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What are the benefits of using Managed Identity over storing credentials directly


Using Managed Identity in Azure offers several benefits over storing credentials directly in application code:

1. Improved Security: Managed Identities eliminate the need to store credentials, such as passwords or connection strings, within the application code. This significantly reduces the risk of credential leaks and exposure, as the credentials are not even accessible to developers or administrators[1][2][3].

2. Simplified Credential Management: Azure automatically manages the lifecycle of Managed Identities, including creation, rotation, and deletion of credentials. This removes the burden of manual credential management, reducing the risk of human error and the need for frequent secret rotations[3][5].

3. Enhanced Authentication: Managed Identities can authenticate to any Azure resource that supports Azure AD authentication. By assigning appropriate roles via Azure RBAC, you can control access to resources without needing to manage credentials manually[1][2][3].

4. Cost Efficiency: There are no additional charges for using Managed Identities, making them a cost-effective solution for managing credentials[1][2][7].

5. Granular Access Control: Managed Identities support role-based access control (RBAC), allowing for fine-grained permissions management. This ensures that resources are accessed securely and with the appropriate level of access[3][5].

6. Reduced Risk of Compromise: Even if an attacker gains access to the application environment, they cannot exploit the credentials since they are not stored or accessible within the code[5].

Overall, Managed Identities provide a secure, efficient, and scalable way to manage access to Azure resources without the risks associated with storing credentials directly in code.

Citations:
[1] https://www.varonis.com/blog/azure-managed-identities
[2] https://azure-training.com/2022/01/05/what-are-managed-identities-for-azure-resources/
[3] https://www.techtarget.com/searchcloudcomputing/tip/Managed-identity-vs-service-principal-for-Azure-apps
[4] https://sqlkover.com/why-managed-identities-are-awesome/
[5] https://stackoverflow.com/questions/61069046/why-should-i-use-managed-identity
[6] https://learn.microsoft.com/en-us/entra/identity/managed-identities-azure-resources/overview-for-developers
[7] https://learn.microsoft.com/en-us/entra/identity/managed-identities-azure-resources/overview
[8] https://docs.azure.cn/en-us/entra/identity/managed-identities-azure-resources/managed-identity-best-practice-recommendations
[9] https://www.linkedin.com/pulse/what-managed-identities-azure-resources-sardar-mudassar-ali-khan-
[10] https://www.youtube.com/watch?v=evhkGWSwQIA