- A
Enable soft delete to recover data
Why wrong: Soft delete increases storage cost due to retention.
- B
Use geo-redundant storage (GRS) for durability
Why wrong: GRS increases cost.
- C
Implement lifecycle management policies to move data to archive tier
Archive tier is cheapest.
- D
Store data in compressed columnar format like Parquet
Reduces storage footprint.
- E
Encrypt data with Azure Storage Service Encryption
Why wrong: Encryption does not affect cost.
DP-203 Design and implement data storage Practice Question
This DP-203 practice question tests your understanding of design and implement data storage. 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 strategies can be used to optimize storage costs for historical data in Azure Data Lake Storage Gen2?
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
Implement lifecycle management policies to move data to archive tier
Option C is correct because Azure Blob Storage lifecycle management policies allow you to automatically transition data from hot to cool to archive tiers based on age or last modification time. Moving historical data to the archive tier significantly reduces storage costs, as archive is the lowest-cost storage tier, though it incurs higher retrieval latency and costs.
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.
- ✗
Enable soft delete to recover data
Why it's wrong here
Soft delete increases storage cost due to retention.
- ✗
Use geo-redundant storage (GRS) for durability
Why it's wrong here
GRS increases cost.
- ✓
Implement lifecycle management policies to move data to archive tier
Why this is correct
Archive tier is cheapest.
Related concept
Read the scenario before looking for a memorised answer.
- ✓
Store data in compressed columnar format like Parquet
Why this is correct
Reduces storage footprint.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
Encrypt data with Azure Storage Service Encryption
Why it's wrong here
Encryption does not affect cost.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates confuse data protection features (soft delete, encryption, replication) with cost optimization strategies, but only tiering and compression directly reduce the amount or cost of stored data.
Detailed technical explanation
How to think about this question
Lifecycle management policies in Azure Data Lake Storage Gen2 operate at the blob level and support rules based on 'last modified' or 'created' timestamps, with actions like 'tierToArchive' and 'delete'. The archive tier has a 180-day minimum storage duration, so moving data too early can incur early deletion fees; also, data in archive must be rehydrated to hot or cool before reading, which can take up to 15 hours for standard priority. In real-world scenarios, you might combine lifecycle policies with Parquet compression (Option D) to further reduce storage footprint before archiving.
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 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.
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FAQ
Questions learners often ask
What does this DP-203 question test?
Design and implement data storage — This question tests Design and implement data storage — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Implement lifecycle management policies to move data to archive tier — Option C is correct because Azure Blob Storage lifecycle management policies allow you to automatically transition data from hot to cool to archive tiers based on age or last modification time. Moving historical data to the archive tier significantly reduces storage costs, as archive is the lowest-cost storage tier, though it incurs higher retrieval latency and costs.
What should I do if I get this DP-203 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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Last reviewed: Jun 24, 2026
This DP-203 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 DP-203 exam.
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