Question 574 of 1,411

Quick Answer

The answer is Data Lifecycle Management and eDiscovery. This combination is correct because Data Lifecycle Management (DLM) enforces a retention policy—such as keeping customer records for 7 years and then automatically deleting them—while eDiscovery allows you to place a legal hold on specific documents, preserving them indefinitely without overriding the broader retention rules. On the Microsoft SC-900 exam, this scenario tests your understanding of how these two Purview solutions work together to meet both compliance and litigation requirements. A common trap is assuming a single policy can handle both automatic deletion and indefinite preservation, but DLM handles the time-based lifecycle, and eDiscovery holds provide the targeted legal freeze. For a memory tip, think of DLM as the “timer” that deletes data on schedule, and eDiscovery as the “pause button” that freezes only the documents under legal review.

SC-900 Practice Question: Describe the capabilities of Microsoft compliance solutions

This SC-900 practice question tests your understanding of describe the capabilities of microsoft compliance solutions. 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. A key principle to apply: data Lifecycle Management creates retention policies for content across Microsoft 365.. 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 compliance officer needs to retain customer records for 7 years and then automatically delete them. However, during an ongoing legal case, the legal team must preserve specific documents indefinitely without affecting the retention policy for other documents. Which combination of Microsoft Purview solutions should the company use?

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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

Data Lifecycle Management and eDiscovery

Data Lifecycle Management (DLM) allows you to define retention policies (e.g., 7 years) and then automatically delete data at the end of that period. eDiscovery (specifically, eDiscovery holds) lets you place a legal hold on specific documents, preserving them indefinitely without altering the broader retention policy. Together, they meet both the automatic deletion requirement and the need to preserve documents during litigation.

Key principle: Data Lifecycle Management creates retention policies for content across Microsoft 365.

Answer analysis

Option-by-option breakdown

For each option: why learners choose it and why it is or isn't the right answer here.

  • Data Lifecycle Management and eDiscovery

    Why this is correct

    Data Lifecycle Management sets the retention and deletion policy. eDiscovery allows legal holds to preserve specific content for litigation without altering the retention policy.

    Related concept

    Data Lifecycle Management creates retention policies for content across Microsoft 365.

  • Records Management and Audit

    Why it's wrong here

    Records Management manages records declarations and disposition, but legal holds are handled by eDiscovery, not audit. Audit provides logging but not holds.

  • Information Protection and Data Loss Prevention

    Why it's wrong here

    Information Protection (sensitivity labels) and DLP prevent unauthorized sharing and access, but do not enforce retention/deletion or legal holds.

  • Communication Compliance and Insider Risk Management

    Why it's wrong here

    Communication Compliance monitors communications for policy violations, and Insider Risk Management detects risky user activities, neither provides retention or legal holds.

Common exam traps

Common exam trap: answer the scenario, not the keyword

The trap here is that candidates confuse Records Management (which can also apply retention and deletion) with Data Lifecycle Management, but Records Management lacks the legal hold capability that eDiscovery provides for preserving specific documents during litigation.

Detailed technical explanation

How to think about this question

Data Lifecycle Management uses retention labels and policies that can be applied at the folder, document, or site level, with actions like 'delete after X years' triggered by a timer job in the Microsoft 365 compliance center. eDiscovery holds work by placing a hold on content locations (e.g., mailboxes, SharePoint sites) via a query-based filter, which overrides the deletion action of a retention policy for held items only—this is implemented through the Preservation Hold library in SharePoint and the Recoverable Items folder in Exchange Online. A real-world scenario is a company that must comply with GDPR's right to erasure while simultaneously honoring a litigation hold from a court order.

KKey Concepts to Remember

  • Data Lifecycle Management creates retention policies for content across Microsoft 365.
  • eDiscovery allows legal teams to place holds on specific content for litigation.
  • eDiscovery holds override retention policies for the content under hold.
  • Retention policies can specify automatic deletion after a set period.

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

Data Lifecycle Management creates retention policies for content across Microsoft 365.

Real-world example

How this comes up in practice

A cloud solutions architect for a retail company is evaluating services for a new workload. The correct answer here reflects best practice for the specific scenario described — not a general cloud recommendation. Data Lifecycle Management creates retention policies for content across Microsoft 365. Cloud exam questions reward reading the constraint carefully: the same technology can be right or wrong depending on the use case.

What to study next

Got this wrong? Here's your next step.

Review data Lifecycle Management creates retention policies for content across Microsoft 365., then practise related SC-900 questions on the same topic to reinforce the concept.

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FAQ

Questions learners often ask

What does this SC-900 question test?

Describe the capabilities of Microsoft compliance solutions — This question tests Describe the capabilities of Microsoft compliance solutions — Data Lifecycle Management creates retention policies for content across Microsoft 365..

What is the correct answer to this question?

The correct answer is: Data Lifecycle Management and eDiscovery — Data Lifecycle Management (DLM) allows you to define retention policies (e.g., 7 years) and then automatically delete data at the end of that period. eDiscovery (specifically, eDiscovery holds) lets you place a legal hold on specific documents, preserving them indefinitely without altering the broader retention policy. Together, they meet both the automatic deletion requirement and the need to preserve documents during litigation.

What should I do if I get this SC-900 question wrong?

Review data Lifecycle Management creates retention policies for content across Microsoft 365., then practise related SC-900 questions on the same topic to reinforce the concept.

What is the key concept behind this question?

Data Lifecycle Management creates retention policies for content across Microsoft 365.

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Same concept, more angles

1 more ways this is tested on SC-900

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. Which TWO Microsoft Purview compliance solutions are used to manage data retention and deletion?

easy
  • A.Data Lifecycle Management
  • B.Data Loss Prevention
  • C.Records Management
  • D.Communication Compliance
  • E.Audit

Why A: Data Lifecycle Management (A) is correct because it enables organizations to apply retention and deletion policies to content based on its age or classification, automatically managing data across SharePoint, OneDrive, Exchange, and Teams. Records Management (C) is correct because it provides a solution for declaring records, applying retention labels that lock content to prevent modification or deletion, and managing disposition reviews for permanent deletion. Both solutions are part of Microsoft Purview's information governance capabilities, specifically designed to control data retention and deletion.

Last reviewed: Jun 11, 2026

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