Developing AI Cloud Solutions on Azure v1.0

You are developing an Azure Function that calls external APIs by providing an access token for the API. The access token is stored in a secret named token in an Azure Key Vault named mykeyvault.
You need to ensure the Azure Function can access the token. Which value should you store in the Azure Functions app configuration?

You process Azure Service Bus messages that require a dependent external API call.
If the API is temporarily unavailable, you must delay processing of the message without incrementing the delivery count.
You need to find a way to process the message when the API is available while keeping the message accessible.
Which message action should you perform?

HOTSPOT -
You configure an Event Grid event subscription that routes AI file-upload events to an Azure Function endpoint.
Events must be delivered only in the following conditions:
The event path starts with /uploads/ai/.
The payload property data.fileType is "pdf."
You must store undelivered events for later investigation and reprocessing if the subscriber endpoint cannot accept an event after multiple retries.
You need to configure the filtering and reliability settings.
Which configurations should you use? To answer, select the appropriate options in the answer area.
NOTE: Each correct selection is worth one point.

HOTSPOT -
You are creating an app that uses Event Grid to connect with other services. Your app's event data will be sent to a serverless function that checks compliance. This function is maintained by your company.
You write a new event subscription at the scope of your resource. The event must be invalidated after a specific period of time.
You need to configure Event Grid.
What should you do? To answer, select the appropriate options in the answer area.
NOTE: Each correct selection is worth one point.

HOTSPOT -
You have an Azure Service Bus namespace that contains a topic named Topic1.
You plan to create a subscription named Sub1 to Topic1. In Sub1, you plan to filter messages from Topic1 based on their system properties and apply an action that will annotate each filtered message.
You need to configure the filtering.
How should you configure the filtering? To answer, select the appropriate options in the answer area.
NOTE: Each correct selection is worth one point.

HOTSPOT -
You plan to develop an Azure Functions app with an HTTP trigger.
The app must support the following functionality:

Event-driven scaling -
Ability to use custom Linux images for function execution
You need to identify the app's hosting plan and the maximum amount of time that the app function can take to respond to incoming requests.
Which configuration setting values should you use? To answer, select the appropriate values in the answer area.
NOTE: Each correct selection is worth one point.

HOTSPOT -
You are reviewing the message-processing code in a backend worker service.
You review the following Python code that initializes and starts a Service Bus processor.

For each of the following statements, select Yes if the statement is true. Otherwise, select No.
NOTE: Each correct selection is worth one point.

DRAG DROP -
You are provisioning and configuring a Service Bus processor for AI batch jobs.
The processor must connect to an existing queue, register handlers for message and error processing, and then begin receiving messages.
You need to provision and configure the Service Bus processor for message and error handling.
Which four actions should you perform in sequence? To answer, move the appropriate actions from the list of actions to the answer area and arrange them in the correct order.

This is a case study. Case studies are not timed separately from other exam sections. You can use as much exam time as you would like to complete each case study. However, there might be additional case studies or other exam sections. Manage your time to ensure that you can complete all the exam sections in the time provided. Pay attention to the Exam Progress at the top of the screen so you have sufficient time to complete any exam sections that follow this case study.
To answer the case study questions, you will need to reference information that is provided in the case. Case studies and associated questions might contain exhibits or other resources that provide more information about the scenario described in the case. Information provided in an individual question does not apply to the other questions in the case study.
A Review Screen will appear at the end of this case study. From the Review Screen, you can review and change your answers before you move to the next exam section. After you leave this case study, you will NOT be able to return to it.

To start the case study -
To display the first question in this case study, select the "Next" button. To the left of the question, a menu provides links to information such as business requirements, the existing environment, and problem statements. Please read through all this information before answering any questions. When you are ready to answer a question, select the "Question" button to return to the question.

Background -
Fabrikam Inc. is a global retail analytics company that provides AI-driven demand forecasting and product recommendation services to online retailers. The company is modernizing its solution to run entirely on Microsoft Azure.
The platform ingests transaction data, generates embeddings for semantic retrieval, performs vector similarity search, and returns product recommendations through containerized microservices. Developers use Python and Azure SDKs. Operations teams manage container orchestration, scaling, monitoring, and security.
The solution must meet strict performance, scalability, and security requirements.

Current environment -

Application architecture -
The Recommendation engine is a customer-facing HTTP API running as a containerized Python application. The engine is deployed to Azure Container Apps (ACA).
Embeddings are stored in Azure Database for PostgreSQL by using pgvector.
Semantic retrieval uses metadata filtering combined with vector similarity search.
Azure Managed Redis is used as a caching layer.
Front-end and API workloads are deployed to Azure Container Apps (ACA).
Batch model retraining workloads run in Azure Kubernetes Service (AKS).

Container and CI/CD -
Container images are stored in Azure Container Registry (ACR).
CI/CD uses ACR Tasks to build images on commit.
ACA environments support revision management.
AKS workloads are deployed by using Kubernetes manifest files stored in Git.

Monitoring -
Logs are collected in Azure Monitor.
Teams inspect container logs and Kubernetes events when troubleshooting.
Developers write KQL queries to analyze latency spikes.

Business requirements -
Customer experience: Maintain a seamless, low-latency recommendation experience for end-users, even during unpredictable seasonal traffic spikes.
Operational cost efficiency: Minimize compute expenditures by deallocating resources during periods of inactivity and by preventing runaway scaling costs.
Data integrity and freshness: Ensure that product recommendations always reflect the most current catalog metadata and pricing to prevent customer dissatisfaction.
Security and compliance: Adhere to a Zero Trust security model by eliminating long-lived credentials and centralizing the management of all sensitive secrets.
Global scalability: Support the rapid ingestion of millions of new product embeddings daily without degrading query performance for existing retailers.

Technical requirements -
Performance: Semantic search latency must remain under 200 milliseconds at peak load.
Database optimization: Use pgvector for embeddings and implement metadata filtering to reduce compute overhead. Configure compute and memory appropriately for vector workloads to ensure high-dimensional index residency in RAM and efficient mathematical throughput. Vector similarity calculations must be performed only against products that satisfy mandatory metadata constraints.
Database performance: Database connections must support high concurrency with minimal latency through the implementation of connection optimization.
Data load strategy: To ensure maximum ingestion throughput, secondary indexes must be applied only after bulk loading of embeddings is complete.
Caching: Redis cache entries must expire automatically after 10 minutes. Implement a reactive mechanism to invalidate cache entries upon metadata updates.
Identity: Use managed identities for all service-to-service and service-to-database authentication. Plain-text credentials in configuration files are strictly prohibited.
Secret management: All secrets must be stored centrally. Secrets must be rotated automatically by using a centralized lifecycle policy.
Scaling: Use Kubernetes event-driven autoscaling (KEDA) for event-driven scaling. The Recommendation API must scale based on HTTP traffic, while batch jobs must scale based on queue length and support scale-to-zero.
CI/CD: All images must be stored in Azure Container Registry. Use ACR Tasks to automate image builds triggered by source code commits.
Monitoring: Use KQL to analyze performance telemetry and troubleshoot microservice connectivity failures. Inspect logs and events when troubleshooting AKS and ACA.
You need to implement a secret management solution for the Recommendation API to satisfy the security and identity requirements of Fabrikam Inc.
Which service should you use?

DRAG DROP -
This is a case study. Case studies are not timed separately from other exam sections. You can use as much exam time as you would like to complete each case study. However, there might be additional case studies or other exam sections. Manage your time to ensure that you can complete all the exam sections in the time provided. Pay attention to the Exam Progress at the top of the screen so you have sufficient time to complete any exam sections that follow this case study.
To answer the case study questions, you will need to reference information that is provided in the case. Case studies and associated questions might contain exhibits or other resources that provide more information about the scenario described in the case. Information provided in an individual question does not apply to the other questions in the case study.
A Review Screen will appear at the end of this case study. From the Review Screen, you can review and change your answers before you move to the next exam section. After you leave this case study, you will NOT be able to return to it.

To start the case study -
To display the first question in this case study, select the "Next" button. To the left of the question, a menu provides links to information such as business requirements, the existing environment, and problem statements. Please read through all this information before answering any questions. When you are ready to answer a question, select the "Question" button to return to the question.

Background -
Fabrikam Inc. is a global retail analytics company that provides AI-driven demand forecasting and product recommendation services to online retailers. The company is modernizing its solution to run entirely on Microsoft Azure.
The platform ingests transaction data, generates embeddings for semantic retrieval, performs vector similarity search, and returns product recommendations through containerized microservices. Developers use Python and Azure SDKs. Operations teams manage container orchestration, scaling, monitoring, and security.
The solution must meet strict performance, scalability, and security requirements.

Current environment -

Application architecture -
The Recommendation engine is a customer-facing HTTP API running as a containerized Python application. The engine is deployed to Azure Container Apps (ACA).
Embeddings are stored in Azure Database for PostgreSQL by using pgvector.
Semantic retrieval uses metadata filtering combined with vector similarity search.
Azure Managed Redis is used as a caching layer.
Front-end and API workloads are deployed to Azure Container Apps (ACA).
Batch model retraining workloads run in Azure Kubernetes Service (AKS).

Container and CI/CD -
Container images are stored in Azure Container Registry (ACR).
CI/CD uses ACR Tasks to build images on commit.
ACA environments support revision management.
AKS workloads are deployed by using Kubernetes manifest files stored in Git.

Monitoring -
Logs are collected in Azure Monitor.
Teams inspect container logs and Kubernetes events when troubleshooting.
Developers write KQL queries to analyze latency spikes.

Business requirements -
Customer experience: Maintain a seamless, low-latency recommendation experience for end-users, even during unpredictable seasonal traffic spikes.
Operational cost efficiency: Minimize compute expenditures by deallocating resources during periods of inactivity and by preventing runaway scaling costs.
Data integrity and freshness: Ensure that product recommendations always reflect the most current catalog metadata and pricing to prevent customer dissatisfaction.
Security and compliance: Adhere to a Zero Trust security model by eliminating long-lived credentials and centralizing the management of all sensitive secrets.
Global scalability: Support the rapid ingestion of millions of new product embeddings daily without degrading query performance for existing retailers.

Technical requirements -
Performance: Semantic search latency must remain under 200 milliseconds at peak load.
Database optimization: Use pgvector for embeddings and implement metadata filtering to reduce compute overhead. Configure compute and memory appropriately for vector workloads to ensure high-dimensional index residency in RAM and efficient mathematical throughput. Vector similarity calculations must be performed only against products that satisfy mandatory metadata constraints.
Database performance: Database connections must support high concurrency with minimal latency through the implementation of connection optimization.
Data load strategy: To ensure maximum ingestion throughput, secondary indexes must be applied only after bulk loading of embeddings is complete.
Caching: Redis cache entries must expire automatically after 10 minutes. Implement a reactive mechanism to invalidate cache entries upon metadata updates.
Identity: Use managed identities for all service-to-service and service-to-database authentication. Plain-text credentials in configuration files are strictly prohibited.
Secret management: All secrets must be stored centrally. Secrets must be rotated automatically by using a centralized lifecycle policy.
Scaling: Use Kubernetes event-driven autoscaling (KEDA) for event-driven scaling. The Recommendation API must scale based on HTTP traffic, while batch jobs must scale based on queue length and support scale-to-zero.
CI/CD: All images must be stored in Azure Container Registry. Use ACR Tasks to automate image builds triggered by source code commits.
Monitoring: Use KQL to analyze performance telemetry and troubleshoot microservice connectivity failures. Inspect logs and events when troubleshooting AKS and ACA.
You need to troubleshoot connectivity failures between microservices running in AKS.
Which troubleshooting actions should you perform? To answer, move the appropriate action to the correct troubleshooting scenario. You may use each action once, more than once, or not at all. You may need to move the split bar between panes or scroll to view content.
NOTE: Each correct selection is worth one point.

DRAG DROP -
This is a case study. Case studies are not timed separately from other exam sections. You can use as much exam time as you would like to complete each case study. However, there might be additional case studies or other exam sections. Manage your time to ensure that you can complete all the exam sections in the time provided. Pay attention to the Exam Progress at the top of the screen so you have sufficient time to complete any exam sections that follow this case study.
To answer the case study questions, you will need to reference information that is provided in the case. Case studies and associated questions might contain exhibits or other resources that provide more information about the scenario described in the case. Information provided in an individual question does not apply to the other questions in the case study.
A Review Screen will appear at the end of this case study. From the Review Screen, you can review and change your answers before you move to the next exam section. After you leave this case study, you will NOT be able to return to it.

To start the case study -
To display the first question in this case study, select the "Next" button. To the left of the question, a menu provides links to information such as business requirements, the existing environment, and problem statements. Please read through all this information before answering any questions. When you are ready to answer a question, select the "Question" button to return to the question.

Background -
Proseware Inc. develops AI-powered knowledge management solutions for enterprise customers. The company is modernizing its platform to support semantic search, intelligent document retrieval, and real-time partner integrations.
The engineering team uses Python and Azure SDKs. The architecture is being redesigned to support containerized microservices, vector search workloads, and serverless backend processing.
Planned Application Architecture
Microservices are containerized by using Docker.
Code for containerized microservices and Azure Function apps is developed locally but stored in a GitHub repository.
Custom images for containerized microservices are stored in Azure Container Registry (ACR).
Base images are stored in Docker Hub. Custom images must be rebuilt automatically whenever their base images are updated.
Azure Cosmos DB for NoSQL stores documents, metadata, and vector embeddings.
Azure Functions generate vector embeddings of Azure Cosmos DB for NoSQL-hosted documents and send messages to Service Bus to trigger search index updates.
Azure Container Apps (ACA) apps host backend API services that provide semantic search across Azure Cosmos DB for NoSQL documents. API services process Service Bus messages and update search indexes.
Azure Kubernetes Service (AKS) processes batch vector embedding regeneration for existing Azure Cosmos DB for NoSQL documents (whenever the embedding model is changed).
An extranet-facing containerized webhook allows business partners to submit documents to be processed by internal AI workflows for semantic search and retrieval.

Monitoring -
Telemetry generated by Azure resources is sent to Azure Monitor.
A Log Analytics workspace is used to collect ACA apps logs, AKS container logs, and Azure Functions apps logs.
Monitoring of Azure Functions is currently implemented by using Azure Application Insights SDK instrumentation.

Business Requirements -
Embeddings for new or updated Azure Cosmos DB for NoSQL-hosted documents must be automatically generated.
Backend API services must scale automatically during business hours.
Cold start delay of backend APIs must be minimized.
Secrets must be stored outside of container images.
Developers must be able to correlate telemetry across Azure Functions hosts and apps.
All tracing must be implemented by using OpenTelemetry SDK instrumentation.
Development efforts must be minimized.

Technical Requirements -
Container images must be built automatically and validated before code updates are merged into the main branch.
Image build automation must run inside the Azure Container Registry, eliminating dependency on local developer machines and external build services.
Dependency of image builds on local developer machines must be eliminated.
Event-driven scaling in ACA must occur based on the number of pending messages in the Azure Service Bus queue.
Azure Cosmos DB for NoSQL RU consumption must be minimized.
Vector similarity search must use embeddings stored in Azure Cosmos DB for NoSQL.
The partner-facing containerized webhook service must run on Azure App Service.
Secrets must NOT be stored in container images, source control, or application configuration directly. They must be accessed securely at runtime.
All secrets must be stored centrally in Azure Key Vault and accessed at runtime through a managed identity.
Azure App Service must supply secrets at runtime without relying on external services.
Resources and workloads must be deployed by using Bicep templates through an automated, version-controlled pipeline. Local and command-line deployments must be eliminated to ensure repeatable, auditable deployments.

Known Issues -
RU consumption spikes during vector similarity queries.
You need to implement trace correlation according to the business requirements.
Which three actions should you perform in sequence? To answer, move the appropriate actions from the list of actions to the answer area and arrange them in the correct order.
NOTE: More than one order of answer choices is correct. You will receive credit for any of the correct orders you select.

DRAG DROP -
This is a case study. Case studies are not timed separately from other exam sections. You can use as much exam time as you would like to complete each case study. However, there might be additional case studies or other exam sections. Manage your time to ensure that you can complete all the exam sections in the time provided. Pay attention to the Exam Progress at the top of the screen so you have sufficient time to complete any exam sections that follow this case study.
To answer the case study questions, you will need to reference information that is provided in the case. Case studies and associated questions might contain exhibits or other resources that provide more information about the scenario described in the case. Information provided in an individual question does not apply to the other questions in the case study.
A Review Screen will appear at the end of this case study. From the Review Screen, you can review and change your answers before you move to the next exam section. After you leave this case study, you will NOT be able to return to it.

To start the case study -
To display the first question in this case study, select the "Next" button. To the left of the question, a menu provides links to information such as business requirements, the existing environment, and problem statements. Please read through all this information before answering any questions. When you are ready to answer a question, select the "Question" button to return to the question.

Background -
Proseware Inc. develops AI-powered knowledge management solutions for enterprise customers. The company is modernizing its platform to support semantic search, intelligent document retrieval, and real-time partner integrations.
The engineering team uses Python and Azure SDKs. The architecture is being redesigned to support containerized microservices, vector search workloads, and serverless backend processing.
Planned Application Architecture
Microservices are containerized by using Docker.
Code for containerized microservices and Azure Function apps is developed locally but stored in a GitHub repository.
Custom images for containerized microservices are stored in Azure Container Registry (ACR).
Base images are stored in Docker Hub. Custom images must be rebuilt automatically whenever their base images are updated.
Azure Cosmos DB for NoSQL stores documents, metadata, and vector embeddings.
Azure Functions generate vector embeddings of Azure Cosmos DB for NoSQL-hosted documents and send messages to Service Bus to trigger search index updates.
Azure Container Apps (ACA) apps host backend API services that provide semantic search across Azure Cosmos DB for NoSQL documents. API services process Service Bus messages and update search indexes.
Azure Kubernetes Service (AKS) processes batch vector embedding regeneration for existing Azure Cosmos DB for NoSQL documents (whenever the embedding model is changed).
An extranet-facing containerized webhook allows business partners to submit documents to be processed by internal AI workflows for semantic search and retrieval.

Monitoring -
Telemetry generated by Azure resources is sent to Azure Monitor.
A Log Analytics workspace is used to collect ACA apps logs, AKS container logs, and Azure Functions apps logs.
Monitoring of Azure Functions is currently implemented by using Azure Application Insights SDK instrumentation.

Business Requirements -
Embeddings for new or updated Azure Cosmos DB for NoSQL-hosted documents must be automatically generated.
Backend API services must scale automatically during business hours.
Cold start delay of backend APIs must be minimized.
Secrets must be stored outside of container images.
Developers must be able to correlate telemetry across Azure Functions hosts and apps.
All tracing must be implemented by using OpenTelemetry SDK instrumentation.
Development efforts must be minimized.

Technical Requirements -
Container images must be built automatically and validated before code updates are merged into the main branch.
Image build automation must run inside the Azure Container Registry, eliminating dependency on local developer machines and external build services.
Dependency of image builds on local developer machines must be eliminated.
Event-driven scaling in ACA must occur based on the number of pending messages in the Azure Service Bus queue.
Azure Cosmos DB for NoSQL RU consumption must be minimized.
Vector similarity search must use embeddings stored in Azure Cosmos DB for NoSQL.
The partner-facing containerized webhook service must run on Azure App Service.
Secrets must NOT be stored in container images, source control, or application configuration directly. They must be accessed securely at runtime.
All secrets must be stored centrally in Azure Key Vault and accessed at runtime through a managed identity.
Azure App Service must supply secrets at runtime without relying on external services.
Resources and workloads must be deployed by using Bicep templates through an automated, version-controlled pipeline. Local and command-line deployments must be eliminated to ensure repeatable, auditable deployments.

Known Issues -
RU consumption spikes during vector similarity queries.
You need to configure event-driven scaling for the backend API services to meet the technical requirements.
Which settings should you use for each element? To answer, move the appropriate settings to the correct elements. You may use each setting once, more than once, or not at all. You may need to move the split bar between panes or scroll to view content.
NOTE: Each correct selection is worth one point.

You deploy a production Azure Function app that connects to an Azure SQL Database.
The solution must provide the following functionality:
Prevent secrets from being exposed in source control.
Support secret rotation without redeploying the function app.
Avoid downtime during credential updates.
You need to configure secure and maintainable secret management.
What should you configure?

An AI platform uses App Configuration for feature flags and endpoint routing.
The platform stores secrets alongside configuration data and does NOT support dynamic refresh.
The solution must support dynamic configuration refresh while ensuring that secrets are NOT stored in App Configuration.
You need to enable secure dynamic configuration management for the platform.
Which three actions should you perform? Each correct answer presents part of the solution.
NOTE: Each correct selection is worth one point.