Hard1 markMultiple Choice
Domain 4.2: Application ArchitectureDomain 4IoT HubStream AnalyticsArchitecture
This question is part of a case study — click to read the full scenario(Case 51)

CASE STUDY: Contoso Manufacturing

Overview: Contoso Ltd is a global manufacturing company with 50,000 employees across 30 countries. They currently operate a mix of on-premises infrastructure (500 VMware VMs across 5 data centers) and Azure (20 subscriptions with 100+ VMs and various PaaS services). Their annual IT budget is $50 million, with plans to migrate 70% of workloads to Azure within 2 years.

Business Requirements: The company needs to reduce IT costs by 30%, improve disaster recovery (current RTO: 24 hours -> target: 2 hours), enhance security posture to meet ISO 27001 and SOC 2 compliance, and enable remote work for 80% of employees. All solutions must support future growth of 20% annually.

Technical Constraints: Some legacy applications cannot be modified and must run on Windows Server 2012 R2. Network connectivity requires 10 Gbps throughput to Azure with <20ms latency. GDPR compliance mandates that EU customer data must remain in European Azure regions.

Question:
To meet the security and compliance requirements, Contoso wants to ensure that all outbound internet traffic from their Azure Virtual Networks is inspected and filtered centrally.

Which network architecture should you implement?

AZ-305 · Question 53 · Domain 4.2: Application Architecture

CASE STUDY: Contoso Manufacturing

Overview: Contoso Ltd is a global manufacturing company with 50,000 employees across 30 countries. They currently operate a mix of on-premises infrastructure (500 VMware VMs across 5 data centers) and Azure (20 subscriptions with 100+ VMs and various PaaS services). Their annual IT budget is $50 million, with plans to migrate 70% of workloads to Azure within 2 years.

Business Requirements: The company needs to reduce IT costs by 30%, improve disaster recovery (current RTO: 24 hours -> target: 2 hours), enhance security posture to meet ISO 27001 and SOC 2 compliance, and enable remote work for 80% of employees. All solutions must support future growth of 20% annually.

Technical Constraints: Some legacy applications cannot be modified and must run on Windows Server 2012 R2. Network connectivity requires 10 Gbps throughput to Azure with <20ms latency. GDPR compliance mandates that EU customer data must remain in European Azure regions.

Question:
Contoso is deploying IoT sensors to their factory floors. The sensors will send millions of temperature readings per minute. If a reading exceeds a threshold, an alert must be triggered immediately. The raw data must also be stored for long-term analytics.

Which architecture should you recommend?

Answer options:

A.

IoT Hub -> Azure Functions -> Azure SQL Database

B.

IoT Hub -> Stream Analytics -> (Alerts & Data Lake Storage)

C.

Event Grid -> Logic Apps -> Cosmos DB

D.

Service Bus -> Azure Databricks -> Azure Synapse

How to approach this question

Identify the standard Azure IoT reference architecture for hot path (alerts) and cold path (storage) processing.

Full Answer

B.IoT Hub -> Stream Analytics -> (Alerts & Data Lake Storage)✓ Correct
IoT Hub -> Stream Analytics -> (Alerts & Data Lake Storage)
This is the classic Lambda architecture for IoT. Azure IoT Hub is designed to ingest millions of events per second from devices. Azure Stream Analytics connects to IoT Hub, runs real-time SQL queries over the data stream to detect anomalies (triggering alerts), and simultaneously routes the raw data to Azure Data Lake Storage Gen2 for long-term, low-cost analytics storage.

Common mistakes

Choosing Event Grid. Event Grid is for reactive programming (e.g., 'blob created'), not for buffering massive continuous telemetry streams.

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