- A
Use user-assigned managed identities for all resources. Configure Key Vault access policies to allow the managed identity. Disable anonymous access to Storage.
Why wrong: Does not disable local authentication on Storage; should use Azure AD authentication exclusively.
- B
Use system-assigned managed identities for all resources. Store connection strings in Key Vault secrets and configure SQL Database to use Azure AD authentication.
Why wrong: Storing connection strings in Key Vault secrets still requires secret management and does not fully eliminate secrets.
- C
Use system-assigned managed identities for all resources. Configure each resource to use the managed identity. Disable local authentication on Key Vault and Storage. Enable Azure AD-only authentication on SQL Database.
This eliminates secrets entirely by using managed identities and disabling local authentication, enforcing Azure AD-only access.
- D
Use user-assigned managed identities for all resources. Create a service principal with a client secret for Key Vault access.
Why wrong: Using a service principal with a client secret contradicts the requirement of no secrets in code or configuration.
Quick Answer
The correct choice is to use system-assigned managed identities for all resources, disable local authentication on Key Vault and Storage, and enable Azure AD-only authentication on SQL Database. This combination enforces a security baseline where managed identities handle authentication without any secrets stored in code or configuration files, because system-assigned identities are inherently tied to each Azure resource and eliminate credential management entirely. On the Microsoft Cybersecurity Architect exam, this scenario tests your understanding of identity-based access controls and the principle of “no secrets in code,” often appearing as a trap where candidates mistakenly enable local authentication as a fallback. A common memory tip is to remember that managed identities are the only way to achieve a truly secret-free baseline, and disabling local authentication forces all access through Azure AD, closing the door on stored credentials.
SC-100 Practice Question: Design solutions that align with security best practices and priorities
This SC-100 practice question tests your understanding of design solutions that align with security best practices and priorities. This is a configuration task: choose the command set that satisfies every stated requirement. Small differences — like 'secret' vs 'password' or 'transport input ssh' vs 'all' — change whether the answer is correct. 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.
You are designing a security baseline for Azure resources that host a critical application. The application uses Azure SQL Database, Azure Storage, and Azure Key Vault. You need to ensure that all resources use managed identities for authentication and that no secrets are stored in code or configuration files. Which combination of controls should you include in the baseline?
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
Use system-assigned managed identities for all resources. Configure each resource to use the managed identity. Disable local authentication on Key Vault and Storage. Enable Azure AD-only authentication on SQL Database.
Option C is correct because it enforces the principle of using managed identities for authentication without storing any secrets. System-assigned managed identities are tied directly to each Azure resource, eliminating the need for credential management. Disabling local authentication on Key Vault and Storage, and enabling Azure AD-only authentication on SQL Database, ensures that only managed identities (or other Azure AD identities) can authenticate, meeting the requirement that no secrets are stored in code or configuration files.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Use user-assigned managed identities for all resources. Configure Key Vault access policies to allow the managed identity. Disable anonymous access to Storage.
Why it's wrong here
Does not disable local authentication on Storage; should use Azure AD authentication exclusively.
- ✗
Use system-assigned managed identities for all resources. Store connection strings in Key Vault secrets and configure SQL Database to use Azure AD authentication.
Why it's wrong here
Storing connection strings in Key Vault secrets still requires secret management and does not fully eliminate secrets.
- ✓
Use system-assigned managed identities for all resources. Configure each resource to use the managed identity. Disable local authentication on Key Vault and Storage. Enable Azure AD-only authentication on SQL Database.
Why this is correct
This eliminates secrets entirely by using managed identities and disabling local authentication, enforcing Azure AD-only access.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
Use user-assigned managed identities for all resources. Create a service principal with a client secret for Key Vault access.
Why it's wrong here
Using a service principal with a client secret contradicts the requirement of no secrets in code or configuration.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often think storing secrets in Key Vault is sufficient, but the question explicitly requires that no secrets be stored anywhere, including Key Vault, so the correct approach is to eliminate secrets entirely by using managed identities and disabling local authentication methods.
Detailed technical explanation
How to think about this question
System-assigned managed identities leverage Azure Instance Metadata Service (IMDS) to obtain tokens for Azure AD authentication without any credential rotation. When local authentication is disabled on Azure Storage (via the 'AllowBlobPublicAccess' property set to false and 'AllowSharedKeyAccess' set to false), only Azure AD tokens are accepted. For Azure SQL Database, enabling Azure AD-only authentication removes SQL authentication entirely, so only tokens from Azure AD (including managed identities) can connect, eliminating the need for connection strings or secrets.
KKey Concepts to Remember
- Read the scenario before looking for a memorised answer.
- Find the constraint that changes the correct option.
- Eliminate answers that are true in general but not in this case.
TExam Day Tips
- Watch for words such as best, first, most likely and least administrative effort.
- Review why wrong options are wrong, not only why the correct option is correct.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
How this comes up in practice
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
Questions learners often ask
What does this SC-100 question test?
Design solutions that align with security best practices and priorities — This question tests Design solutions that align with security best practices and priorities — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Use system-assigned managed identities for all resources. Configure each resource to use the managed identity. Disable local authentication on Key Vault and Storage. Enable Azure AD-only authentication on SQL Database. — Option C is correct because it enforces the principle of using managed identities for authentication without storing any secrets. System-assigned managed identities are tied directly to each Azure resource, eliminating the need for credential management. Disabling local authentication on Key Vault and Storage, and enabling Azure AD-only authentication on SQL Database, ensures that only managed identities (or other Azure AD identities) can authenticate, meeting the requirement that no secrets are stored in code or configuration files.
What should I do if I get this SC-100 question wrong?
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
What is the key concept behind this question?
Read the scenario before looking for a memorised answer.
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Last reviewed: Jun 24, 2026
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.
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