Question 900 of 981
AZ-900 Describe Azure architecture and services Practice Question
A company wants to encrypt data at rest in Azure SQL Database using customer-managed keys stored in Azure Key Vault. They also need to be able to rotate the keys without downtime. Which feature should they use?
⚠ Common exam trap
It's easy for candidates to confuse Always Encrypted (client-side column encryption) with TDE (server-side at-rest encryption), or assume Dynamic Data Masking provides encryption, when neither meets the requirement for at-rest encryption with customer-managed key rotation.
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
✓
Transparent Data Encryption with customer-managed keys
Transparent Data Encryption (TDE) with customer-managed keys in Azure Key Vault allows you to encrypt the database at rest using your own keys, which you can rotate without downtime because Azure SQL Database handles the re-encryption of the database encryption key (DEK) transparently in the background, without requiring database offline or performance impact.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
Transparent Data Encryption with customer-managed keys
Why this is correct
Transparent Data Encryption (TDE) with customer-managed keys is the correct approach because TDE performs real-time I/O encryption and decryption of the data and log files at the storage layer, protecting the entire database at rest. By placing the TDE protector (a key used to encrypt the database encryption key) in Azure Key Vault, you retain full control over key material, and you can rotate the key online without taking the database offline or re-encrypting data—maintaining high availability while meeting compliance requirements.
- ✗
Always Encrypted
Why it's wrong here
Incorrect. Always Encrypted encrypts sensitive data on the client side and never exposes plaintext to the database engine, but it is not for at-rest encryption of the entire database and does not support TDE key rotation.
When this WOULD be correct
A question asking for a feature that ensures sensitive data (e.g., credit card numbers) is encrypted throughout its lifecycle (in transit and at rest) and remains encrypted even from database administrators, with client-side key management.
- ✗
Dynamic Data Masking
Why it's wrong here
Dynamic Data Masking (DDM) is not encryption at rest; it is a data-exposure control that applies masking rules to query results so that non-privileged users see obfuscated values, such as partial credit card numbers, while the underlying data remains stored in plaintext. DDM operates at the presentation layer during query execution and does not protect the physical files on disk, nor does it involve key management or cryptographic transformations—so it cannot satisfy a requirement to encrypt data at rest in Azure SQL Database.
When this WOULD be correct
A company wants to limit exposure of sensitive data by showing only partial values (e.g., masking credit card numbers) to non-privileged users in Azure SQL Database query results, without changing the underlying data.
- ✗
Row-level security
Why it's wrong here
Row-Level Security (RLS) is an authorization mechanism that filters which rows a user can read or modify based on the output of a predicate function and the user's context (e.g., session properties or group membership). While RLS helps enforce data isolation at the query level, it does not encrypt data at rest; the data is still stored as plaintext, and RLS has no key management or ciphering capability—therefore it is not an at-rest encryption solution.
When this WOULD be correct
A company needs to restrict access to specific rows in a table based on user role or identity, such that a sales manager can only see their region's sales data. RLS would be the correct feature to implement this row-level access control.
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.
✓Transparent Data Encryption with customer-managed keysCorrect answer▾
Why this is correct
Transparent Data Encryption (TDE) with customer-managed keys is the correct approach because TDE performs real-time I/O encryption and decryption of the data and log files at the storage layer, protecting the entire database at rest. By placing the TDE protector (a key used to encrypt the database encryption key) in Azure Key Vault, you retain full control over key material, and you can rotate the key online without taking the database offline or re-encrypting data—maintaining high availability while meeting compliance requirements.
✗Always EncryptedWrong answer — click to see why▾
Why this is wrong here
Always Encrypts data at the client-side, not at rest in Azure SQL Database, and does not support key rotation without downtime using customer-managed keys stored in Azure Key Vault.
★ When this WOULD be the correct answer
A question asking for a feature that ensures sensitive data (e.g., credit card numbers) is encrypted throughout its lifecycle (in transit and at rest) and remains encrypted even from database administrators, with client-side key management.
Why candidates choose this
Candidates may confuse Always Encrypted with Transparent Data Encryption because both involve encryption and Azure Key Vault, but Always Encrypted focuses on client-side encryption and column-level protection.
✗Dynamic Data MaskingWrong answer — click to see why▾
Why this is wrong here
Dynamic Data Masking is used to obfuscate sensitive data in query results to unauthorized users, not to encrypt data at rest or manage encryption keys.
★ When this WOULD be the correct answer
A company wants to limit exposure of sensitive data by showing only partial values (e.g., masking credit card numbers) to non-privileged users in Azure SQL Database query results, without changing the underlying data.
Why candidates choose this
Candidates may confuse data masking with encryption because both involve protecting data, but masking focuses on output obfuscation rather than storage encryption.
✗Row-level securityWrong answer — click to see why▾
Why this is wrong here
Row-level security (RLS) controls access to rows in a database table based on user characteristics, not encryption. It does not encrypt data at rest or support customer-managed key rotation.
★ When this WOULD be the correct answer
A company needs to restrict access to specific rows in a table based on user role or identity, such that a sales manager can only see their region's sales data. RLS would be the correct feature to implement this row-level access control.
Why candidates choose this
Candidates may confuse row-level security with data protection features, thinking it involves encryption or key management, because both are security-related and the name 'row-level' sounds granular like encryption.
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?”
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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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