The answer is to join the virtual machine to an Azure AD Domain Services domain and configure the application to use Azure AD Kerberos authentication. This solution enables Windows Integrated Authentication without storing credentials because Azure SQL Managed Instance supports Azure AD authentication natively, and Azure AD Kerberos allows the VM to obtain Kerberos tickets from Azure AD DS, eliminating the need for credential storage or Key Vault. On the Microsoft Cybersecurity Architect exam, this scenario tests your understanding of hybrid identity and authentication flows for legacy applications migrating to Azure, often appearing as a trap where candidates mistakenly choose SQL authentication or service principals—both of which either require stored credentials or lack Kerberos compatibility. The key insight is that Azure AD DS acts as a domain controller for the VM, enabling seamless Kerberos delegation to the managed instance. Memory tip: think “Join, don’t stash”—join the VM to a domain, not stash credentials in a vault.
SC-100 Practice Question: Design security solutions for applications and data
This SC-100 practice question tests your understanding of design security solutions for applications and data. 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.
A company is migrating a legacy on-premises application to Azure. The application currently uses Windows Integrated Authentication (Kerberos) and requires access to a SQL Server database on the same network. In Azure, the application will run on Azure Virtual Machines and the database will be migrated to Azure SQL Managed Instance. You need to ensure the application can authenticate to the database without storing credentials. What should you implement?
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Join the virtual machine to an Azure AD Domain Services domain and configure the application to use Azure AD Kerberos authentication.
Azure SQL Managed Instance supports Azure AD authentication. By joining the VM to an Azure AD Domain Services domain and using Azure AD Kerberos authentication, the application can use Windows Integrated Authentication to connect to the managed instance without storing credentials. Option D is correct. Key Vault is unnecessary. SQL authentication requires credentials. Service principal is not compatible with Kerberos.
Key principle: NAT direction and interface roles matter as much as the IP address mapping. Inside/outside designation controls which traffic is translated.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
✗
Store the database credentials in Azure Key Vault and retrieve them at runtime.
Why it's wrong here
This still requires managing credentials; the goal is no stored credentials.
✗
Use SQL authentication with a contained database user.
Why it's wrong here
SQL authentication requires a password stored in the connection string.
✓
Join the virtual machine to an Azure AD Domain Services domain and configure the application to use Azure AD Kerberos authentication.
Why this is correct
This enables Windows Integrated Authentication to Azure SQL Managed Instance without credentials.
Related concept
Static NAT maps one inside address to one outside address.
✗
Create a service principal in Azure AD and grant it access to the database.
Why it's wrong here
Service principal authentication does not support Kerberos/Windows Integrated Authentication.
Common exam traps
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.
Detailed technical explanation
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.
Key takeaway
NAT direction and interface roles matter as much as the IP address mapping. Inside/outside designation controls which traffic is translated.
Real-world example
How this comes up in practice
A company's IT admin needs to give a contractor read-only access to production logs without sharing account credentials. Using role-based access control (RBAC) and temporary scoped permissions — not a permanent shared password — is the correct pattern. Questions like this test whether you can apply least-privilege access across cloud identity services.
Related glossary terms
Concepts from this question explained
These glossary pages explain the core terms tested in this SC-100 question in full detail.
Review the four NAT address types (inside local, inside global, outside local, outside global), PAT port overload, and static vs dynamic NAT use cases. Then practise related SC-100 NAT questions on configuration and troubleshooting.
Design security solutions for applications and data — This question tests Design security solutions for applications and data — Static NAT maps one inside address to one outside address..
What is the correct answer to this question?
The correct answer is: Join the virtual machine to an Azure AD Domain Services domain and configure the application to use Azure AD Kerberos authentication. — Azure SQL Managed Instance supports Azure AD authentication. By joining the VM to an Azure AD Domain Services domain and using Azure AD Kerberos authentication, the application can use Windows Integrated Authentication to connect to the managed instance without storing credentials. Option D is correct. Key Vault is unnecessary. SQL authentication requires credentials. Service principal is not compatible with Kerberos.
What should I do if I get this SC-100 question wrong?
Review the four NAT address types (inside local, inside global, outside local, outside global), PAT port overload, and static vs dynamic NAT use cases. Then practise related SC-100 NAT questions on configuration and troubleshooting.
What is the key concept behind this question?
Static NAT maps one inside address to one outside address.
About these practice questions
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These questions test the same concept from different angles. Work through them to make sure you can recognise it however the exam phrases it.
Variation 1. Your company develops a web application hosted on Azure App Service. The application uses Azure SQL Database and requires managed identities to access the database. You need to ensure that the application can authenticate to Azure SQL without storing credentials in code. Which authentication method should you implement?
medium
A.Store a client certificate in Azure Key Vault and reference it from the app.
B.Use an Azure AD service principal with a client secret.
C.Use Azure SQL database-level firewall rules with a static IP restriction.
✓ D.Enable system-assigned managed identity on the App Service and grant it access to the SQL database.
Why D: Option B is correct because system-assigned managed identity is the simplest and most secure way for an Azure App Service to authenticate to Azure SQL without credential storage. Option A is wrong because Azure AD service principals require secret management. Option C is wrong because certificate-based authentication still requires certificate deployment. Option D is wrong because access keys are static credentials.
Last reviewed: Jun 21, 2026
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