This DP-203 practice question tests your understanding of design and implement data storage. This is a configuration task: choose the command set that satisfies every stated requirement. Small differences — like 'secret' vs 'password' or 'transport input ssh' vs 'all' — change whether the answer is correct. 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 data engineer needs to store CSV files containing customer data in Azure Blob Storage. The files must be encrypted at rest using a customer-managed key stored in Azure Key Vault. What should they configure?
Azure Disk Encryption
Why wrong: Incorrect. Disk Encryption is for VM disks, not Blob Storage.
Azure Storage Firewall
Why wrong: Incorrect. Firewall controls network access, not encryption.
Azure Storage Service Encryption (SSE) with customer-managed keys
Correct. SSE encrypts data at rest and can use CMK from Key Vault.
Azure Information Protection
Why wrong: Incorrect. This is for classification and labeling, not encryption.
Answer choices
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
Azure Storage Service Encryption (SSE) with customer-managed keys
Azure Storage Service Encryption (SSE) for Blob Storage encrypts data at rest automatically. By choosing customer-managed keys (CMK) stored in Azure Key Vault, the customer retains control over the encryption keys, meeting the requirement for customer-managed key encryption at rest. SSE with CMK is the correct service for encrypting blobs with a key the customer manages.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
For each option: why learners choose it and why it is or isn't the right answer here.
Azure Disk Encryption
Why it's wrong here
Incorrect. Disk Encryption is for VM disks, not Blob Storage.
Azure Storage Firewall
Why it's wrong here
Incorrect. Firewall controls network access, not encryption.
Azure Storage Service Encryption (SSE) with customer-managed keys
Why this is correct
Correct. SSE encrypts data at rest and can use CMK from Key Vault.
Related concept
Read the scenario before looking for a memorised answer.
Azure Information Protection
Why it's wrong here
Incorrect. This is for classification and labeling, not encryption.
Common exam traps
The trap here is confusing Azure Disk Encryption (which encrypts VM disks) with Azure Storage Service Encryption (which encrypts blob data), leading candidates to select Option A when the requirement is for blob-level encryption with customer-managed keys.
Detailed technical explanation
SSE with customer-managed keys uses envelope encryption: a unique Data Encryption Key (DEK) per blob is encrypted by a Key Encryption Key (KEK) stored in Azure Key Vault. The KEK can be rotated or disabled by the customer, immediately invalidating access to blobs encrypted under the old key. This provides a clear separation of duties and meets compliance requirements like HIPAA or GDPR where key ownership is mandated.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
A media company stores terabytes of video archives that are accessed once a year for audit purposes. Moving these objects to a cold storage tier (Azure Archive, S3 Glacier, or Google Nearline) costs a fraction of hot storage. Questions like this test whether you understand storage tiers, access frequency tradeoffs, and retrieval latency requirements.
What to study next
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FAQ
Design and implement data storage — This question tests Design and implement data storage — Read the scenario before looking for a memorised answer..
The correct answer is: Azure Storage Service Encryption (SSE) with customer-managed keys — Azure Storage Service Encryption (SSE) for Blob Storage encrypts data at rest automatically. By choosing customer-managed keys (CMK) stored in Azure Key Vault, the customer retains control over the encryption keys, meeting the requirement for customer-managed key encryption at rest. SSE with CMK is the correct service for encrypting blobs with a key the customer manages.
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
Read the scenario before looking for a memorised answer.
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Last reviewed: Jun 11, 2026
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