The answer is Transparent Data Encryption (TDE) and Always Encrypted. TDE encrypts the Azure SQL Database at rest by automatically encrypting data files and backups without requiring changes to the application, while Always Encrypted protects data in transit and during processing by keeping encryption keys client-side, ensuring that only the application—not database administrators—can decrypt sensitive columns. On the Microsoft Cybersecurity Architect exam, this pairing tests your understanding of layered encryption controls: TDE handles storage-level protection, and Always Encrypted addresses the critical requirement of preventing privileged users from viewing plaintext. A common trap is choosing Dynamic Data Masking, which only obfuscates data without encryption, or Azure Key Vault, which stores keys but is not an encryption mechanism itself. Remember the mnemonic: "TDE for the drive, Always for the eyes" — TDE secures the database files at rest, and Always Encrypted keeps the data hidden from administrators during transit and query execution.
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.
Your company is developing a web application that stores sensitive customer data in Azure SQL Database. The data must be encrypted at rest and in transit. Additionally, you need to ensure that only the application can access the database, not individual administrators. Which two technologies should you implement? (Choose two.)
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Azure Key Vault
Option A is correct: Transparent Data Encryption (TDE) encrypts data at rest. Option C is correct: Always Encrypted protects data in transit and during processing by keeping encryption keys client-side, preventing administrators from seeing plaintext. Option B is wrong: Azure Information Protection is for labeling and classification, not database encryption. Option D is wrong: Dynamic Data Masking obfuscates data but does not encrypt it. Option E is wrong: Azure Key Vault is used to store keys but is not the encryption mechanism itself.
Key principle: Count usable hosts — not total addresses — and remember that the network and broadcast addresses are not available to hosts in standard IPv4 subnets.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
✓
Azure Key Vault
Why this is correct
AKV stores encryption keys but is not the encryption mechanism itself.
Common exam trap: usable hosts are not the same as total addresses
Subnetting questions often tempt you into counting all addresses. In normal IPv4 subnets, the network and broadcast addresses are not usable host addresses.
Detailed technical explanation
How to think about this question
Subnetting questions test whether you can identify the network, broadcast address, usable range, mask and correct subnet. Slow down enough to calculate the block size correctly.
KKey Concepts to Remember
CIDR notation defines the prefix length.
Block size helps identify subnet boundaries.
Network and broadcast addresses are not usable hosts in normal IPv4 subnets.
The required host count determines the smallest suitable subnet.
TExam Day Tips
→Write the block size before choosing the subnet.
→Check whether the question asks for hosts, subnets or a specific address range.
→Do not confuse /24, /25, /26 and /27 host counts.
Key takeaway
Count usable hosts — not total addresses — and remember that the network and broadcast addresses are not available to hosts in standard IPv4 subnets.
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 block sizes, usable host formulas (2^n − 2), and how to find network and broadcast addresses for /24 through /30. Then practise related SC-100 subnetting questions on CIDR, address ranges, and subnet selection.
Design security solutions for applications and data — This question tests Design security solutions for applications and data — CIDR notation defines the prefix length..
What is the correct answer to this question?
The correct answer is: Azure Key Vault — Option A is correct: Transparent Data Encryption (TDE) encrypts data at rest. Option C is correct: Always Encrypted protects data in transit and during processing by keeping encryption keys client-side, preventing administrators from seeing plaintext. Option B is wrong: Azure Information Protection is for labeling and classification, not database encryption. Option D is wrong: Dynamic Data Masking obfuscates data but does not encrypt it. Option E is wrong: Azure Key Vault is used to store keys but is not the encryption mechanism itself.
What should I do if I get this SC-100 question wrong?
Review block sizes, usable host formulas (2^n − 2), and how to find network and broadcast addresses for /24 through /30. Then practise related SC-100 subnetting questions on CIDR, address ranges, and subnet selection.
What is the key concept behind this question?
CIDR notation defines the prefix length.
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 organization is designing a new application that will store sensitive customer data in Azure Cosmos DB. You need to ensure that data at rest is encrypted using a customer-managed key (CMK) stored in Azure Key Vault. What should you configure?
medium
A.Enable Transparent Data Encryption (TDE) on the Cosmos DB account.
B.Enable Azure Storage Service Encryption (SSE) on the Cosmos DB account.
C.Use Always Encrypted with Azure SQL Database.
✓ D.Configure a customer-managed key in Azure Key Vault and assign it to the Cosmos DB account.
Why D: Option A is correct because Azure Cosmos DB supports CMK by creating an encryption key in Azure Key Vault and associating it with the Cosmos DB account. Option B is wrong because Transparent Data Encryption (TDE) is for SQL databases, not Cosmos DB. Option C is wrong because Always Encrypted is for SQL Server. Option D is wrong because Azure Storage Service Encryption is for storage accounts, not Cosmos DB.
Last reviewed: Jun 21, 2026
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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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