The AZ-304 exam, also known as the "Microsoft Azure Architect Design," is part of the certification process for professionals aiming to become certified Azure Solutions Architects. This exam tests candidates on their ability to design solutions that run on Microsoft Azure, including aspects like security, scalability, and performance. Candidates are evaluated on their knowledge of various topics, such as Azure governance, monitoring, and identity management. Successfully passing the AZ-304 exam demonstrates a candidate's proficiency in designing cloud solutions that meet business requirements and adhere to best practices in the Azure environment.