Quick Answer
The answer is Always Encrypted. This is the correct feature for encrypting a column like 'SSN' in Azure SQL Database with customer-managed keys because it performs client-side encryption, meaning the encryption keys stored in Azure Key Vault are never revealed to the database engine, preventing even database administrators from reading the plaintext data. On the Microsoft Azure Data Fundamentals DP-900 exam, this question tests your understanding of column-level security features versus other options like Transparent Data Encryption, which encrypts the entire database at rest but does not protect data from the database engine itself. A common trap is confusing Always Encrypted with Dynamic Data Masking, which only hides data from non-privileged users rather than encrypting it. Remember the memory tip: "Always Encrypted keeps keys client-side, so the database never sees the plaintext inside."
This DP-900 practice question tests your understanding of describe core data concepts. The scenario asks you to isolate a root cause — eliminate options that address a different problem before choosing. 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.
Your company stores sensitive customer data in Azure SQL Database. You need to implement column-level encryption for the 'SSN' column using a customer-managed key stored in Azure Key Vault. Which feature should you use?
Azure Policy
Why wrong: Azure Policy is for compliance and governance, not encryption.
Always Encrypted
Always Encrypted provides column-level encryption with customer-managed keys.
Transparent Data Encryption (TDE)
Why wrong: TDE encrypts the database at rest, not at the column level.
Dynamic Data Masking
Why wrong: Dynamic Data Masking obfuscates data but does not encrypt it.
Answer choices
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
Always Encrypted
Always Encrypted is the correct feature because it allows client-side encryption of sensitive columns, such as 'SSN', using a customer-managed key stored in Azure Key Vault. The encryption keys are never exposed to the database engine, ensuring that even database administrators cannot view the plaintext data. This meets the requirement for column-level encryption with customer-managed keys.
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.
Azure Policy
Why it's wrong here
Azure Policy is for compliance and governance, not encryption.
Always Encrypted
Why this is correct
Always Encrypted provides column-level encryption with customer-managed keys.
Related concept
Read the scenario before looking for a memorised answer.
Transparent Data Encryption (TDE)
Why it's wrong here
TDE encrypts the database at rest, not at the column level.
Dynamic Data Masking
Why it's wrong here
Dynamic Data Masking obfuscates data but does not encrypt it.
Common exam traps
The trap here is that candidates often confuse Transparent Data Encryption (TDE) with column-level encryption, but TDE only protects data at rest and does not prevent database administrators or the cloud provider from reading the data in memory or during queries.
Detailed technical explanation
Always Encrypted uses two types of keys: a column encryption key (CEK) that encrypts the column data, and a column master key (CMK) that encrypts the CEK. The CMK can be stored in Azure Key Vault, Windows Certificate Store, or a hardware security module (HSM). The encryption and decryption occur on the client side via the ADO.NET driver, meaning the SQL Database engine never sees the plaintext values, which is critical for scenarios where the DBA or cloud provider must be prevented from accessing sensitive data like SSNs.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
A cloud solutions architect for a retail company is evaluating services for a new workload. The correct answer here reflects best practice for the specific scenario described — not a general cloud recommendation. Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option. Cloud exam questions reward reading the constraint carefully: the same technology can be right or wrong depending on the use case.
What to study next
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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: Always Encrypted — Always Encrypted is the correct feature because it allows client-side encryption of sensitive columns, such as 'SSN', using a customer-managed key stored in Azure Key Vault. The encryption keys are never exposed to the database engine, ensuring that even database administrators cannot view the plaintext data. This meets the requirement for column-level encryption with customer-managed keys.
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
Read the scenario before looking for a memorised answer.
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Last reviewed: Jun 24, 2026
This DP-900 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-900 exam.
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