Quick Answer
The answer is the Cool tier. This is correct because Cool tier is specifically designed for infrequently accessed data that must still be available within seconds to a few hours, making it ideal for your compliance scenario where transaction records are rarely touched after the first month but must be retrievable within 24 hours for an audit. On the Microsoft Azure Data Fundamentals DP-900 exam, this question tests your understanding of storage tier trade-offs: Hot tier is for frequent access but costs more, while Archive tier has the lowest storage cost but imposes a retrieval delay of up to 15 hours, which violates the 24-hour audit requirement. A common trap is choosing Archive for its low cost, forgetting the retrieval latency. Remember the memory tip: “Cool for compliance, Archive for archives” — if you need data back within a day, choose Cool.
This DP-900 practice question tests your understanding of describe core data concepts. 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.
A financial services company needs to store transaction records for 7 years to comply with regulatory requirements. The data is rarely accessed after the first month but must be available for audit within 24 hours. The storage solution must minimize cost while meeting compliance. Which Azure storage tier should you use for data older than one month?
Clue words in this question
Noticing these words before you look at the options changes how you read each choice.
Clue: "first"
Why it matters: Order matters here. You are being tested on which action comes before the others — not which action is generally useful.
Clue: "minimum / minimize"
Why it matters: Asks for the least resource use — fewest addresses, smallest subnet, lowest overhead. Eliminate over-provisioned options even if they would technically work.
Cool tier
Low storage cost and retrieval within minutes, fitting the 24-hour requirement.
Premium tier
Why wrong: High cost, designed for low-latency access, not archival.
Archive tier
Why wrong: Retrieval time up to 15 hours, may exceed 24-hour requirement.
Hot tier
Why wrong: Too expensive for data rarely accessed after a month.
Answer choices
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
Cool tier
The Cool tier is designed for data that is infrequently accessed but must be available quickly when needed, with a 30-day minimum storage duration and lower storage cost than Hot tier. Since the data is rarely accessed after the first month but must be retrievable within 24 hours for audits, Cool tier meets both the cost and availability requirements without the higher cost of Hot tier or the retrieval delay of Archive tier.
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.
Cool tier
Why this is correct
Low storage cost and retrieval within minutes, fitting the 24-hour requirement.
Clue confirmation
The clue words "first", "minimum / minimize" in the question point toward this answer.
Related concept
Read the scenario before looking for a memorised answer.
Premium tier
Why it's wrong here
High cost, designed for low-latency access, not archival.
Archive tier
Why it's wrong here
Retrieval time up to 15 hours, may exceed 24-hour requirement.
Hot tier
Why it's wrong here
Too expensive for data rarely accessed after a month.
Common exam traps
The trap here is that candidates often confuse 'rarely accessed' with 'archival' and choose Archive tier, overlooking the specific 24-hour retrieval requirement and the 180-day minimum storage duration that would cause early deletion charges for a 7-year retention policy.
Detailed technical explanation
Azure Blob Storage access tiers use a pricing model where Cool tier has lower storage cost but higher access cost (per GB read) compared to Hot tier, making it ideal for data with low access frequency but occasional retrieval needs. The 24-hour availability requirement is easily met because Cool tier data is always online and can be read immediately, unlike Archive tier which requires a rehydration operation (changing blob tier to Cool or Hot) that can take up to 15 hours. In practice, financial auditors often request data within a business day, and Cool tier ensures compliance without the latency risk of Archive tier.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
A startup's cloud architect reviews their monthly bill and notices costs are higher than expected for a long-running batch job. Switching from on-demand instances to Reserved Instances — or using Spot/Preemptible VMs — can reduce compute costs by up to 72 %. Questions like this test whether you understand the tradeoffs between commitment, flexibility, and cost across cloud pricing models.
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
Describe core data concepts — This question tests Describe core data concepts — Read the scenario before looking for a memorised answer..
The correct answer is: Cool tier — The Cool tier is designed for data that is infrequently accessed but must be available quickly when needed, with a 30-day minimum storage duration and lower storage cost than Hot tier. Since the data is rarely accessed after the first month but must be retrievable within 24 hours for audits, Cool tier meets both the cost and availability requirements without the higher cost of Hot tier or the retrieval delay of Archive tier.
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
Yes — watch for: "first", "minimum / minimize". Order matters here. You are being tested on which action comes before the others — not which action is generally useful.
Read the scenario before looking for a memorised answer.
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Last reviewed: Jun 24, 2026
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