You have an Azure SQL Database that stores sensitive customer data. You need to ensure that the data is encrypted at rest using a customer-managed key stored in Azure Key Vault. What should you configure?
Transparent Data Encryption with a customer-managed key satisfies the encryption-at-rest requirement by wrapping the database encryption key with an asymmetric key held in Azure Key Vault. This gives you control over the key lifecycle, unlike service-managed keys, and TDE operates beneath the application layer, so no schema or query changes are needed.
Why this answer
Transparent Data Encryption (TDE) with a customer-managed key stored in Azure Key Vault encrypts the database at rest, using a key that you control and rotate independently. This meets the requirement for encryption at rest with a customer-managed key, as TDE performs real-time I/O encryption and decryption of the data and log files without requiring application changes.
Exam trap
The trap here is that candidates often confuse Always Encrypted (which encrypts specific columns at the client side) with TDE (which encrypts the entire database at rest), and they may choose Always Encrypted because it also uses Azure Key Vault, but it does not meet the 'encryption at rest for the entire database' requirement.
How to eliminate wrong answers
Option A is wrong because Dynamic Data Masking (DDM) obfuscates data in query results to unauthorized users but does not encrypt data at rest; it is a presentation-layer control. Option B is wrong because Row-Level Security (RLS) restricts row access based on user context or predicates, but it does not provide encryption at rest. Option D is wrong because Always Encrypted encrypts sensitive columns at the client-side, protecting data in transit and at rest, but it requires application changes and does not encrypt the entire database at rest; the question specifies encryption at rest for the entire database, not just specific columns.