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Managed Identities & App Identity

System-assigned · User-assigned · Service principals · Workload identity federation

Practice questions for this topic →

Which kind of identity?

ScenarioRecommendation
Several resources need the same permissionsUser-assigned (one identity, fewer role assignments)
Role assignments must exist before the resource is deployedUser-assigned
Rapidly creating many resources (avoid HTTP 429 on Entra object creation)User-assigned
Identity must be deleted with the resource or be unique per resourceSystem-assigned
Code running outside Azure (GitHub Actions, any Kubernetes, another cloud)Workload identity federation: no stored secret
On-prem server needs an Azure identityAzure Arc-enabled server managed identity

Facts to know

Exam Tips

Tick each tip once you can answer it without looking.

“App on Azure must read Key Vault secrets without storing any credentials” → Managed identity + RBAC role on Key Vault.

“Twenty VMs need the same access, minimize administration” → One user-assigned managed identity.

“Identity lifecycle tied to the VM; deleted when VM is deleted” → System-assigned managed identity.

“GitHub Actions deploys to Azure without a client secret” → Workload identity federation (OIDC) on an app registration / user-assigned MI.

“AKS pods access Azure resources without secrets” → Microsoft Entra Workload ID.

“Third-party SaaS must call your API” → App registration (service principal) with certificate credential. Trap: Managed identities only work for Azure-hosted code.

“Least privilege for a managed identity” → Assign the narrowest built-in role at the smallest scope.

“System-assigned identity lifecycle” → A service principal tied to the resource, deleted with it, usable only by that resource, named after it. Trap: A deployment slot's identity is /slots/.

“Cost and credentials of managed identities” → No extra cost; you can't see or handle the credentials. Trap: They replace keys, passwords and certificates for service-to-service access.

“Workload identity federation” → An identity trusts tokens from an external IdP (GitHub, Kubernetes, Google); the workload swaps them for Entra tokens. Trap: No secret or certificate to store or rotate.

“Workload outside Azure needs Azure access without secrets” → Workload identity federation. Trap: Managed identities exist only for Azure-hosted resources.

Sources

← External IdentitiesAccess to On-Premises Resources →