Managed identities concept in Azure - Step-by-Step Execution

Process Flow - Managed identities concept

Create Azure Resource

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Enable Managed Identity

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Azure assigns Identity

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Resource requests token

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Azure AD validates request

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Token issued to resource

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Resource accesses other Azure services

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Access granted based on token

This flow shows how an Azure resource with managed identity requests and receives a token to access other Azure services securely without storing credentials.

Execution Sample

Azure

1. Create VM with managed identity enabled
2. VM requests token from Azure AD
3. Azure AD validates and issues token
4. VM uses token to access Azure Key Vault

This example shows a VM using its managed identity to get a token and access a Key Vault securely.

Process Table

Step	Action	Request/Response	Result
1	Create VM with managed identity enabled	N/A	VM created with identity assigned
2	VM requests token from Azure AD	Token request sent	Azure AD receives request
3	Azure AD validates VM identity	Validation successful	Token issued
4	VM receives token	Token received	Ready to access resources
5	VM uses token to access Key Vault	Access request with token	Access granted
6	VM accesses secrets from Key Vault	Secrets retrieved	Operation successful

💡 Process ends after VM successfully accesses Key Vault using managed identity token

Status Tracker

Variable	Start	After Step 2	After Step 3	After Step 4	Final
VM Identity	Not assigned	Assigned by Azure	Validated	Token received	Used for access
Token	None	Requested	Issued	Held by VM	Used to access Key Vault
Access Status	No access	Request sent	Token valid	Access granted	Secrets retrieved

Key Moments - 3 Insights

Why doesn't the VM need to store any passwords or secrets?

Because Azure automatically manages the identity and token issuance, the VM never handles or stores credentials directly, as shown in steps 2 to 4 in the execution_table.

What ensures that only the VM with the managed identity can get the token?

Azure AD validates the VM's identity before issuing a token (step 3), ensuring only the authorized resource receives the token.

How does the VM use the token to access other services?

The VM includes the token in its request to the service (step 5), and the service grants access based on token validity.

Visual Quiz - 3 Questions

Look at the execution_table, what happens at step 3?

A Azure AD validates VM identity and issues token

B VM requests token from Azure AD

C VM accesses Key Vault secrets

D VM is created with managed identity

💡 Hint

Check the 'Action' and 'Result' columns for step 3 in execution_table

At which step does the VM receive the token?

A Step 2

B Step 3

C Step 4

D Step 5

💡 Hint

Look for 'Token received' in the 'Request/Response' column in execution_table

If the VM identity was not validated, what would change in the execution_table?

A Token would still be issued

B Token would not be issued and access denied

C Access to Key Vault would be granted anyway

D VM creation would fail

💡 Hint

Refer to step 3 where validation leads to token issuance

Concept Snapshot

Managed identities let Azure resources get tokens automatically.
No need to store passwords or secrets.
Azure AD validates and issues tokens.
Tokens let resources access other Azure services securely.
Use system-assigned or user-assigned identities.
Simplifies secure service-to-service communication.

Full Transcript

Managed identities in Azure allow resources like virtual machines to access other Azure services securely without storing credentials. When a resource is created with a managed identity enabled, Azure assigns it an identity. The resource then requests a token from Azure Active Directory (Azure AD). Azure AD validates the identity and issues a token. The resource uses this token to access services such as Azure Key Vault. This process removes the need for manual credential management and improves security by using tokens that Azure manages automatically.