The answer is Storage Service Encryption (SSE) and customer-managed keys in Azure Key Vault, as these two features directly encrypt Azure Blob Storage data at rest. SSE is enabled by default for all storage accounts, automatically encrypting data before it is written to disk and decrypting it upon retrieval, using Microsoft-managed keys. Customer-managed keys provide an additional layer of control, allowing you to bring your own encryption keys stored in Azure Key Vault to manage the encryption key lifecycle. On the DP-203 exam, this question tests your understanding of encryption layers and common distractors: Azure Disk Encryption applies only to VM disks, TLS secures data in transit, and Azure Information Protection handles classification, not encryption at rest. A reliable memory tip is to remember that "at rest" means the data is sitting still on disk, so look for storage-level encryption options like SSE and Key Vault, not network or VM-based solutions.
DP-203 Practice Question: Secure, monitor, and optimize data storage and data processing
This DP-203 practice question tests your understanding of secure, monitor, and optimize data storage and data processing. 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.
Which TWO Azure features can be used to encrypt data at rest in Azure Blob Storage? (Choose two.)
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Customer-managed keys in Azure Key Vault
Options A and C are correct. A: Storage Service Encryption (SSE) encrypts data at rest by default. C: Customer-managed keys in Azure Key Vault provide additional control over encryption keys. Option B is wrong because Azure Disk Encryption is for VMs. Option D is wrong because TLS is for data in transit. Option E is wrong because Azure Information Protection is for classification, not encryption at rest.
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.
✗
Azure Disk Encryption
Why it's wrong here
Disk Encryption is for virtual machine disks, not Blob Storage.
✗
Azure Information Protection
Why it's wrong here
AIP is for classification and labeling, not encryption at rest.
✓
Customer-managed keys in Azure Key Vault
Why this is correct
CMK allows customers to control encryption keys for SSE.
Related concept
Read the scenario before looking for a memorised answer.
✓
Storage Service Encryption (SSE)
Why this is correct
SSE automatically encrypts data at rest in Azure Storage.
Related concept
Read the scenario before looking for a memorised answer.
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.
Detailed technical explanation
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.
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 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.
Related glossary terms
Concepts from this question explained
These glossary pages explain the core terms tested in this DP-203 question in full detail.
Identify which DP-203 exam domain this question belongs to, then review the specific concept being tested. Practise related questions in that domain and focus on understanding why each wrong answer is tempting — not just why the correct answer is right.
Secure, monitor, and optimize data storage and data processing — This question tests Secure, monitor, and optimize data storage and data processing — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Customer-managed keys in Azure Key Vault — Options A and C are correct. A: Storage Service Encryption (SSE) encrypts data at rest by default. C: Customer-managed keys in Azure Key Vault provide additional control over encryption keys. Option B is wrong because Azure Disk Encryption is for VMs. Option D is wrong because TLS is for data in transit. Option E is wrong because Azure Information Protection is for classification, not encryption at rest.
What should I do if I get this DP-203 question wrong?
Identify which DP-203 exam domain this question belongs to, then review the specific concept being tested. Practise related questions in that domain and focus on understanding why each wrong answer is tempting — not just why the correct answer is right.
What is the key concept behind this question?
Read the scenario before looking for a memorised answer.
About these practice questions
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These questions test the same concept from different angles. Work through them to make sure you can recognise it however the exam phrases it.
Variation 1. Your company uses Azure Blob Storage to store backups. You need to ensure that data is encrypted at rest using a customer-managed key stored in Azure Key Vault. Which feature should you enable?
easy
A.Azure Purview
B.Azure Disk Encryption
✓ C.Azure Storage Service Encryption with customer-managed keys
D.Azure Information Protection
Why C: Option A is correct because Azure Storage Encryption supports customer-managed keys via Key Vault. Option B is incorrect because Azure Information Protection is for classification and labeling. Option C is incorrect because Azure Disk Encryption is for VMs, not Blob Storage. Option D is incorrect because Azure Purview is a data governance service.
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Question Discussion
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