- A
Azure Data Lake Storage Gen2
Why wrong: Data Lake Storage Gen2 adds hierarchical namespace and ACLs, which are not needed for simple staging and may incur slight additional costs.
- B
Azure Blob Storage
Blob Storage provides low-cost object storage for large volumes of streaming data, ideal for staging before processing.
- C
Azure SQL Database
Why wrong: Azure SQL Database is a relational database meant for transactional queries, not cost-effective for high-volume staging.
- D
Azure Cosmos DB
Why wrong: Cosmos DB is a NoSQL database optimized for low-latency access, but it is more expensive than Blob Storage for bulk staging.
Quick Answer
The answer is Azure Blob Storage because it offers the most cost-effective storage for streaming raw data staging, where the primary goal is to hold large volumes of unprocessed events before transformation. With each IoT event under 1 KB and a rate of 10,000 events per second, Blob Storage’s low per-gigabyte cost and scalable object storage make it ideal for this batch-oriented staging pattern, unlike transactional databases that charge for compute and throughput. On the DP-203 exam, this scenario tests your ability to distinguish between storage tiers for latency-sensitive versus cost-sensitive workloads—a common trap is choosing Azure Data Lake Storage Gen2, which adds a hierarchical namespace that is unnecessary for simple flat staging. Another pitfall is selecting Azure Cosmos DB for its real-time capabilities, but that would inflate costs for raw data that isn’t queried immediately. Remember the memory tip: “Blob for the job, Lake for the hierarchy, DB for the query.”
DP-203 Develop data processing Practice Question
This DP-203 practice question tests your understanding of develop 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.
You are designing a data processing solution for a real-time dashboard. The source data is streaming from IoT devices at a rate of 10,000 events per second. Each event is under 1 KB. You need to store the raw data in a staging area before processing, and you must minimize storage costs. Which storage solution should you use?
Clue words in this question
Noticing these words before you look at the options changes how you read each choice.
Clue:
"minimum / minimize"Why it matters: Asks for the least resource use — fewest addresses, smallest subnet, lowest overhead. Eliminate over-provisioned options even if they would technically work.
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
Azure Blob Storage
Azure Blob Storage is cost-effective for large volumes of streaming data that will be processed later. Azure Data Lake Storage Gen2 is built on Blob Storage but adds hierarchical namespace, which is not required for simple staging. Azure SQL Database and Azure Cosmos DB are more expensive and suited for transactional or real-time query workloads.
Key principle: OSPF neighbour adjacency depends on matching area, hello/dead timers, network type, and authentication — IP reachability alone is not enough.
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 Data Lake Storage Gen2
Why it's wrong here
Data Lake Storage Gen2 adds hierarchical namespace and ACLs, which are not needed for simple staging and may incur slight additional costs.
- ✓
Azure Blob Storage
Why this is correct
Blob Storage provides low-cost object storage for large volumes of streaming data, ideal for staging before processing.
Clue confirmation
The clue word "minimum / minimize" in the question point toward this answer.
Related concept
OSPF neighbours must agree on key parameters.
- ✗
Azure SQL Database
Why it's wrong here
Azure SQL Database is a relational database meant for transactional queries, not cost-effective for high-volume staging.
- ✗
Azure Cosmos DB
Why it's wrong here
Cosmos DB is a NoSQL database optimized for low-latency access, but it is more expensive than Blob Storage for bulk staging.
Common exam traps
Common exam trap: OSPF can fail even when IP connectivity looks correct
OSPF neighbour formation depends on matching areas, timers, network type, authentication and passive-interface behaviour. Do not choose an answer only because the devices can ping.
Detailed technical explanation
How to think about this question
OSPF questions usually test the details that control adjacency and route selection. Read the neighbour state, area, router ID and interface configuration before deciding what is wrong.
KKey Concepts to Remember
- OSPF neighbours must agree on key parameters.
- Router ID selection can affect neighbour relationships and LSDB output.
- OSPF cost influences the preferred path.
- A route can appear in OSPF information but not become the installed route.
TExam Day Tips
- Check area mismatch first when OSPF adjacency fails.
- Review passive interfaces when a network is advertised but no neighbour forms.
- Use show ip ospf neighbor and show ip route clues carefully.
Key takeaway
OSPF neighbour adjacency depends on matching area, hello/dead timers, network type, and authentication — IP reachability alone is not enough.
Real-world example
How this comes up in practice
A startup's cloud architect reviews their monthly bill and notices costs are higher than expected for a long-running batch job. Switching from on-demand instances to Reserved Instances — or using Spot/Preemptible VMs — can reduce compute costs by up to 72 %. Questions like this test whether you understand the tradeoffs between commitment, flexibility, and cost across cloud pricing models.
What to study next
Got this wrong? Here's your next step.
Review OSPF neighbour requirements — matching area type, hello and dead timers, network type, stub flags, and authentication. Study show ip ospf neighbor states (INIT, 2-WAY, FULL). Then practise related DP-203 OSPF questions on adjacency and route selection.
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Develop data processing — study guide chapter
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Develop data processing practice questions
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FAQ
Questions learners often ask
What does this DP-203 question test?
Develop data processing — This question tests Develop data processing — OSPF neighbours must agree on key parameters..
What is the correct answer to this question?
The correct answer is: Azure Blob Storage — Azure Blob Storage is cost-effective for large volumes of streaming data that will be processed later. Azure Data Lake Storage Gen2 is built on Blob Storage but adds hierarchical namespace, which is not required for simple staging. Azure SQL Database and Azure Cosmos DB are more expensive and suited for transactional or real-time query workloads.
What should I do if I get this DP-203 question wrong?
Review OSPF neighbour requirements — matching area type, hello and dead timers, network type, stub flags, and authentication. Study show ip ospf neighbor states (INIT, 2-WAY, FULL). Then practise related DP-203 OSPF questions on adjacency and route selection.
Are there clue words in this question I should notice?
Yes — watch for: "minimum / minimize". Asks for the least resource use — fewest addresses, smallest subnet, lowest overhead. Eliminate over-provisioned options even if they would technically work.
What is the key concept behind this question?
OSPF neighbours must agree on key parameters.
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Last reviewed: Jun 21, 2026
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