MS-900 Describe cloud concepts Practice Question
A retail company is evaluating Microsoft 365 for a new subsidiary. Management wants to understand which characteristics are fundamental to cloud computing as described by the National Institute of Standards and Technology (NIST). Which two characteristics should the company include? (Choose two.)
⚠ Common exam trap
The trap here is mixing commercial licensing terms or hosting models into the NIST essential characteristics of cloud computing.
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
✓
On-demand self-service
NIST defines five essential cloud characteristics: on-demand self-service, broad network access, resource pooling, rapid elasticity, and measured service. On-demand self-service and broad network access are both on that list. Dedicated hardware per tenant, unlimited free storage, and mandatory multi-year contracts are commercial or hosting concepts that are not part of the NIST definition, so they should not be included.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Mandatory multi-year contracts
Why it's wrong here
Contract length is a commercial term, not a NIST cloud characteristic. NIST describes on-demand self-service, broad network access, resource pooling, rapid elasticity, and measured service. Many cloud services, including Microsoft 365, offer monthly or annual commitments. Treating a multi-year contract as fundamental confuses licensing practice with the technical definition of cloud computing.
- ✓
On-demand self-service
Why this is correct
On-demand self-service means consumers can provision computing capabilities, such as services and storage, automatically without requiring human interaction with the provider. NIST lists this as an essential cloud characteristic. For the retail subsidiary, this means administrators can enable Microsoft 365 services themselves rather than waiting for manual provider provisioning, matching the NIST definition.
- ✗
Dedicated physical hardware per tenant
Why it's wrong here
Dedicated physical hardware per tenant describes a single-tenant hosting model, which is not a NIST essential characteristic. NIST instead identifies resource pooling, where providers serve multiple consumers using a multi-tenant model. Microsoft 365 shares infrastructure across tenants with logical isolation. Requiring dedicated hardware per tenant contradicts the pooled-resource characteristic and is not part of the NIST definition.
- ✓
Broad network access
Why this is correct
Broad network access means capabilities are available over the network through standard mechanisms and accessed by heterogeneous client platforms such as laptops, tablets, and phones. NIST includes this as an essential characteristic. The retail subsidiary's staff can reach Microsoft 365 from varied devices and locations, which aligns with broad network access in the NIST cloud model.
- ✗
Unlimited storage at no cost
Why it's wrong here
Unlimited free storage is a marketing concept, not a NIST essential characteristic. NIST characteristics include measured service, where usage is monitored and billed, so storage is metered and priced rather than unlimited and free. Microsoft 365 plans have defined mailbox and storage limits. Selecting this option misstates the NIST definition and the commercial reality of cloud services.
Go deeper
Related to this question
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Windows 365 Cloud PC
Key term
Tenant
A dedicated and isolated instance of Microsoft Entra ID that an organization receives when signing up for a Microsoft cloud service.
Key term
Microsoft 365
Microsoft 365 is a subscription-based cloud service from Microsoft that combines productivity tools like Office apps with security, device management, and online storage.
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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
This MS-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 MS-900 exam.