The Microsoft Azure Administrator (AZ-104) is the core Azure operations certification. It validates that you can manage Azure identities, configure storage, deploy and monitor virtual machines, set up virtual networks, and keep production resources running. It's an intermediate exam: harder than AZ-900, less demanding than the expert-tier AZ-305. Most Azure administrators take it as their primary certification goal.
The Short Answer
The AZ-104 is intermediate difficulty. It's not a conceptual overview exam. It tests whether you can actually perform Azure administration tasks, and a significant portion of the exam uses case studies and lab-style questions. Going in without hands-on experience is one of the most reliable ways to fail.
What the Exam Actually Tests
AZ-104 questions are scenario-based. You're given a situation involving an Azure environment and asked to pick the right action, service, or configuration. Many questions describe a partially configured environment and ask what you'd do next.
Common question types:
- "A team needs to give a contractor read access to a specific storage container without sharing credentials. What should you configure?" (Shared Access Signature or RBAC role assignment)
- "An application is experiencing high CPU utilisation on its VM. You need it to scale automatically. Which resource type do you configure?" (Virtual Machine Scale Set with autoscale rules)
- "A company has a hybrid network with on-premises DNS. Azure VMs need to resolve on-premises hostnames. What do you configure?" (Custom DNS server pointing to on-premises DNS or Azure Private Resolver)
- "You need to move a VM to a different subscription while keeping its managed disks. What is the correct approach?" (Resource Move via the portal or Move-AzResource PowerShell cmdlet)
The exam also includes drag-and-drop and hot-area question formats that require precise knowledge of portal navigation and configuration steps.
Exam Format
| Detail | Value |
|---|---|
| Exam code | AZ-104 |
| Questions | 40–60 (varies) |
| Time | 120 minutes |
| Passing score | 700 / 1000 |
| Format | Multiple choice, case studies, drag-and-drop, hot area |
| Cost | $165 USD |
Microsoft sometimes includes lab-based performance tasks (hands-on in a live Azure environment). When these appear, they're time-consuming and require practical skills. You can't bluff your way through them with a process of elimination.
Exam Domains
| Domain | Weight |
|---|---|
| Manage Azure identities and governance | 20–25% |
| Implement and manage storage | 15–20% |
| Deploy and manage Azure compute resources | 20–25% |
| Implement and manage virtual networking | 15–20% |
| Monitor and maintain Azure resources | 10–15% |
Identities and compute are the two largest domains. Get strong on Azure Active Directory (Entra ID), RBAC, virtual machines, and scale sets before anything else.
What Makes It Challenging
Hands-On Format
The lab tasks test whether you can complete real Azure tasks in a live environment. Multiple-choice study alone won't prepare you for these. Candidates who've spent time in the Azure portal and with Azure CLI / PowerShell have a significant advantage.
Azure Policy and RBAC Depth
The governance section expects precise knowledge of how Azure Policy, RBAC, management groups, and subscriptions interact. Understand scope: management group > subscription > resource group > resource. Know which policy effects do what (audit, deny, deployIfNotExists). Know the difference between a built-in role, a custom role, and a policy assignment.
Networking Complexity
VNet peering, VPN Gateway, ExpressRoute, Network Security Groups, Application Security Groups, Azure DNS, and Private Endpoints all appear on this exam. Networking questions often involve multiple services and require knowing both the configuration and the failure mode.
Compute Options
You need to know the differences between VMs, VM Scale Sets, App Service, Azure Kubernetes Service, Container Instances, and Functions well enough to pick the right one for a given scenario. The exam doesn't just test whether you know these services exist; it tests when to use each.
What Makes It Manageable
Strong Practical Orientation
If you work with Azure day-to-day, much of the AZ-104 material is familiar. The exam rewards real experience directly. Candidates who've deployed VMs, configured networking, and set up identity and access management will find large portions of the exam feel like their job.
Free Azure Resources for Practice
You can create a free Azure account with $200 credit for 30 days and a set of always-free services. Microsoft Learn provides hands-on labs aligned with the AZ-104 that run in a sandboxed Azure environment. You don't need to spend money to get practical experience.
Structured Learning Path
Microsoft Learn has a complete, free AZ-104 learning path with modules mapped to each exam domain. It's the most directly exam-relevant resource available and covers exactly what you need to know.
Pass Rate
Microsoft doesn't publish official pass rates. Community data from exam forums and prep sites suggests around 60-70% of prepared candidates pass AZ-104 on their first attempt. The lab component lowers the pass rate compared to multiple-choice-only exams.
How Long to Prepare
| Background | Estimated Prep Time |
|---|---|
| No Azure or cloud experience | 3–4 months |
| AZ-900 certified, limited hands-on Azure | 6–8 weeks |
| Working Azure administrator | 3–5 weeks focused review |
| Experience in equivalent AWS or GCP role | 4–6 weeks (service mapping takes time) |
Recommended Study Approach
- Work through the Microsoft Learn AZ-104 learning path in full. Don't skip the hands-on exercises.
- Open a free Azure account and replicate what you're studying. Create VMs, configure NSGs, set up VNet peering, and deploy resources from ARM templates.
- Study Azure Policy and RBAC until you can describe the scope hierarchy and policy effects without notes.
- Do the networking domains carefully. Sketch out how VNet peering, VPN Gateway, and NSG rules interact before trying to answer questions.
- Take timed practice exams. Use AZ-104 practice exams to find weak domains before booking.
Bottom Line
The AZ-104 is a hands-on exam that rewards practical Azure experience more than most certifications at the intermediate level. Candidates who've worked in Azure environments will find it manageable with 4-6 weeks of structured review. Candidates studying from scratch without building in Azure should plan for 2-3 months. The lab tasks are the real differentiator: you won't pass them on theory alone.