DP-300 Implement a secure environment Practice Question
You are the DBA for a company using Azure SQL Database. The security team requires that all data at rest in the database be encrypted with a customer-managed key (CMK) stored in Azure Key Vault, and that the DBA team be able to rotate the key without any downtime. You have already created an Azure Key Vault and an RSA 2048-bit key. What should you do next to meet these requirements?
⚠ Common exam trap
It's easy for candidates to confuse Always Encrypted with TDE; Always Encrypted protects specific columns, not the entire database at rest.
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
✓
In the Azure SQL logical server's Transparent Data Encryption settings, select Customer-managed key and choose the Key Vault key.
Configuring Transparent Data Encryption (TDE) with a customer-managed key in Azure Key Vault is the correct approach. TDE encrypts the database, backups, and logs at rest. Using a customer-managed key gives the organization control over the key and allows key rotation without downtime. The other options either do not provide customer-managed keys or are not applicable to 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.
- ✗
Enable Always Encrypted with a column master key stored in Azure Key Vault.
Why it's wrong here
Always Encrypted protects data in use and in transit for specific columns, but it does not encrypt the entire database at rest. TDE is the feature that encrypts data at rest. Always Encrypted would require schema changes and client-side configuration, and it does not fulfill the requirement for full database encryption with a customer-managed key.
- ✗
Enable Transparent Data Encryption (TDE) with a service-managed key, then export the key to Azure Key Vault.
Why it's wrong here
TDE with a service-managed key does not allow customer control over the key, and you cannot export the service-managed key to Key Vault. This option fails because the requirement is for a customer-managed key. Additionally, rotating a service-managed key is not possible by the customer. This approach would not satisfy the security team's mandate.
- ✗
Configure Azure Disk Encryption on the underlying virtual hard disks of the Azure SQL Database.
Why it's wrong here
Azure SQL Database is a platform as a service (PaaS) offering, and you do not have access to the underlying virtual hard disks. Azure Disk Encryption is used for infrastructure as a service (IaaS) virtual machines, not for Azure SQL Database. This option is not applicable and would not meet the encryption requirement.
- ✓
In the Azure SQL logical server's Transparent Data Encryption settings, select Customer-managed key and choose the Key Vault key.
Why this is correct
Azure SQL Database supports TDE with customer-managed keys stored in Azure Key Vault. By configuring the logical server's TDE settings to use a customer-managed key, you enable encryption at rest with your own key. Key rotation is supported by creating a new key version in Key Vault and updating the server configuration, with no downtime. This meets all requirements.
Quick reference
Asymmetric Encryption Algorithm Comparison
| Algorithm | Key Exchange | Signatures | Equivalent Security Key | Notes |
|---|---|---|---|---|
| RSA-3072 | Yes | Yes | 128-bit | Widely deployed; slow for bulk data |
| ECDSA P-256 | No | Yes | 128-bit | Fast signatures; standard TLS certs |
| ECDH / ECDHE | Yes | No | 128-bit | Perfect forward secrecy in TLS 1.3 |
| DH / DHE | Yes | No | 128-bit (3072-bit key) | Replaced by ECDHE in modern TLS |
| Ed25519 | No | Yes | ~128-bit | SSH keys, modern PKI |
Go deeper
Related to this question
Learn chapter
Overview of Azure Data Platform Options
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.
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.
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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.