cloud-based CRM software like Dynamics 365 (SaaS). According to the Microsoft shared responsibility model, which of the following statements accurately describes the division of security responsibilities across these three options?

⚠ Common exam trap

Many candidates assume Microsoft is responsible for the guest OS in IaaS or that the customer is responsible for everything in IaaS, confusing the layered responsibility boundaries across the three service models.

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

In all three models, Microsoft is responsible for securing the physical datacenter and network infrastructure. For IaaS, the customer is responsible for the guest OS and applications; for PaaS, the customer is responsible for the application code and data; for SaaS, the customer is responsible for data and user accounts.

It accurately reflects the Microsoft shared responsibility model across IaaS, PaaS, and SaaS. In all three models, Microsoft is responsible for the physical datacenter and network infrastructure. For IaaS (Azure VMs), the customer manages the guest OS and applications; for PaaS (Azure App Service), the customer manages the application code and data; for SaaS (Dynamics 365), the customer manages data and user accounts. This division aligns with the principle that responsibility shifts from the customer to Microsoft as the service model moves from IaaS to SaaS.

Answer analysis

Option-by-option breakdown

For each option: why learners choose it and why it is or isn't the right answer here.

  • In all three models, Microsoft is responsible for securing the physical datacenter and network infrastructure. For IaaS, the customer is responsible for the guest OS and applications; for PaaS, the customer is responsible for the application code and data; for SaaS, the customer is responsible for data and user accounts.

    Why this is correct

    This is accurate: the shared responsibility model always assigns physical security of datacenters, including networking hardware, to Microsoft across IaaS, PaaS, and SaaS. In IaaS, the customer manages the guest operating system and all installed applications, along with associated patches and configuration. In PaaS, Microsoft handles the underlying platform and runtime, yet the customer retains responsibility for the application code and its data. In SaaS, Microsoft operates the entire service, so the customer's duties narrow to managing their data, user identities, and access controls.

  • In IaaS, Microsoft is responsible for the guest OS; in PaaS, Microsoft is responsible for the application code; in SaaS, the customer is responsible only for data.

    Why it's wrong here

    This is incorrect because in IaaS the customer is responsible for the guest OS, not Microsoft. In PaaS, the customer is responsible for the application code. In SaaS, the customer is responsible for data and user access, not just data.

  • In IaaS, the customer is responsible for everything from the physical infrastructure up; in PaaS, Microsoft is responsible for the application runtime and the customer is responsible only for data; in SaaS, Microsoft is responsible for everything.

    Why it's wrong here

    This is incorrect because in IaaS, Microsoft is responsible for the physical infrastructure (datacenter, networking, servers). In PaaS, the customer is also responsible for application code and data, not just data. In SaaS, the customer is responsible for data and user access, not nothing.

    When this WOULD be correct

    This option would be correct if the question asked about a scenario where the customer manages their own physical servers on-premises (not cloud), or if the question specified a 'bare metal' IaaS where the customer controls the entire stack including the physical server. It could also apply if the question focused on a PaaS where the provider manages the runtime but the customer only provides data (e.g., a fully managed database service).

  • In all three models, the customer is responsible for securing all application code and data, while Microsoft secures the underlying hardware and operating system.

    Why it's wrong here

    This is incorrect because the division of responsibility varies by model. For IaaS, the customer secures the OS; for SaaS, Microsoft secures the underlying OS and application; the customer does not have full responsibility for application code in all models.

    When this WOULD be correct

    This option would be correct if the question specified that the customer manages the entire OS layer (e.g., customer-managed VMs in IaaS) and Microsoft only secures the physical hardware, ignoring PaaS and SaaS distinctions.

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.

In all three models, Microsoft is responsible for securing the physical datacenter and network infrastructure. For IaaS, the customer is responsible for the guest OS and applications; for PaaS, the customer is responsible for the application code and data; for SaaS, the customer is responsible for data and user accounts.Correct answer

Why this is correct

This is accurate: the shared responsibility model always assigns physical security of datacenters, including networking hardware, to Microsoft across IaaS, PaaS, and SaaS. In IaaS, the customer manages the guest operating system and all installed applications, along with associated patches and configuration. In PaaS, Microsoft handles the underlying platform and runtime, yet the customer retains responsibility for the application code and its data. In SaaS, Microsoft operates the entire service, so the customer's duties narrow to managing their data, user identities, and access controls.

In IaaS, the customer is responsible for everything from the physical infrastructure up; in PaaS, Microsoft is responsible for the application runtime and the customer is responsible only for data; in SaaS, Microsoft is responsible for everything.Wrong answer — click to see why

Why this is wrong here

Option C incorrectly states that in IaaS the customer is responsible for everything from the physical infrastructure up, but Microsoft is responsible for the physical datacenter and network. It also wrongly claims that in PaaS the customer is responsible only for data, ignoring responsibility for application code and user access.

★ When this WOULD be the correct answer

This option would be correct if the question asked about a scenario where the customer manages their own physical servers on-premises (not cloud), or if the question specified a 'bare metal' IaaS where the customer controls the entire stack including the physical server. It could also apply if the question focused on a PaaS where the provider manages the runtime but the customer only provides data (e.g., a fully managed database service).

Why candidates choose this

Candidates may confuse the shared responsibility model with the traditional on-premises model, where the customer is responsible for everything. They might also oversimplify PaaS, thinking the provider handles all runtime and the customer only provides data, ignoring application code and identity management.

In all three models, the customer is responsible for securing all application code and data, while Microsoft secures the underlying hardware and operating system.Wrong answer — click to see why

Why this is wrong here

Option D incorrectly states that Microsoft secures the operating system in all models. In IaaS, the customer secures the guest OS; in PaaS and SaaS, Microsoft secures the OS. This misrepresents the shared responsibility model.

★ When this WOULD be the correct answer

This option would be correct if the question specified that the customer manages the entire OS layer (e.g., customer-managed VMs in IaaS) and Microsoft only secures the physical hardware, ignoring PaaS and SaaS distinctions.

Why candidates choose this

Candidates may oversimplify the shared responsibility model, assuming Microsoft always handles the OS, or confuse the customer's responsibility for application code with OS security.

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?”

Quick reference

Cloud Service Model Comparison

ModelYou ManageProvider ManagesExamples
IaaSOS, runtime, apps, dataHardware, hypervisor, networkingEC2, Azure VMs, GCP Compute Engine
PaaSApps and dataOS, runtime, middleware, hardwareElastic Beanstalk, Azure App Service
SaaSData and settings onlyEverything elseMicrosoft 365, Salesforce, Workday
FaaS / ServerlessFunction code onlyInfra, scaling, runtimeLambda, Azure Functions, Cloud Run
CaaSContainers and appsKubernetes, OS, hardwareEKS, AKS, GKE

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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.