Medium1 markMultiple Choice
Domain 1.4: Application IdentitiesDomain 1Managed IdentityKey VaultSecurity

AZ-305 · Question 14 · Domain 1.4: Application Identities

You are designing an application architecture where an application running on an Azure Virtual Machine needs to retrieve database connection strings securely from Azure Key Vault.

The security team mandates that no credentials or secrets used to authenticate to the Key Vault can be stored in the VM's code or configuration files. The identity used must be tied to the lifecycle of the VM.

Which identity solution should you use?

Answer options:

A.

User-assigned Managed Identity

B.

System-assigned Managed Identity

C.

Service Principal with a client secret

D.

Service Principal with a certificate

How to approach this question

Differentiate between System-assigned (tied to resource lifecycle) and User-assigned (independent lifecycle) managed identities.

Full Answer

B.System-assigned Managed Identity✓ Correct
Managed identities eliminate the need for developers to manage credentials. A System-assigned managed identity is tied directly to the Azure resource (in this case, the VM). When the VM is deleted, the identity is automatically cleaned up. A User-assigned managed identity is created as a standalone Azure resource and has its own lifecycle, meaning it persists even if the VM is deleted.

Common mistakes

Confusing system-assigned and user-assigned identities. Remember: System = 1:1 relationship with resource lifecycle. User = 1:Many relationship, independent lifecycle.

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