Quick Answer
The answer is Always Encrypted with secure enclaves, Transparent Data Encryption (TDE) with customer-managed keys, and TDE with service-managed keys. These three features protect data at rest by encrypting database files, backups, or specific columns, ensuring that stored data remains unreadable without the proper decryption keys. On the Microsoft Azure Database Administrator Associate DP-300 exam, this question tests your ability to distinguish between encryption layers: TDE encrypts the entire database at the file level, while Always Encrypted with secure enclaves protects sensitive columns and even allows computations on encrypted data without exposing keys to the engine. A common trap is confusing Always Encrypted with TDE—remember that TDE secures the storage layer, whereas Always Encrypted secures the data itself from the database engine. For a memory tip, think “TDE for files, Always Encrypted for columns” to keep the distinction clear.
This DP-300 practice question tests your understanding of implement a secure environment. 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 THREE security features are available in Azure SQL Database to protect data at rest?
Transparent Data Encryption (TDE) with customer-managed keys
Encrypts data at rest with customer-controlled keys.
Dynamic Data Masking
Why wrong: Masks data in query results, not at rest.
Transparent Data Encryption (TDE) with service-managed keys
Encrypts data at rest.
Row-Level Security
Why wrong: Restricts row access, not encryption.
Always Encrypted with secure enclaves
Protects sensitive data at rest and in use.
Answer choices
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
Transparent Data Encryption (TDE) with customer-managed keys
Transparent Data Encryption (TDE) with customer-managed keys (Option A) protects data at rest by encrypting the database files and backups using a key stored in Azure Key Vault, giving the customer full control over key rotation and revocation. TDE with service-managed keys (Option C) also encrypts data at rest but uses a key managed by Azure, which is simpler but offers less control. Always Encrypted with secure enclaves (Option E) protects sensitive data at rest by encrypting columns with keys that are never revealed to the database engine, and the secure enclave allows computations on encrypted data, ensuring data remains encrypted even during processing.
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.
Transparent Data Encryption (TDE) with customer-managed keys
Why this is correct
Encrypts data at rest with customer-controlled keys.
Related concept
Read the scenario before looking for a memorised answer.
Dynamic Data Masking
Why it's wrong here
Masks data in query results, not at rest.
Transparent Data Encryption (TDE) with service-managed keys
Why this is correct
Encrypts data at rest.
Related concept
Read the scenario before looking for a memorised answer.
Row-Level Security
Why it's wrong here
Restricts row access, not encryption.
Always Encrypted with secure enclaves
Why this is correct
Protects sensitive data at rest and in use.
Related concept
Read the scenario before looking for a memorised answer.
Common exam traps
The trap here is that candidates often confuse Dynamic Data Masking or Row-Level Security with encryption at rest, but these features do not encrypt stored data; they only control data visibility or output masking, which is a common misconception tested in DP-300.
Detailed technical explanation
TDE uses AES-256 encryption at the page level, automatically encrypting data as it is written to disk and decrypting it when read into memory, with the database encryption key (DEK) protected by a server-level certificate or asymmetric key stored in Azure Key Vault. Always Encrypted with secure enclaves leverages Intel SGX or VBS enclaves to perform computations on encrypted data without exposing the plaintext to the database engine, which is critical for scenarios like GDPR compliance where sensitive columns must remain encrypted even from database administrators. The service-managed key option uses Azure's built-in key management, which simplifies operations but limits the customer's ability to enforce key rotation policies or revoke access independently.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
A cloud solutions architect for a retail company is evaluating services for a new workload. The correct answer here reflects best practice for the specific scenario described — not a general cloud recommendation. Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option. Cloud exam questions reward reading the constraint carefully: the same technology can be right or wrong depending on the use case.
What to study next
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
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FAQ
Implement a secure environment — This question tests Implement a secure environment — Read the scenario before looking for a memorised answer..
The correct answer is: Transparent Data Encryption (TDE) with customer-managed keys — Transparent Data Encryption (TDE) with customer-managed keys (Option A) protects data at rest by encrypting the database files and backups using a key stored in Azure Key Vault, giving the customer full control over key rotation and revocation. TDE with service-managed keys (Option C) also encrypts data at rest but uses a key managed by Azure, which is simpler but offers less control. Always Encrypted with secure enclaves (Option E) protects sensitive data at rest by encrypting columns with keys that are never revealed to the database engine, and the secure enclave allows computations on encrypted data, ensuring data remains encrypted even during processing.
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 24, 2026
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