DP-900 Practice Question: Identify considerations for relational data on Azure
An organization stores sensitive customer data in Azure SQL Database. They need to encrypt the data at rest and ensure that only authorized applications can decrypt it. Which combination of features should they implement?
⚠ Common exam trap
DP-900 often tests the misconception that Dynamic Data Masking or Row-Level Security provides encryption — candidates confuse 'hiding data in results' with 'encrypting data at rest' and pick the masking option.
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
✓
Transparent Data Encryption (TDE) and Always Encrypted
Transparent Data Encryption (TDE) encrypts the database, backups, and logs at rest at the storage layer, protecting against physical media theft. Always Encrypted goes further by encrypting specific columns client-side so that even DBAs and the SQL engine cannot see plaintext — only authorized client applications holding the column encryption keys can decrypt. Together they satisfy both 'encrypt at rest' and 'only authorized applications can decrypt'.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Row-Level Security (RLS) and Transparent Data Encryption (TDE)
Why it's wrong here
Row-Level Security (RLS) restricts which rows a query returns by evaluating a security predicate against the current user or session, so it governs read access but performs no cryptographic transformation of the data. TDE encrypts the database files, backups, and logs at rest, yet decryption is done automatically by the SQL Server engine for any connection that has database permissions. Thus, although TDE protects physical file theft, RLS does nothing to encrypt the sensitive data or to limit decryption by authorized applications, so the combination fails to meet a requirement for all-layer encryption.
- ✗
Azure SQL Database Auditing and Transparent Data Encryption (TDE)
Why it's wrong here
Azure SQL Database Auditing is a detective control that records schema changes and data access attempts in an audit log, but it cannot prevent an application that authenticates successfully from reading clear text. TDE provides at-rest encryption of storage and backup files, but the database engine transparently decrypts data on every valid query; therefore an application with legitimate credentials sees plaintext values in normal operations. This pairing monitors activity and protects files but offers no client-side or in-transit encryption control, so sensitive customer data remains exposed to malicious code running inside a compromised application.
- ✓
Transparent Data Encryption (TDE) and Always Encrypted
Why this is correct
TDE encrypts the underlying database file, transaction log, and backups so data at rest cannot be read if the physical media is stolen, but it does not protect data from users who have valid access to the database. Always Encrypted elevates protection by keeping encryption keys entirely on the client side, so for selected columns SQL Server only stores and processes ciphertext; only the authorized client application can decrypt the values, and even high-privilege database admins cannot see the plaintext. Together, TDE secures the entire database at rest while Always Encrypted provides column-level confidentiality and controlled decryption by the application, making this the correct pair for end-to-end encryption of sensitive customer data.
- ✗
Dynamic Data Masking and Always Encrypted
Why it's wrong here
Dynamic Data Masking obfuscates column values in query results for non-privileged users, but the data is still stored unencrypted and masking rules can be bypassed by elevated database roles or by querying other paths. Always Encrypted does protect selected columns by keeping encryption keys off the server, but it only encrypts the columns explicitly configured with a column encryption key. Because this combination leaves the rest of the database without at-rest encryption and DDM adds no cryptographic protection, the solution does not match the thorough coverage provided by TDE combined with Always Encrypted.
Go deeper
Related to this question
Learn chapter
Database Normalization (1NF, 2NF, 3NF)
Key term
Azure SQL Database
Azure SQL Database is a fully managed relational database-as-a-service (DBaaS) in Microsoft Azure, based on the SQL Server engine, that handles scaling, backups, patching, and high availability automatically.
Key term
Column
A column is a vertical set of values in a database table that stores one specific type of attribute for every row.
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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
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