Quick Answer
The answer is Azure Virtual Network encryption, which is the correct choice because it provides zero-trust network encryption for Azure VMs by encrypting and authenticating all traffic between virtual machines within a virtual network, regardless of subnet or IP address. This ensures that east-west traffic is protected at the network layer, meeting the zero-trust principle of never trusting and always verifying every packet. On the Microsoft Cybersecurity Architect exam, this concept tests your understanding of native Azure encryption capabilities versus perimeter-based solutions; a common trap is confusing it with VPN gateways (which encrypt site-to-site traffic, not intra-VNet) or assuming Azure Firewall or NSGs provide encryption—they do not. Remember the memory tip: “VNet encryption locks the hallway, not just the doors”—it encrypts traffic inside the network, not just at the borders.
This SC-100 practice question tests your understanding of design security solutions for infrastructure. 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 implementing a zero-trust network architecture in Azure. You need to ensure that all network traffic between virtual machines is encrypted and authenticated, regardless of the virtual network they reside in. What should you implement?
Azure VPN Gateway
Why wrong: VPN Gateway encrypts cross-premises traffic, not traffic within Azure.
Azure Virtual Network encryption
Virtual Network encryption encrypts all intra-VNet traffic.
Network Security Groups (NSGs)
Why wrong: NSGs provide filtering, not encryption.
Azure Firewall
Why wrong: Azure Firewall filters traffic but does not encrypt.
Answer choices
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
Option D is correct because Azure Virtual Network encryption encrypts all traffic between VMs within a virtual network, providing zero-trust encryption. Option A is wrong because VPN gateways provide site-to-site encryption, not intra-VNet encryption. Option B is wrong because Azure Firewall does not encrypt traffic. Option C is wrong because NSGs filter traffic but do not encrypt.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
For each option: why learners choose it and why it is or isn't the right answer here.
Azure VPN Gateway
Azure Virtual Network encryption
Why this is correct
Virtual Network encryption encrypts all intra-VNet traffic.
Related concept
Read the scenario before looking for a memorised answer.
Network Security Groups (NSGs)
Why it's wrong here
NSGs provide filtering, not encryption.
Azure Firewall
Why it's wrong here
Azure Firewall filters traffic but does not encrypt.
Common exam traps
Many certification questions include familiar terms but test a specific constraint. Read the exact wording before choosing an answer that is generally true but wrong for this case.
Detailed technical explanation
This question should be treated as a scenario, not a definition check. Identify the problem, the constraint and the best action. Then compare each option against those facts.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
An e-commerce site experiences heavy traffic on Black Friday and near-zero traffic during off-peak weeks. Rather than provisioning permanent large VMs, the team uses auto-scaling groups that add capacity automatically under load and reduce it overnight. Questions like this test whether you understand elasticity, availability zones, and cloud compute scaling patterns.
What to study next
Identify which SC-100 exam domain this question belongs to, then review the specific concept being tested. Practise related questions in that domain and focus on understanding why each wrong answer is tempting — not just why the correct answer is right.
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FAQ
Design security solutions for infrastructure — This question tests Design security solutions for infrastructure — Read the scenario before looking for a memorised answer..
The correct answer is: Azure Virtual Network encryption — Option D is correct because Azure Virtual Network encryption encrypts all traffic between VMs within a virtual network, providing zero-trust encryption. Option A is wrong because VPN gateways provide site-to-site encryption, not intra-VNet encryption. Option B is wrong because Azure Firewall does not encrypt traffic. Option C is wrong because NSGs filter traffic but do not encrypt.
Identify which SC-100 exam domain this question belongs to, then review the specific concept being tested. Practise related questions in that domain and focus on understanding why each wrong answer is tempting — not just why the correct answer is right.
Read the scenario before looking for a memorised answer.
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Last reviewed: Jun 21, 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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