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Key Vault & Managed HSM

Standard vs Premium · Managed HSM · Cloud HSM · RBAC · Soft delete · Purge protection

Practice questions for this topic →

Pick the tier

OptionKeys protected byTenancyPick when…
Key Vault StandardSoftwareMultitenantSecrets, certificates, software keys
Key Vault PremiumHSM-backed keys (FIPS 140-2 Level 2)Multitenant HSMsHSM protection at low cost
Managed HSMDedicated HSM pool (FIPS 140-2 Level 3)Single tenant; you control the security domainSingle-tenant HSM with full key control
Azure Cloud HSMCustomer-owned cluster of three HSM nodes (FIPS 140-3 Level 3), PKCS#11 and moreSingle tenant, customer-administeredLift-and-shift HSM apps; successor to Azure Dedicated HSM
Azure Dedicated HSM (retiring)Thales Luna appliances (FIPS 140-2 Level 3)Single tenantRetiring: full support until Jul 31, 2028, no new onboardings. Existing key material can't be migrated, so create new keys

Protection features

FeatureBehavior
Soft deleteDeleted objects recoverable 7–90 days (on by default; can't be disabled)
Purge protectionNobody can purge before retention ends; once enabled it can't be turned off (required for customer-managed keys)
RBAC modelRecommended; default for new vaults from API 2026-02-01; only Owner and User Access Administrator can grant access
Access policies (legacy)Anyone with Contributor or vault write can grant themselves data access
Private endpoint + firewallDisable public access

Managed HSM recovery

Exam Tips

Tick each tip once you can answer it without looking.

“Prevent a malicious admin from permanently deleting keys” → Enable purge protection. Trap: Soft delete alone still allows purge.

“Contributors must not be able to grant themselves secret access” → Use the Azure RBAC permission model. Trap: Access policies allow this escalation.

“Single-tenant, FIPS 140 Level 3 HSM with customer-controlled security domain” → Managed HSM.

“HSM-protected keys at the lowest cost” → Key Vault Premium.

“Customer-managed keys for Storage/SQL encryption” → Key Vault or Managed HSM with soft delete + purge protection; access via managed identity.

“Rotate certificates automatically” → Key Vault certificate auto-renewal with integrated CA / key rotation policy.

“Separate vault per app per environment” → Recommended: limits blast radius and access scope.

“Get notified when secrets are near expiry” → Key Vault events via Event Grid (SecretNearExpiry).

“Azure Dedicated HSM” → Retiring: full support until Jul 31, 2028, no new onboardings; move to Azure Cloud HSM or Managed HSM. Trap: Existing Thales Luna key material can't be migrated, so create new keys.

“Azure Cloud HSM” → Single-tenant, FIPS 140-3 Level 3, customer-owned cluster of three HSM nodes, supports PKCS#11. Trap: Managed HSM is FIPS 140-2 Level 3; multitenant Key Vault is Level 2.

Sources

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