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A financial services company must migrate a critical application to Azure. Regulatory compliance requires that the virtual machines (VMs) hosting this application run on physical servers that are dedicated solely to the company and not shared with any other Azure customer. The company needs full control over server hardware maintenance, including the ability to schedule updates and isolate the environment at the physical layer. Which Azure compute solution should the company use?

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A financial services company must migrate a critical application to Azure. Regulatory compliance requires that the virtual machines (VMs) hosting this application run on physical servers that are dedicated solely to the company and not shared with any other Azure customer. The company needs full control over server hardware maintenance, including the ability to schedule updates and isolate the environment at the physical layer. Which Azure compute solution should the company use?

Answer choices

Why each option matters

Good practice is not just finding the correct option. The wrong answers often show the exact trap the exam wants you to fall into.

A

Best answer

Azure Dedicated Host

Azure Dedicated Host provides physical servers dedicated to one Azure subscription. VMs are isolated at the hardware level, and the customer controls maintenance and scheduling. This fully satisfies the compliance requirement for physical server isolation.

B

Distractor review

Azure Reserved Instances

Reserved Instances are a billing and pricing model that offers discounted rates in exchange for a one- or three-year commitment. They do not provide any physical server isolation; VMs purchased under Reserved Instances may still run on shared physical hardware.

C

Distractor review

Azure Virtual Machine Scale Sets

Virtual Machine Scale Sets allow you to deploy and manage a group of identical, load-balanced VMs that can scale in or out automatically. They do not guarantee that the VMs are placed on a dedicated physical host; the underlying hardware may be shared with other tenants.

D

Distractor review

Azure Confidential Computing

Confidential computing protects data in use by using hardware-based trusted execution environments (e.g., Intel SGX). While this provides strong data encryption during processing, it does not ensure that the entire physical server is dedicated to a single customer. Multiple tenants' VMs using confidential computing can still reside on the same physical host.

Common exam trap

Common exam trap: answer the scenario, not the keyword

Many certification questions include familiar terms but test a specific constraint. Read the exact wording before choosing an answer that is generally true but wrong for this case.

Technical deep dive

How to think about this question

This question should be treated as a scenario, not a definition check. Identify the problem, the constraint and the best action. Then compare each option against those facts.

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.
  • Use explanations to understand the rule behind the answer.

TExam Day Tips

  • Underline the problem statement mentally.
  • 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.

Related practice questions

Related AZ-900 practice-question pages

Use these pages to review the topic behind this question. This is how one missed question becomes focused revision.

More questions from this exam

Keep practising from the same exam bank, or move into a focused topic page if this question exposed a weak area.

Question 1

A developer is building a serverless application that requires integration with an on-premises SQL Server database for real-time data processing. The on-premises network is connected to Azure via a site-to-site VPN. Which Azure service would allow the function to securely access the on-premises database without exposing it to the public internet?

Question 2

A solutions architect is designing a storage solution for a large media company. The company needs to store video files that are accessed infrequently but must be retained for several years for compliance. Which two Azure storage options meet these requirements? (Select two.)

Question 3

A company deploys a multi-tier application using Azure virtual machines. The web tier VMs must be evenly distributed across two distinct data centers within an Azure region to avoid a single point of failure from an infrastructure outage. Which Azure construct should they use to meet this requirement?

Question 4

A company wants to enforce a set of security policies across all their Azure subscriptions. They have created several individual policy definitions. Which Azure construct should they use to group these policies together and assign them as a single package?

Question 5

A company deploys a line-of-business application on an Azure virtual machine. The IT team wants to ensure the application remains secure. According to the shared responsibility model, which of the following security tasks is the sole responsibility of the customer (the company)?

Question 6

A company develops a web API that runs on Azure App Service. The development team wants to deploy a new version of the API to a staging environment, run integration tests against it, and then gradually shift production traffic to the new version. If any issues are detected, they want to immediately roll back to the previous version without redeploying. Which Azure App Service feature should the team use to meet these requirements?

FAQ

Questions learners often ask

What does this AZ-900 question test?

Read the scenario before looking for a memorised answer.

What is the correct answer to this question?

The correct answer is: Azure Dedicated Host — Azure Dedicated Host provides dedicated physical servers that host one or more Azure VMs. This ensures that the physical server is not shared with other customers, meeting strict isolation and compliance requirements. The customer has control over maintenance events and can schedule updates. Reserved Instances offer discounted pricing but no physical isolation. Virtual Machine Scale Sets provide auto-scaling and load balancing across a set of VMs but do not guarantee physical server exclusivity. Confidential computing protects data in use through hardware-based trusted execution environments but does not guarantee that the underlying physical server is dedicated to a single customer.

What should I do if I get this AZ-900 question wrong?

Then try more questions from the same exam bank and focus on understanding why the wrong options are tempting.

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