A multinational organization with 5,000 users currently has Microsoft 365 E3 licenses. They need to meet a regulatory requirement that all user activity logs must be retained for 7 years. They also require the ability to place litigation holds on all mailboxes. Which licensing approach meets the compliance requirements at the lowest additional cost?
Answer choices
Why each option matters
Good practice is not just finding the correct option. The wrong answers often show the exact trap the exam wants you to fall into.
Distractor review
Upgrade all users to Microsoft 365 E5
This would meet all requirements but at a significantly higher cost per user compared to purchasing an add-on.
Best answer
Add Microsoft 365 E5 Compliance add-on for all users
This add-on provides advanced audit log retention (up to 10 years) and eDiscovery capabilities, including litigation hold, at a lower cost than upgrading to E5.
Distractor review
Add Microsoft 365 E5 eDiscovery and Audit add-on for all users
There is no specific 'eDiscovery and Audit' add-on; these features are part of the E5 Compliance add-on.
Distractor review
Add Microsoft 365 Communications Compliance add-on for all users
This add-on focuses on monitoring communications for compliance, not on audit log retention or litigation holds.
Common exam trap
Common exam trap: NAT rules depend on direction and matching traffic
NAT is not only about the public address. The inside/outside interface roles and the ACL or rule that matches traffic are just as important.
Technical deep dive
How to think about this question
NAT questions usually test address translation, overload/PAT behaviour, static mappings and whether the right traffic is being translated. Read the interface direction and address terms carefully.
KKey Concepts to Remember
- Static NAT maps one inside address to one outside address.
- PAT allows many inside hosts to share one public address using ports.
- Inside local and inside global describe the private and translated addresses.
- NAT ACLs identify traffic for translation, not always security filtering.
TExam Day Tips
- Identify inside and outside interfaces first.
- Check whether the scenario needs static NAT, dynamic NAT or PAT.
- Do not confuse NAT matching ACLs with normal packet-filtering intent.
Related practice questions
Related MS-900 practice-question pages
Use these pages to review the topic behind this question. This is how one missed question becomes focused revision.
More questions from this exam
Keep practising from the same exam bank, or move into a focused topic page if this question exposed a weak area.
Question 1
During requirements gathering, an IT manager says the organization must let users provision resources from a portal without provider interaction. Cloud concept or benefit best matches this requirement?
Question 2
A compliance-aware administrator is selecting the right Microsoft 365 capability to use Microsoft 365 and another public cloud provider for different workloads. Cloud concept or benefit best matches this requirement?
Question 3
While preparing a Microsoft 365 adoption plan, a consultant is asked to manage leads, opportunities, customer accounts, and sales processes. Microsoft 365 app or service is the best fit?
Question 4
A project manager needs to create a detailed project schedule with a Gantt chart view, task dependencies, critical path analysis, and milestones. The schedule must be shared with team members who can update their tasks, and the manager wants to track progress against a baseline. Which Microsoft 365 app is specifically designed for this type of project management?
Question 5
A project manager wants to schedule a meeting with team members to discuss project progress. They need to find a time that works for everyone based on their calendars. Which Microsoft 365 app should they use?
Question 6
A project manager wants to create a visual dashboard that tracks project tasks, deadlines, and progress. The dashboard should pull data from a Microsoft List and update in real time. Which Microsoft 365 app is best suited for building this interactive dashboard?
FAQ
Questions learners often ask
What does this MS-900 question test?
Static NAT maps one inside address to one outside address.
What is the correct answer to this question?
The correct answer is: Add Microsoft 365 E5 Compliance add-on for all users — Microsoft 365 E5 Compliance add-on provides advanced audit log retention up to 10 years and includes eDiscovery for litigation holds. Upgrading all users to E5 is more expensive. The E5 Compliance add-on is the most cost-efficient way to add these capabilities for E3 users. The other options are not valid add-on names or do not provide the required features.
What should I do if I get this MS-900 question wrong?
Then try more questions from the same exam bank and focus on understanding why the wrong options are tempting.
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