This AZ-900 practice question tests your understanding of describe cloud concepts. Read the scenario carefully and evaluate each option against the stated constraints before committing to an answer. 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 small business wants to run its accounting application without managing the underlying operating systems or hardware. The application is accessed through a web browser. Which cloud service model is being used?
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Software as a Service (SaaS)
The correct answer is C (SaaS) because the business uses a web browser to access the accounting application without managing the underlying OS or hardware. SaaS delivers fully functional software over the internet, where the provider handles all infrastructure, platform, and application management, matching the scenario's requirement of zero administrative overhead.
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.
✗
Infrastructure as a Service (IaaS)
Why it's wrong here
IaaS provides virtualized computing resources; the user is responsible for managing the OS, middleware, and applications.
✗
Platform as a Service (PaaS)
Why it's wrong here
PaaS provides a managed hosting environment for custom applications; the user still develops and manages the application code.
✓
Software as a Service (SaaS)
Why this is correct
SaaS delivers a fully managed application to end users, typically via a web browser, with no management of underlying infrastructure.
Related concept
Read the scenario before looking for a memorised answer.
✗
Functions as a Service (FaaS)
Why it's wrong here
FaaS is a subset of PaaS for executing individual functions in response to events; it is not a full application delivery model.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates confuse 'not managing the OS/hardware' with PaaS, forgetting that PaaS still requires the customer to manage the application code and its deployment, whereas SaaS delivers a fully managed application accessible via browser.
Detailed technical explanation
How to think about this question
SaaS applications like Microsoft 365 or Salesforce rely on multi-tenant architectures where a single instance of the software serves multiple customers, with data isolation enforced at the application layer. The provider manages patching, scaling, and high availability transparently; for example, Azure AD handles authentication via OAuth 2.0 and OpenID Connect, while the application itself runs on a PaaS or IaaS backend invisible to the tenant. A real-world scenario: a small business using Dynamics 365 Finance for accounting never touches the SQL Server or IIS configuration—the provider automatically applies security updates and scales resources based on load.
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
A company's IT admin needs to give a contractor read-only access to production logs without sharing account credentials. Using role-based access control (RBAC) and temporary scoped permissions — not a permanent shared password — is the correct pattern. Questions like this test whether you can apply least-privilege access across cloud identity services.
Related glossary terms
Concepts from this question explained
These glossary pages explain the core terms tested in this AZ-900 question in full detail.
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: Software as a Service (SaaS) — The correct answer is C (SaaS) because the business uses a web browser to access the accounting application without managing the underlying OS or hardware. SaaS delivers fully functional software over the internet, where the provider handles all infrastructure, platform, and application management, matching the scenario's requirement of zero administrative overhead.
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.
What is the key concept behind this question?
Read the scenario before looking for a memorised answer.
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Question Discussion
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