This MS-900 practice question tests your understanding of describe microsoft 365 apps and services. Match the stated requirement to the specific cloud service, access model, or configuration option — many options are valid in isolation but not for this scenario. 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.
An organization needs to securely store and manage user identities for Microsoft 365. Which Microsoft service should they use?
Microsoft Entra ID
Microsoft Entra ID is the identity and access management service for Microsoft 365.
Microsoft Purview
Why wrong: Microsoft Purview is for data governance.
Microsoft Defender for Cloud Apps
Why wrong: Microsoft Defender for Cloud Apps is a cloud access security broker.
Microsoft Intune
Why wrong: Microsoft Intune is for device management.
Answer choices
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
Microsoft Entra ID
Microsoft Entra ID (formerly Azure AD) is the correct choice because it is Microsoft's cloud-based identity and access management service, specifically designed to store and manage user identities for Microsoft 365. It provides authentication, single sign-on (SSO), and conditional access policies, ensuring secure access to Microsoft 365 resources. Other options focus on data protection, security monitoring, or device management, not identity storage.
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.
Microsoft Entra ID
Why this is correct
Microsoft Entra ID is the identity and access management service for Microsoft 365.
Related concept
Read the scenario before looking for a memorised answer.
Microsoft Purview
Why it's wrong here
Microsoft Purview is for data governance.
Microsoft Defender for Cloud Apps
Why it's wrong here
Microsoft Defender for Cloud Apps is a cloud access security broker.
Microsoft Intune
Why it's wrong here
Microsoft Intune is for device management.
Common exam traps
The trap here is that candidates often confuse Microsoft Purview (data compliance) or Defender for Cloud Apps (security monitoring) with identity management, but only Microsoft Entra ID provides the core directory service for storing and authenticating user identities in Microsoft 365.
Detailed technical explanation
Microsoft Entra ID uses OAuth 2.0, OpenID Connect, and SAML 2.0 protocols for authentication and authorization, integrating with on-premises Active Directory via Azure AD Connect for hybrid identity scenarios. Under the hood, it stores identity objects in a multi-tenant, globally distributed directory service, supporting features like password hash sync, pass-through authentication, and federation. A real-world scenario is an organization using Entra ID to enforce multi-factor authentication (MFA) for all Microsoft 365 logins, which relies on the identity store to validate user credentials and apply conditional access policies.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
A media company stores terabytes of video archives that are accessed once a year for audit purposes. Moving these objects to a cold storage tier (Azure Archive, S3 Glacier, or Google Nearline) costs a fraction of hot storage. Questions like this test whether you understand storage tiers, access frequency tradeoffs, and retrieval latency requirements.
What to study next
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FAQ
Describe Microsoft 365 apps and services — This question tests Describe Microsoft 365 apps and services — Read the scenario before looking for a memorised answer..
The correct answer is: Microsoft Entra ID — Microsoft Entra ID (formerly Azure AD) is the correct choice because it is Microsoft's cloud-based identity and access management service, specifically designed to store and manage user identities for Microsoft 365. It provides authentication, single sign-on (SSO), and conditional access policies, ensuring secure access to Microsoft 365 resources. Other options focus on data protection, security monitoring, or device management, not identity storage.
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
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