SC-100 Design security solutions for infrastructure Practice Question
Your organization is implementing a zero-trust network strategy. You need to ensure that all network traffic between Azure virtual machines is encrypted and authenticated at the IP layer, regardless of the virtual network they are in. Which Azure feature should you configure?
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
✓
Azure Virtual Network encryption
Azure Virtual Network encryption provides IPsec encryption for traffic between VMs within the same virtual network or peered virtual networks. Service endpoints use public IPs. Private Link is for accessing PaaS services privately. VPN Gateway is for site-to-site.
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 Service Endpoints
Why it's wrong here
Azure Service Endpoints do not encrypt any virtual machine traffic. They simply extend a VNet's identity and firewall rules to Azure PaaS services by exposing service-specific IP addresses, forcing traffic to those services over the Microsoft backbone instead of the public internet. However, the data payload between two VMs, even in the same subnet, remains unencrypted and untouched by service endpoints. Because zero trust requires protecting all VM-to-VM traffic, service endpoints only address a narrow PaaS access scenario and cannot meet this requirement.
- ✗
Azure VPN Gateway
Why it's wrong here
Azure VPN Gateway creates IPsec tunnels only across untrusted boundaries, such as site-to-site VPNs from on-premises networks to Azure, or point-to-site VPNs from individual clients. It does not intercept, encrypt, or otherwise alter traffic that flows between virtual machines inside the same virtual network; such traffic is routed directly by the Azure fabric. The gateway itself is just a terminating endpoint for hybrid connectivity, not an inline proxy for internal east-west traffic. Therefore, it cannot satisfy a zero-trust requirement to encrypt all data in transit within Azure.
- ✗
Azure Private Link
Why it's wrong here
Azure Private Link provides private connectivity from a VNet to Azure platform services or your own service by creating a private endpoint with a network interface in the VNet. It does not analyze, encrypt, or influence traffic between two VMs in the same network; it only changes the path for a specific PaaS service, removing exposure to public endpoints. Even for the private endpoint traffic itself, Private Link does not add IPsec encryption—it just relies on the underlying Azure network. Hence, it is fundamentally not a mechanism for VM-to-VM encryption and fails the zero-trust test.
- ✓
Azure Virtual Network encryption
Why this is correct
Azure Virtual Network encryption is the correct solution because it applies IPsec encryption to all traffic between virtual machines and virtual network scale sets in the same VNet and between peered VNets. It uses AES-256-GCM with per-flow session keys that are negotiated automatically, and it is enforced on the Azure hypervisor vSwitch, making it transparent to applications and operating systems. This directly fulfills the zero-trust principle of 'assume breach' by ensuring no VM-to-VM traffic travels in plaintext, even within the trusted network perimeter.
Quick reference
VPN Protocol Comparison
| Protocol | Port | Encryption | Authentication | Use Case |
|---|---|---|---|---|
| IKEv2 / IPsec | UDP 500 / 4500 | AES-256 | Certificates / PSK | Site-to-site & remote access |
| SSL / TLS VPN | TCP 443 | TLS 1.3 | Certificates / MFA | Clientless remote access |
| L2TP / IPsec | UDP 1701 | AES (IPsec) | PSK / Certificates | Legacy remote access |
| WireGuard | UDP 51820 | ChaCha20 | Public keys | Modern high-performance VPN |
| PPTP | TCP 1723 | MPPE (weak) | MS-CHAPv2 | Legacy — avoid in production |
PPTP is considered insecure. IKEv2/IPsec and SSL VPN are the current recommended options.
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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.