Definition
A managed identity provides an Azure Active Directory identity for an application or service, eliminating the need for developers to manage credentials. This identity allows the application to authenticate to any service that supports Azure AD authentication, such as Azure Key Vault or Azure SQL Database, without embedding secrets or connection strings. Managed identities simplify security by automatically rotating credentials and ensuring that only authorized applications can access resources. For instance, a web application can use its managed identity to retrieve secrets from Key Vault for database connections. Unlike service principals which require manual credential management, managed identities handle this automatically. This concept is fundamental for cloud security and appears on exams like Security+, CySA+, and CISSP.