Why AZ-104 Remains the Foundation Cloud Certification in 2026
In an era where multi-cloud strategies dominate enterprise architecture and Azure holds 23% of the cloud market, the Microsoft Certified: Azure Administrator Associate (AZ-104) remains one of the most valuable certifications for IT professionals.
Unlike entry-level certifications that test vocabulary, AZ-104 validates that you can actually manage Azure environments. When you pass, employers know you can configure virtual networks, secure identities, deploy compute resources, and troubleshoot real infrastructure problems.
This guide covers everything you need to pass AZ-104 in 2026, including the exam format, skills measured, hands-on lab recommendations, and a 10-week study plan.
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AZ-104 Exam Overview
Quick Facts
| Component | Details |
|---|---|
| Exam Code | AZ-104 |
| Questions | 40-60 |
| Duration | 120 minutes |
| Passing Score | ~700/1000 (estimated) |
| Cost | $165 USD |
| Format | Multiple choice, case studies, build lists |
| Validity | 1 year (renewal required) |
| Prerequisites | None (experience recommended) |
Skills Measured Breakdown
| Domain | Weight | Key Topics |
|---|---|---|
| Manage Azure AD and Governance | 15-20% | Users, groups, RBAC, Azure Policy, subscriptions |
| Implement and Manage Storage | 15-20% | Blob, Files, Tables, Queues, backup, replication |
| Deploy and Manage Compute | 20-25% | VMs, VMSS, App Service, AKS, ACI, Functions |
| Configure and Manage Virtual Networking | 20-25% | VNets, NSGs, VPN Gateway, ExpressRoute, Private Link |
| Monitor and Maintain Resources | 10-15% | Monitor, Log Analytics, Alerts, Backup, Site Recovery |
Domain 1: Manage Azure Identities and Governance (15-20%)
Azure Active Directory
Core Concepts:
- Tenants: Each Azure AD instance is a tenant
- Users: Cloud-only vs. synchronized from on-prem AD
- Groups: Security groups vs. Microsoft 365 groups
- Licenses: Free, P1, P2 tiers with different features
Key Configuration Tasks:
- Create and manage users (portal, CLI, PowerShell)
- Configure group membership and owners
- Assign licenses to users and groups
- Configure external identities (B2B collaboration)
- Manage password resets and self-service
Role-Based Access Control (RBAC)
Built-in Roles (Know These):
- Owner: Full access including permissions management
- Contributor: Full access except permissions
- Reader: View all resources but cannot modify
- User Access Administrator: Manage user access to resources
Role Assignment Components:
- Security Principal: User, group, service principal, managed identity
- Role Definition: Collection of permissions
- Scope: Resource, resource group, subscription, management group
Custom Roles:
- Create with JSON role definition
- Use Azure CLI or PowerShell
- Cannot assign at tenant root level
Azure Policy
Policy Types:
- Built-in policies: Pre-created by Microsoft
- Custom policies: JSON definitions you create
Common Use Cases:
- Enforce tagging requirements
- Restrict VM sizes
- Require SQL encryption
- Audit compliance
Policy vs. RBAC:
- RBAC: Controls what you CAN do (authorization)
- Policy: Controls what you MUST do (compliance)
Governance Tools
Azure Blueprints:
- Deploy consistent environments
- Include ARM templates, policies, RBAC assignments
- Subscription-level deployment
Management Groups:
- Organize subscriptions hierarchically
- Apply policies/RBAC at scale
- Up to 10,000 management groups per tenant
Resource Locks:
- CanNotDelete: Prevent deletion
- ReadOnly: Prevent modification
- Apply at subscription, resource group, or resource level
Domain 2: Implement and Manage Storage (15-20%)
Azure Storage Account Types
| Type | Use Case | Redundancy |
|---|---|---|
| Standard (GPv2) | General purpose | LRS, ZRS, GRS, GZRS |
| Premium (Block Blobs) | Low latency apps | LRS, ZRS |
| Premium (File Shares) | High-performance file shares | LRS, ZRS |
| Premium (Page Blobs) | Premium SSD disks | LRS, ZRS |
Blob Storage
Access Tiers:
- Hot: Frequently accessed (highest storage cost, lowest access cost)
- Cool: Infrequently accessed (30+ days storage)
- Cold: Rarely accessed (90+ days storage)
- Archive: Rarely accessed (180+ days, hours retrieval)
Security:
- Shared Access Signatures (SAS): Time-limited access tokens
- Azure AD authentication: RBAC for blob access
- Encryption: Always encrypted at rest (Microsoft-managed or CMK)
Key Operations:
- Upload/download blobs (portal, CLI, SDK)
- Configure blob lifecycle policies
- Enable blob versioning
- Configure soft delete (7-365 days)
- Configure immutability policies
Azure Files
Use Cases:
- Lift-and-shift applications
- Shared application configuration
- Diagnostics and logs
- Development/test environments
Key Features:
- SMB and NFS protocols
- Azure AD Domain Services integration
- Hybrid access via File Sync
- Snapshots for point-in-time recovery
File Sync:
- Cache Azure file shares on Windows Server
- Tiering (cloud vs. local)
- Sync groups for multi-server scenarios
Storage Security and Management
Networking:
- Private endpoints for secure access
- Service endpoints (legacy approach)
- Firewall rules and virtual network rules
Monitoring:
- Storage Analytics metrics
- Diagnostic logging
- Capacity and transaction monitoring
Domain 3: Deploy and Manage Azure Compute Resources (20-25%)
Virtual Machines
VM Sizes (Know the Families):
- A-series: Entry-level, dev/test
- B-series: Burstable, cost-effective
- D-series: General purpose, balanced
- E-series: Memory optimized
- F-series: Compute optimized
- H-series: High performance computing
- L-series: Storage optimized
- M-series: Memory optimized (large)
Disk Types:
- Ultra Disk: Sub-millisecond latency, configurable performance
- Premium SSD: High performance, production workloads
- Standard SSD: Consistent performance, lower cost
- Standard HDD: Lowest cost, dev/test acceptable
Availability Options:
- Availability Sets: 2+ fault domains, 5 update domains
- Availability Zones: Physically separate datacenters
- Virtual Machine Scale Sets: Auto-scaling groups
Configuration Tasks:
- Deploy VMs (portal, CLI, ARM templates)
- Configure extensions (custom script, DSC, etc.)
- Configure disk encryption (Azure Disk Encryption)
- Configure networking (VNet, NSG, public IP)
- Configure monitoring and diagnostics
App Service
App Types:
- Web Apps
- API Apps
- WebJobs (background tasks)
- Mobile Apps (legacy)
Deployment Options:
- Git/GitHub integration
- Azure DevOps
- Container registry
- ZIP deploy
- FTP
Scaling:
- Scale up: Change to larger App Service plan
- Scale out: Increase instance count (auto-scale supported)
Key Features:
- Deployment slots (staging/production)
- Custom domains and SSL
- Authentication/Authorization (Easy Auth)
- Hybrid connections
- VNet integration
Container Services
Azure Kubernetes Service (AKS):
- Managed Kubernetes control plane
- Node pools and cluster autoscaler
- Azure AD integration
- Container networking policies
Azure Container Instances (ACI):
- Serverless containers
- No orchestration complexity
- Fast startup times
- Per-second billing
Azure Container Registry (ACR):
- Private Docker registry
- Geo-replication
- Content trust and signing
- Tasks for automated builds
Azure Functions
Hosting Plans:
- Consumption: Serverless, pay-per-execution
- Premium: Pre-warmed workers, VNet integration
- App Service Plan: Run on dedicated VMs
Triggers and Bindings:
- HTTP triggers (REST APIs)
- Timer triggers (scheduled tasks)
- Queue/Topic triggers (message processing)
- Blob triggers (file processing)
- Event Grid/Event Hub triggers
Domain 4: Configure and Manage Virtual Networking (20-25%)
Virtual Networks (VNets)
Address Space:
- Use private IP ranges (10.0.0.0/8, 172.16.0.0/12, 192.168.0.0/16)
- Plan for growth (avoid small subnets)
- No overlapping address spaces in peering
Subnets:
- Segregate by workload type
- Reserve gateway subnet for VPN/ExpressRoute
- Use NSGs at subnet level
VNet Peering:
- Connect VNets (same or different regions)
- Transitive routing limitations
- Gateway transit for shared connectivity
Network Security
Network Security Groups (NSGs):
- Filter traffic at subnet and NIC levels
- Default rules (allow VNet, allow Azure LB, deny all inbound)
- Custom rules with priority (100-4096)
- Stateful inspection
Application Security Groups (ASGs):
- Group VMs by application role
- Reference ASGs in NSG rules instead of IP addresses
- Simplify security rule management
Azure Firewall:
- Managed firewall as a service
- Threat intelligence integration
- SNAT/DNAT capabilities
- Hub-and-spoke architecture support
Connectivity Options
VPN Gateway:
- Site-to-site (S2S) VPN
- Point-to-site (P2S) VPN
- VNet-to-VNet VPN
- Gateway SKUs (Basic, VpnGw1-5)
ExpressRoute:
- Private connection to Azure (not over internet)
- Layer 3 connectivity via partner
- Higher bandwidth, lower latency than VPN
- More expensive than VPN
Azure Private Link:
- Private connectivity to PaaS services
- Bypass public internet
- Private Endpoint for resource access
- Private Link Service for your own services
Load Balancing
Azure Load Balancer:
- Layer 4 (TCP/UDP) load balancing
- Public and internal SKUs
- Health probes for backend monitoring
- Distribution modes (hash-based, source IP affinity)
Azure Application Gateway:
- Layer 7 (HTTP/HTTPS) load balancing
- Web Application Firewall (WAF)
- SSL termination
- URL-based routing
- Session affinity
Azure Front Door:
- Global load balancing
- CDN capabilities
- WAF at edge
- Dynamic site acceleration
Azure Traffic Manager:
- DNS-based traffic routing
- Geographic routing
- Performance routing
- Failover routing
Domain 5: Monitor and Maintain Azure Resources (10-15%)
Azure Monitor
Components:
- Metrics: Numerical data (performance counters)
- Logs: Structured and unstructured log data
- Alerts: Proactive notifications
- Workbooks: Interactive reports
- Insights: Pre-built monitoring for specific services
Log Analytics Workspace:
- Central log repository
- KQL (Kusto Query Language) for queries
- Retention configuration (30-730 days)
- Pricing tiers
Application Insights:
- Application Performance Monitoring (APM)
- Distributed tracing
- Exception tracking
- Availability tests
Backup and Recovery
Azure Backup:
- VM backup (app-consistent)
- File/folder backup (MARS agent)
- SQL Server in VM backup
- SAP HANA backup
- Soft delete protection
Azure Site Recovery:
- Disaster recovery for VMs
- On-prem to Azure replication
- Azure region-to-region replication
- Recovery plans for orchestrated failover
Configuration Tasks:
- Configure backup policies
- Perform test restores
- Configure retention policies
- Set up replication
Resource Optimization
Azure Advisor:
- Cost recommendations
- Security recommendations
- High availability recommendations
- Performance recommendations
- Operational excellence recommendations
Cost Management:
- Budgets and alerts
- Cost analysis
- Reserved instance recommendations
- Tagging for chargeback
10-Week AZ-104 Study Plan
Weeks 1-2: Azure Fundamentals
Week 1: Azure AD and Identity
- Azure AD fundamentals
- User and group management
- RBAC concepts and implementation
- Azure Policy basics
Hands-on Labs:
- Create Azure AD users and groups
- Assign RBAC roles at different scopes
- Create and apply Azure Policy
Week 2: Governance and Subscription Management
- Subscription types and billing
- Management groups
- Resource locks
- Cost management and tagging
Weeks 3-4: Storage and Networking
Week 3: Azure Storage
- Storage account types and configuration
- Blob storage tiers
- Azure Files and File Sync
- Storage security (SAS, encryption)
Hands-on Labs:
- Create storage accounts with different redundancy
- Upload blobs and configure lifecycle policies
- Set up Azure Files share
- Generate and test SAS tokens
Week 4: Virtual Networking
- VNet and subnet design
- NSG configuration
- VNet peering
- Private endpoints
Hands-on Labs:
- Create VNet with multiple subnets
- Configure NSG rules
- Set up VNet peering between two VNets
- Configure private endpoint for storage
Weeks 5-6: Compute Resources
Week 5: Virtual Machines
- VM deployment and sizing
- Disk types and configuration
- Availability Sets and Zones
- VM extensions
Hands-on Labs:
- Deploy VMs in Availability Set
- Configure managed disks
- Set up VM extensions
- Configure VM monitoring
Week 6: App Service and Containers
- App Service plans and deployment
- Container services (AKS, ACI)
- Azure Functions
Hands-on Labs:
- Deploy web app from GitHub
- Create AKS cluster and deploy application
- Deploy container to ACI
- Create Azure Function with HTTP trigger
Weeks 7-8: Advanced Networking and Security
Week 7: Advanced Networking
- Load balancing options
- VPN Gateway configuration
- ExpressRoute concepts
- Azure Firewall
Hands-on Labs:
- Configure Load Balancer
- Set up VPN Gateway
- Configure Azure Firewall
Week 8: Security and Compliance
- Azure Security Center/Defender
- Azure Key Vault
- Azure AD conditional access
- Encryption at rest and in transit
Weeks 9-10: Monitoring and Final Prep
Week 9: Monitoring and Maintenance
- Azure Monitor and Log Analytics
- Alerts and action groups
- Backup and Site Recovery
- Azure Advisor
Hands-on Labs:
- Create Log Analytics workspace
- Set up alerts
- Configure VM backup
- Review Azure Advisor recommendations
Week 10: Practice Exams and Review
- Full-length practice exams
- Weak area review
- Hands-on scenario practice
- Final review of all domains
Hands-On Lab Recommendations
Free Resources
-
Microsoft Learn Sandboxes
- Free Azure environment for exercises
- Accessible via Microsoft Learn modules
- No credit card required
-
Azure Free Account
- $200 credit for 30 days
- 12 months of free services
- Always free services after trial
-
Visual Studio Subscription
- Monthly Azure credits ($50-150)
- Access to Azure DevOps features
- Developer tools
Practice Projects
Beginner Projects:
- Deploy 3-tier web application (web/app/database)
- Set up VNet with private subnet
- Configure Azure AD authentication
Intermediate Projects:
- Deploy AKS cluster with ingress controller
- Configure site-to-site VPN simulation
- Implement Azure Policy compliance framework
Advanced Projects:
- Multi-region disaster recovery setup
- Hybrid identity architecture
- Complex networking with hub-and-spoke
Exam Day Tips
Preparation Checklist
- Review official skills measured
- Complete hands-on labs
- Take practice exams (scoring 80%+)
- Review case study strategies
- Check system requirements for online exam
Question Strategy
- Read carefully - Azure questions often have subtle details
- Eliminate wrong answers - Narrow down options
- Watch for distractors - Similar services (Blob vs. Files)
- Consider cost - Often the differentiating factor
- Mark for review - Don't spend too long on one question
Case Studies
- Read all case information before questions
- Take notes on key requirements
- Questions often build on each other
- Refer back to case details as needed
Career Impact and Next Steps
Salary Expectations
| Role | Avg Salary (US) | With AZ-104 |
|---|---|---|
| Systems Administrator | $70,000 | $85,000-95,000 |
| Cloud Administrator | $95,000 | $105,000-120,000 |
| Azure Engineer | $110,000 | $120,000-140,000 |
| DevOps Engineer | $115,000 | $125,000-145,000 |
Career Path After AZ-104
Intermediate Certifications:
- AZ-500: Azure Security Engineer
- AZ-700: Azure Network Engineer
- AZ-400: Azure DevOps Engineer
Advanced Certifications:
- AZ-305: Azure Solutions Architect
- AZ-600: Azure Stack Hub Operator
Related Paths:
- Cloud architecture
- Site reliability engineering
- Cloud security specialization
- DevOps and automation
Conclusion
The AZ-104 Azure Administrator certification validates your ability to implement and manage Microsoft Azure environments—a skill set in high demand across virtually every industry.
The exam requires both theoretical knowledge and practical experience. You cannot pass by memorizing facts alone; you need hands-on time with Azure services.
Follow the 10-week study plan, complete the recommended labs, and practice with scenario-based questions. With dedication and hands-on experience, you'll join the ranks of certified Azure Administrators.