DP-300 Implement a secure environment Practice Question
You are the database administrator for a company that uses Azure SQL Database. The security team requires that all data at rest be encrypted with a customer-managed key (CMK) stored in Azure Key Vault, rather than the default service-managed key. You need to implement this requirement with the least administrative overhead. What should you do?
⚠ Common exam trap
The trap here is assuming that Always Encrypted or a database master key provides data-at-rest encryption for the entire database, when only TDE with a customer-managed key does so at the server level.
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 by configuring the Azure SQL logical server to use a key from Azure Key Vault.
TDE with a customer-managed key at the logical server level is the correct approach because it applies to all databases on the server and uses Azure Key Vault for key storage, satisfying the security team's requirement for customer-managed keys. The other options either do not provide full database encryption, require per-column configuration, or apply to services outside Azure SQL Database.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Create a database master key (DMK) in each user database and encrypt it with a password.
Why it's wrong here
A database master key is used to protect certificates and asymmetric keys inside a database, not to encrypt the entire database at rest. It does not provide TDE with a customer-managed key, and managing DMKs per database adds administrative work without satisfying the requirement.
- ✓
Enable Transparent Data Encryption (TDE) with a customer-managed key by configuring the Azure SQL logical server to use a key from Azure Key Vault.
Why this is correct
Configuring TDE with a customer-managed key at the logical server level enables Bring Your Own Key (BYOK) for all databases on that server. The server's managed identity accesses the key in Azure Key Vault, so no per-database key management is needed, meeting the requirement with minimal overhead.
- ✗
Enable Always Encrypted with a column master key stored in Azure Key Vault for all columns in every table.
Why it's wrong here
Always Encrypted protects individual columns and requires client-side changes and column-level configuration. It is not a data-at-rest encryption mechanism for the whole database and would be impractical for all columns. It does not meet the requirement for TDE with a customer-managed key.
- ✗
Configure Azure Storage Service Encryption (SSE) with a customer-managed key on the storage account that hosts the database files.
Why it's wrong here
Azure SQL Database manages its own storage; you cannot apply Azure Storage Service Encryption settings to the underlying files. SSE applies to Azure Storage accounts, not to the SQL Database service, so it cannot be used to implement customer-managed TDE keys for Azure SQL Database.
Go deeper
Related to this question
Learn chapter
Migrating On-Premises Databases to Azure
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 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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JA
Written and reviewed by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
Last reviewed September 2026 · checked against the official Microsoft exam blueprint
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.