- A
Public cloud
Why wrong: A public cloud deployment means that all resources are provisioned over the internet by a third-party cloud provider like Azure, and the consumer does not maintain any on-premises infrastructure. Because the company still runs the legacy application on-premises, this is not a pure public cloud model.
- B
Private cloud
Why wrong: A private cloud is used exclusively by a single organization, typically within its own data centers. While the company has an on-premises component, it also uses Azure (a public cloud) for bursting compute capacity, so a purely private cloud model does not fit the scenario.
- C
Hybrid cloud
This is correct. A hybrid cloud integrates an on-premises environment (private cloud) with a public cloud (Azure) using network connectivity such as a VPN. It allows workloads to run in both environments and in this case enables the company to meet regulatory requirements while gaining scalability from the cloud.
- D
Community cloud
Why wrong: A community cloud is shared among several organizations that have similar compliance, security, or regulatory requirements. The scenario describes a single company using its own on-premises infrastructure in combination with Azure, not a shared infrastructure among multiple organizations, so this does not apply.
AZ-900 Describe cloud concepts Practice Question
This AZ-900 practice question tests your understanding of describe cloud concepts. Match the stated requirement to the specific cloud service, access model, or configuration option — many options are valid in isolation but not for this scenario. 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 must store data within the country due to regulatory requirements. To handle occasional peak workloads, the company connects its local network to an Azure virtual network via a site-to-site VPN. During these peaks, the application scales out to Azure virtual machines that process compute tasks but never store regulated data outside the on-premises datacenter. Which cloud deployment model does this scenario best describe?
Clue words in this question
Noticing these words before you look at the options changes how you read each choice.
Clue:
"best"Why it matters: Signals that multiple options may be partially correct. Choose the option that most directly solves the exact problem described, not the one that sounds most complete.
Clue:
"never"Why it matters: Absolute qualifier. True only if the statement has zero exceptions — be cautious of options that seem obvious but break down in edge cases.
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
Option C is correct because the scenario combines an on-premises private infrastructure (the legacy application and regulated data) with Azure public cloud resources (virtual machines for compute scaling) connected via a site-to-site VPN. This integration of private and public resources to handle variable workloads while maintaining data sovereignty defines a hybrid cloud deployment model.
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 deployment means that all resources are provisioned over the internet by a third-party cloud provider like Azure, and the consumer does not maintain any on-premises infrastructure. Because the company still runs the legacy application on-premises, this is not a pure public cloud model.
- ✗
Private cloud
Why it's wrong here
A private cloud is used exclusively by a single organization, typically within its own data centers. While the company has an on-premises component, it also uses Azure (a public cloud) for bursting compute capacity, so a purely private cloud model does not fit the scenario.
- ✓
Hybrid cloud
Why this is correct
This is correct. A hybrid cloud integrates an on-premises environment (private cloud) with a public cloud (Azure) using network connectivity such as a VPN. It allows workloads to run in both environments and in this case enables the company to meet regulatory requirements while gaining scalability from the cloud.
Clue confirmation
The clue words "best", "never" in the question point toward this answer.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
Community cloud
Why it's wrong here
A community cloud is shared among several organizations that have similar compliance, security, or regulatory requirements. The scenario describes a single company using its own on-premises infrastructure in combination with Azure, not a shared infrastructure among multiple organizations, so this does not apply.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates may incorrectly choose public cloud because Azure VMs are used, failing to recognize that the on-premises component and VPN connectivity make this a hybrid deployment, not a purely public one.
Trap categories for this question
Similar concept trap
A community cloud is shared among several organizations that have similar compliance, security, or regulatory requirements. The scenario describes a single company using its own on-premises infrastructure in combination with Azure, not a shared infrastructure among multiple organizations, so this does not apply.
Scenario analysis trap
A private cloud is used exclusively by a single organization, typically within its own data centers. While the company has an on-premises component, it also uses Azure (a public cloud) for bursting compute capacity, so a purely private cloud model does not fit the scenario.
Detailed technical explanation
How to think about this question
A site-to-site VPN uses IPsec (IKEv1 or IKEv2) to create an encrypted tunnel between the on-premises VPN gateway and Azure VPN Gateway, enabling secure communication over the public internet. The application's compute tasks run on Azure VMs that access on-premises data via the VPN, but the regulated data never leaves the on-premises network—this is a common pattern for burst-to-cloud architectures where data residency is critical. The hybrid model allows organizations to maintain compliance while leveraging cloud elasticity for transient workloads.
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
An e-commerce site experiences heavy traffic on Black Friday and near-zero traffic during off-peak weeks. Rather than provisioning permanent large VMs, the team uses auto-scaling groups that add capacity automatically under load and reduce it overnight. Questions like this test whether you understand elasticity, availability zones, and cloud compute scaling patterns.
What to study next
Got this wrong? Here's your next step.
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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 — Option C is correct because the scenario combines an on-premises private infrastructure (the legacy application and regulated data) with Azure public cloud resources (virtual machines for compute scaling) connected via a site-to-site VPN. This integration of private and public resources to handle variable workloads while maintaining data sovereignty defines a hybrid cloud deployment model.
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.
Are there clue words in this question I should notice?
Yes — watch for: "best", "never". Signals that multiple options may be partially correct. Choose the option that most directly solves the exact problem described, not the one that sounds most complete.
What is the key concept behind this question?
Read the scenario before looking for a memorised answer.
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Last reviewed: Jun 11, 2026
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.
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