- A
Microsoft Defender for Cloud Apps
Correct. Defender for Cloud Apps is the CASB solution that provides monitoring and control over SaaS applications and shadow IT.
- B
Microsoft Defender for Microsoft 365 Plan 2
Why wrong: Incorrect. This add-on focuses on advanced threat protection for email and collaboration, not on monitoring shadow IT.
- C
Microsoft Entra ID Premium P2
Why wrong: Incorrect. Microsoft Entra ID P2 provides identity protection and privileged identity management, but not CASB capabilities.
- D
Microsoft 365 E5 Compliance
Why wrong: Incorrect. E5 Compliance includes advanced compliance features like e-discovery and retention, but not cloud access security.
MS-900 Describe Microsoft 365 pricing and support Practice Question
This MS-900 practice question tests your understanding of describe microsoft 365 pricing and support. Read the scenario carefully and evaluate each option against the stated constraints before committing to an answer. 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 company with 100 Microsoft 365 E3 users needs to add cloud access security broker capabilities to monitor and control user access to SaaS applications and shadow IT. They want the most cost-effective add-on. What should they purchase?
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
Microsoft Defender for Cloud Apps
Microsoft Defender for Cloud Apps is a Cloud Access Security Broker (CASB) that provides visibility into shadow IT, controls over user access to SaaS applications, and data protection policies. It is the most cost-effective add-on for this specific requirement because it can be licensed standalone without requiring higher-tier Microsoft 365 or Entra ID plans, and it directly addresses the need to monitor and control SaaS app usage.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
Microsoft Defender for Cloud Apps
Why this is correct
Correct. Defender for Cloud Apps is the CASB solution that provides monitoring and control over SaaS applications and shadow IT.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
Microsoft Defender for Microsoft 365 Plan 2
Why it's wrong here
Incorrect. This add-on focuses on advanced threat protection for email and collaboration, not on monitoring shadow IT.
- ✗
Microsoft Entra ID Premium P2
Why it's wrong here
Incorrect. Microsoft Entra ID P2 provides identity protection and privileged identity management, but not CASB capabilities.
- ✗
Microsoft 365 E5 Compliance
Why it's wrong here
Incorrect. E5 Compliance includes advanced compliance features like e-discovery and retention, but not cloud access security.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often confuse Microsoft Defender for Cloud Apps with Microsoft Defender for Microsoft 365 Plan 2, assuming the latter is required for CASB functionality, when in fact the standalone Defender for Cloud Apps license provides the same CASB capabilities at a lower cost.
Detailed technical explanation
How to think about this question
Defender for Cloud Apps uses a proxy architecture (either forward proxy via log collection or reverse proxy via app connectors) to inspect traffic to over 30,000 SaaS apps. It can enforce session policies using conditional access app control, which integrates with Azure AD to apply real-time controls like blocking downloads or requiring data encryption. In a real-world scenario, an organization could deploy the Defender for Cloud Apps log collector to ingest firewall logs and identify unsanctioned apps like personal Dropbox accounts, then block them via a policy without needing any additional Microsoft 365 licensing.
KKey Concepts to Remember
- Read the scenario before looking for a memorised answer.
- Find the constraint that changes the correct option.
- Eliminate answers that are true in general but not in this case.
TExam Day Tips
- Watch for words such as best, first, most likely and least administrative effort.
- Review why wrong options are wrong, not only why the correct option is correct.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
How this comes up in practice
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
Got this wrong? Here's your next step.
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FAQ
Questions learners often ask
What does this MS-900 question test?
Describe Microsoft 365 pricing and support — This question tests Describe Microsoft 365 pricing and support — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Microsoft Defender for Cloud Apps — Microsoft Defender for Cloud Apps is a Cloud Access Security Broker (CASB) that provides visibility into shadow IT, controls over user access to SaaS applications, and data protection policies. It is the most cost-effective add-on for this specific requirement because it can be licensed standalone without requiring higher-tier Microsoft 365 or Entra ID plans, and it directly addresses the need to monitor and control SaaS app usage.
What should I do if I get this MS-900 question wrong?
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
What is the key concept behind this question?
Read the scenario before looking for a memorised answer.
About these practice questions
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Last reviewed: Jun 11, 2026
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