The answer is that Microsoft retains responsibility for protecting the physical datacenter and the underlying hardware. This is correct because in the shared responsibility model for IaaS, the cloud provider manages the physical layer up to the hypervisor, including servers, storage, networking, and physical security, while the customer manages everything above the hypervisor, such as the guest OS, application code, and data. On the SC-900 exam, this distinction tests your understanding of how responsibilities shift across service models; a common trap is assuming Microsoft handles the guest OS in IaaS, when in fact that is the customer’s job. A helpful memory tip is to think of IaaS as “Infrastructure as a Service”—Microsoft secures the infrastructure (the building and the racks), while you secure everything you install inside.
SC-900 Practice Question: Describe the concepts of security, compliance, and identity
This SC-900 practice question tests your understanding of describe the concepts of security, compliance, and identity. 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 deploys a web application on Azure virtual machines (VMs) in an Infrastructure-as-a-Service (IaaS) model. The company is responsible for managing the guest operating system, the application code, and the data stored on the VMs. According to the shared responsibility model, which of the following security responsibilities does Microsoft retain in this scenario?
Protecting the physical datacenter and the underlying hardware
Microsoft retains responsibility for the physical security of datacenters, servers, storage, and networking hardware in all cloud models, including IaaS.
B
Configuring the operating system firewall on each VM
Why wrong: Configuring the OS-level firewall is a customer responsibility, as the customer manages the guest OS.
C
Installing and patching the application software
Why wrong: The customer is responsible for managing and patching application software deployed on IaaS VMs.
D
Managing user access to the application
Why wrong: Identity and access management for the application is the customer's responsibility.
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Protecting the physical datacenter and the underlying hardware
In an IaaS model, Microsoft retains responsibility for the physical datacenter, including physical security, the network infrastructure, and the underlying hardware (servers, storage, networking). This is because the customer manages the guest OS, application, and data, while Microsoft manages the physical layer up to the hypervisor. Option A correctly identifies this retained responsibility.
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.
✓
Protecting the physical datacenter and the underlying hardware
Why this is correct
Microsoft retains responsibility for the physical security of datacenters, servers, storage, and networking hardware in all cloud models, including IaaS.
Related concept
Read the scenario before looking for a memorised answer.
✗
Configuring the operating system firewall on each VM
Why it's wrong here
Configuring the OS-level firewall is a customer responsibility, as the customer manages the guest OS.
✗
Installing and patching the application software
Why it's wrong here
The customer is responsible for managing and patching application software deployed on IaaS VMs.
✗
Managing user access to the application
Why it's wrong here
Identity and access management for the application is the customer's responsibility.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often confuse 'security of the cloud' (Microsoft's responsibility for the physical infrastructure) with 'security in the cloud' (the customer's responsibility for their own configurations, applications, and data), leading them to incorrectly assign guest OS or application-level tasks to Microsoft.
Detailed technical explanation
How to think about this question
The shared responsibility model delineates that Microsoft is responsible for the 'physical host' (including the hypervisor, physical network, and datacenter) while the customer is responsible for everything within the guest OS, including OS patches, application stack, and data. This boundary is enforced by the hypervisor (e.g., Hyper-V) which isolates the VM from the host. In practice, if a vulnerability in the guest OS is exploited, Microsoft is not liable; however, if a vulnerability in the hypervisor or physical hardware is exploited, Microsoft is responsible for remediation.
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.
Related glossary terms
Concepts from this question explained
These glossary pages explain the core terms tested in this SC-900 question in full detail.
Describe the concepts of security, compliance, and identity — This question tests Describe the concepts of security, compliance, and identity — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Protecting the physical datacenter and the underlying hardware — In an IaaS model, Microsoft retains responsibility for the physical datacenter, including physical security, the network infrastructure, and the underlying hardware (servers, storage, networking). This is because the customer manages the guest OS, application, and data, while Microsoft manages the physical layer up to the hypervisor. Option A correctly identifies this retained responsibility.
What should I do if I get this SC-900 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.
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. A company hosts a line-of-business application on an Azure virtual machine. The IT team is responsible for configuring the operating system, installing security updates, and managing the application code. An auditor asks who is responsible for the physical security of the data center where the virtual machine runs. According to the shared responsibility model for cloud services, who is responsible?
hard
A.The customer
✓ B.Microsoft
C.Both the customer and Microsoft equally
D.Neither – physical security is no longer needed in the cloud
Why B: Under the shared responsibility model, Microsoft is responsible for the physical security of its Azure data centers, including access controls, surveillance, and environmental safeguards. The customer is responsible for securing the virtual machine's operating system, applications, and data, but not the physical infrastructure. Therefore, Microsoft retains responsibility for physical security even when the customer manages the guest OS and application.
Last reviewed: Jun 11, 2026
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