The correct answer is Making a physical copy of the encryption keys and locking it in a secure safe.

This option is not considered one of the three common approaches to store encryption keys in a cloud deployment because it is an offline, manual method that does not align with cloud automation, availability, or key lifecycle management. Cloud deployments expect keys to be accessible to services and to support automated rotation and auditing, and a physical safe breaks those operational models even though it can be used for long term cold backups in rare circumstances.

Keeping the keys on the same compute instance that runs the encryption engine is a common approach for simple deployments because it minimizes latency and operational complexity. It is less secure than other options because if the instance is compromised the keys are exposed, but it is still one of the three typical patterns.

Cloud Key Management Service is a standard managed option offered by cloud providers that centralizes key storage and lifecycle features and integrates with identity and access controls. This is a primary cloud pattern and is widely used for production workloads.

Hosting keys on a separate host within the same network segment is also a common pattern because it provides separation between the encryption engine and the key store. Organizations may run a dedicated key server or customer managed HSM on a separate host to improve isolation and control while still operating within the cloud network.

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