DP-300 Plan and implement data platform resources Practice Question
You are configuring security for an Azure SQL Database that will be accessed by multiple applications. You need to implement a solution that allows applications to connect using their own managed identities without storing credentials in connection strings. What should you configure?
⚠ Common exam trap
Many exam-takers confuse authentication mechanisms (like Always Encrypted or firewall rules) with identity-based access control, mistakenly thinking they eliminate credential storage when they only address encryption or network filtering.
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
✓
Enable Microsoft Entra ID authentication and assign managed identities to the applications.
Microsoft Entra ID authentication allows Azure SQL Database to trust tokens issued by Entra ID for managed identities. By assigning a managed identity to each application, the application can acquire an access token from Azure Managed Identity endpoints and present it to the database without ever storing credentials in connection strings. This eliminates the need for passwords or connection string secrets.
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 Microsoft Entra ID authentication and assign managed identities to the applications.
Why this is correct
Microsoft Entra ID authentication lets each application present its own managed identity, so Azure SQL Database validates the token issued by the platform rather than a stored password. This satisfies the stem's requirement to avoid credentials in connection strings, since the identity's secret is managed and rotated by Azure outside application code.
- ✗
Use Always Encrypted with column master key in Azure Key Vault.
Why it's wrong here
Always Encrypted protects column data at rest and in transit from the database engine; it does not authenticate applications, so managed identities still cannot connect. It is tempting because it removes secrets from the database tier, and it would be correct if the requirement were to prevent administrators from reading sensitive columns.
- ✗
Configure firewall rules to allow application IP addresses.
Why it's wrong here
Firewall rules filter source IP addresses only; they carry no identity, so applications still supply credentials in connection strings. It is tempting because it restricts network access cheaply, and it would be correct if the requirement were to limit which networks may reach the logical server.
- ✗
Enable SQL Server authentication and create a login for each application.
Why it's wrong here
SQL authentication stores a password hash in the database and requires credentials in the connection string, directly contradicting the no-stored-credentials requirement. It is tempting because it is the traditional login model, and it would be correct for legacy applications that cannot use token-based authentication.
Go deeper
Related to this question
Learn chapter
Deploying and Configuring Azure SQL Managed Instance
Key term
Azure SQL Authentication
Azure SQL Authentication is the process of verifying a user's identity to access an Azure SQL database using either a username and password (SQL Authentication) or a Microsoft Entra ID (formerly Azure AD) identity.
Key term
Azure SQL Performance Tuning
Azure SQL Performance Tuning is the process of optimizing the speed and efficiency of queries and database operations in Microsoft Azure SQL Database or SQL Managed Instance to reduce latency and improve throughput.
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Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
This DP-300 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-300 exam.