The answer is managing user identities and controlling access to the CRM. This is correct because in the Software-as-a-Service shared responsibility model, the cloud provider secures the underlying infrastructure, while the customer retains ownership of their data and identities. For the Microsoft SC-900 exam, this concept tests your understanding of the boundary where provider responsibility ends and customer responsibility begins—a common trap is assuming the provider handles all security in SaaS, but identity and access management always falls to the customer. A helpful memory tip is to think of the provider as the landlord who secures the building, while you, the tenant, must lock your own doors and manage who has the keys.
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 uses a cloud-based Customer Relationship Management (CRM) system that is delivered as Software-as-a-Service (SaaS). According to the shared responsibility model, which security responsibility is primarily handled by the customer?
Physical security of the data center hosting the CRM
Why wrong: Physical security is the responsibility of the cloud provider for all service models, including SaaS.
B
Managing user identities and controlling access to the CRM
The customer is responsible for managing their own user identities, authentication, and authorization within the SaaS application, as well as configuring access policies.
C
Patching the underlying operating system of the CRM servers
Why wrong: The cloud provider handles patching and maintenance of the underlying infrastructure and platform for SaaS offerings.
D
Ensuring network security for the CRM application's backend
Why wrong: Network security of the backend is managed by the cloud provider as part of the SaaS service.
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Managing user identities and controlling access to the CRM
In a SaaS model, the cloud provider is responsible for the security of the underlying infrastructure, including physical data centers, operating systems, and network controls. The customer retains responsibility for securing their own data and identities, which includes managing user accounts, enforcing authentication policies (e.g., Azure ADMulti-Factor Authentication), and controlling access to the CRM application via role-based access control (RBAC). Therefore, managing user identities and access is the customer's primary security 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.
✗
Physical security of the data center hosting the CRM
Why it's wrong here
Physical security is the responsibility of the cloud provider for all service models, including SaaS.
✓
Managing user identities and controlling access to the CRM
Why this is correct
The customer is responsible for managing their own user identities, authentication, and authorization within the SaaS application, as well as configuring access policies.
Related concept
Read the scenario before looking for a memorised answer.
✗
Patching the underlying operating system of the CRM servers
Why it's wrong here
The cloud provider handles patching and maintenance of the underlying infrastructure and platform for SaaS offerings.
✗
Ensuring network security for the CRM application's backend
Why it's wrong here
Network security of the backend is managed by the cloud provider as part of the SaaS service.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often assume the customer is responsible for all security aspects of a SaaS application, but SC-900 emphasizes that the provider handles infrastructure and platform security, leaving the customer with identity, data, and access management.
Detailed technical explanation
How to think about this question
Under the shared responsibility model for SaaS, the customer's boundary includes identity and access management (IAM) using protocols like OAuth 2.0 and OpenID Connect, as well as data classification and encryption key management (if using customer-managed keys). For example, in Microsoft Dynamics 365, the customer configures conditional access policies in Azure AD to enforce MFA or device compliance, while Microsoft handles Hyper-V hypervisor patching and storage-level encryption. A real-world scenario is a customer failing to enable MFA, leading to a credential-stuffing attack that compromises CRM data—this is entirely within the customer's control.
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 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-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: Managing user identities and controlling access to the CRM — In a SaaS model, the cloud provider is responsible for the security of the underlying infrastructure, including physical data centers, operating systems, and network controls. The customer retains responsibility for securing their own data and identities, which includes managing user accounts, enforcing authentication policies (e.g., Azure AD Multi-Factor Authentication), and controlling access to the CRM application via role-based access control (RBAC). Therefore, managing user identities and access is the customer's primary security 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.
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