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SC-100 Practice Question: A company uses Azure App Service to host a web…

A company uses Azure App Service to host a web application that stores sensitive data in Azure SQL Database. The security team requires that data at rest in the database be encrypted using a customer-managed key stored in Azure Key Vault. The key must be rotated automatically every 90 days. What is the recommended approach to meet these requirements?

⚠ Common exam trap

Many exam-takers confuse data-at-rest encryption (TDE) with column-level encryption (Always Encrypted or cell-level encryption), leading candidates to pick options that encrypt only specific columns or require application changes, rather than the simpler, database-wide TDE approach with automatic key rotation in Key Vault.

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

Enable TDE with customer-managed keys in Azure Key Vault and set a key rotation policy in Key Vault to rotate the key every 90 days.

Transparent Data Encryption (TDE) with customer-managed keys (CMK) in Azure Key Vault meets the requirement for encrypting data at rest in Azure SQL Database using a key controlled by the customer. Azure Key Vault supports automatic key rotation policies that can be set to rotate the key every 90 days, satisfying the rotation requirement without manual intervention or application code changes.

Answer analysis

Option-by-option breakdown

For each option: why learners choose it and why it is or isn't the right answer here.

  • Encrypt sensitive columns using cell-level encryption with keys stored in Azure Key Vault and rotate keys manually every 90 days.

    Why it's wrong here

    Cell-level encryption with keys stored in Azure Key Vault and manual 90-day rotation is operationally heavy and error-prone: each rotation requires re-encrypting the column data, updating key versions in the application configuration, and coordinating with a change window. Unlike TDE with customer-managed keys, there is no built-in automatic rotation schedule in Azure Key Vault for cell-level schemes, so the rotation is driven entirely by custom scripts or manual processes. This approach also adds application complexity because encryption/decryption must be explicitly handled at the field level, and it does not scale well across multiple tables or environments.

  • Enable Transparent Data Encryption (TDE) with service-managed keys in Azure SQL Database.

    Why it's wrong here

    Transparent Data Encryption with service-managed keys is technically automatic, but the rotation is controlled entirely by Microsoft and cannot be aligned to a specific 90-day compliance policy. Service-managed keys are rotated on Azure's own schedule, which customers cannot view, modify, or trigger on demand. This lack of customer control means an organization cannot prove to an auditor that keys are rotated exactly every 90 days, making this option unsuitable when a fixed rotation cadence is a hard requirement.

  • Enable TDE with customer-managed keys in Azure Key Vault and set a key rotation policy in Key Vault to rotate the key every 90 days.

    Why this is correct

    Enabling TDE with customer-managed keys in Azure Key Vault is the correct choice because it gives the organization explicit control over the key lifecycle while keeping encryption transparent to the application. You can configure a Key Vault key rotation policy to automatically rotate the TDE protector every 90 days, and Azure SQL Database will automatically use the new key version for new encryption operations without downtime or application changes. This satisfies the rotation requirement with a fully managed, auditable process that is aligned to Azure's native capabilities.

  • Use Always Encrypted with column master keys stored in Azure Key Vault and configure key rotation in the application code.

    Why it's wrong here

    Always Encrypted with column master keys stored in Azure Key Vault encrypts data client-side, meaning the application must be designed to handle the encryption and decryption at every query. Configuring key rotation in application code is not automatic; it requires custom logic to create a new key version, update the column master key metadata, and potentially re-encrypt the column data. This introduces significant development and maintenance overhead, and unlike TDE with customer-managed keys, there is no built-in Azure policy that performs the rotation on a schedule without code changes.

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JA

Written by Johnson Ajibi, MSc IT Security

Senior Network & Security Engineer · founder of Courseiva

This SC-100 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 SC-100 exam.