DP-300 Plan and implement data platform resources Practice Question
You are deploying an Azure SQL Managed Instance for a sensitive healthcare application. The compliance requirement mandates that all data at rest be encrypted using a customer-managed key stored in Azure Key Vault. The key must be automatically rotated every 90 days. Which configuration should you implement?
⚠ Common exam trap
Candidates often confuse Always Encrypted (column-level encryption with client-side key management) with TDE (database-level encryption at rest), and assume automatic key rotation applies to Always Encrypted, whereas Azure Key Vault's automatic rotation only applies to TDE protectors, not Always Encrypted column master keys.
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 Transparent Data Encryption (TDE) with a customer-managed key in Azure Key Vault and set a key rotation policy.
Transparent Data Encryption (TDE) with a customer-managed key (CMK) stored in Azure Key Vault is the correct choice because it encrypts the entire database at rest using a key that the customer controls and rotates. Azure SQL Managed Instance supports TDE with CMK, and you can configure automatic key rotation by setting a key rotation policy in Azure Key Vault (e.g., every 90 days). This satisfies the compliance requirement for customer-managed encryption and automated rotation.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Use dynamic data masking with a masking function that encrypts sensitive data.
Why it's wrong here
Dynamic data masking obscures data from non-privileged users but does not encrypt data at rest.
- ✗
Implement row-level security to restrict access to sensitive data.
Why it's wrong here
Row-level security controls access but does not encrypt data.
- ✓
Enable Transparent Data Encryption (TDE) with a customer-managed key in Azure Key Vault and set a key rotation policy.
Why this is correct
TDE with customer-managed keys supports automatic rotation via Azure Key Vault.
- ✗
Enable Always Encrypted with column master key stored in Azure Key Vault and configure automatic key rotation.
Why it's wrong here
Always Encrypted does not support automatic rotation of the column master key; rotation is manual.
Go deeper
Related to this question
Learn chapter
Overview of Azure Data Platform Options
Key term
Transparent Data Encryption
Transparent Data Encryption is a security feature that automatically encrypts data written to a database and decrypts it when read, without requiring any changes to the application.
Key term
Azure SQL Managed Instance
Azure SQL Managed Instance is a fully managed cloud database service that gives you nearly all the features of Microsoft SQL Server on your own server, without you having to manage the hardware or operating system.
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JA
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.