App-ID is the component that can provide application-based segmentation and prevent lateral threat

movement. Application-based segmentation is a method of dividing the network into smaller

segments or zones based on application or workload characteristics, such as function, dependency,

owner, or security posture. Lateral threat movement is a technique used by attackers to move across

the network from one compromised host to another, looking for sensitive data or assets. App-ID is a

feature that identifies and classifies applications and protocols based on their content and

characteristics, regardless of port, encryption, or evasion techniques. App-ID can provide application-

based segmentation and prevent lateral threat movement by applying granular security policies

based on application information to each segment or connection, blocking unauthorized access or

data exfiltration. DNS Security, NAT, and URL Filtering are not components that can provide

application-based segmentation and prevent lateral threat movement, but they are related features

that can enhance security and visibility. Reference: Palo Alto Networks Certified Software Firewall

Engineer (PCSFE), [App-ID Overview], [Microsegmentation with Palo Alto Networks], [Lateral

Movement]