azure-identity-msi

name	azure-identity-msi
description	Time Saved: 1-2 hours debugging identity and RBAC
lastReviewed	2026-04-30T00:00:00.000Z

Azure Managed Identity (MSI) Concepts

Category: Azure Time Saved: 1-2 hours debugging identity and RBAC Battle-tested: Yes — multiple Azure deployments

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The Problem

You're configuring RBAC for an Azure resource's managed identity. You see principalId in one place, servicePrincipal in another, and objectId elsewhere. Documentation uses these terms interchangeably and you're not sure if they're the same thing.

Why It's Confusing

A Managed Identity is a Service Principal — they're the same object viewed from different angles:

• Managed Identity: The Azure resource perspective ("my VM has an identity")
• Service Principal: The Entra ID perspective ("there's an app registration")
• Principal ID / Object ID: The unique identifier (same value, different names)

The Rule

A Managed Identity IS a Service Principal in Entra ID. The principalId from the resource matches the Service Principal's Object ID in role assignments.

Identity Flow

Azure Resource (VM, Function, Container App)
        │
        ▼ creates
Managed Identity
        │
        ▼ which IS
Service Principal in Entra ID
        │
        ▼ gets assigned
RBAC Role on Target Resource

Verification Pattern

When debugging RBAC issues, verify the chain:

Step 1: Get principalId from Source Resource

# For a Container App
az containerapp show \
  --name myapp \
  --resource-group myrg \
  --query identity.principalId

# For a Function App
az functionapp show \
  --name myfunc \
  --resource-group myrg \
  --query identity.principalId

# For a VM
az vm show \
  --name myvm \
  --resource-group myrg \
  --query identity.principalId

Step 2: Verify Service Principal Exists

# The principalId should match an SP's objectId
az ad sp show --id <principalId> --query objectId

Step 3: Check Role Assignments on Target

# List role assignments on the target resource
az role assignment list \
  --scope /subscriptions/{sub}/resourceGroups/{rg}/providers/{provider}/{resource} \
  --query "[].{principal:principalId,role:roleDefinitionName}"

Step 4: Confirm Match

# Principal from resource should appear in role assignments
# with the expected role (Reader, Contributor, etc.)

Common RBAC Roles

Role	When to Use
Reader	Read-only access to resources
Contributor	Full access except RBAC management
Owner	Full access including RBAC
Storage Blob Data Reader	Read blobs (not just management)
Key Vault Secrets User	Read secrets from Key Vault

Note: Management roles (Reader, Contributor) don't grant data plane access. For blob storage, you need "Storage Blob Data *" roles.

Assignment Script

# Assign role to managed identity
PRINCIPAL_ID=$(az containerapp show \
  --name myapp \
  --resource-group myrg \
  --query identity.principalId -o tsv)

az role assignment create \
  --assignee-object-id $PRINCIPAL_ID \
  --assignee-principal-type ServicePrincipal \
  --role "Storage Blob Data Reader" \
  --scope /subscriptions/{sub}/resourceGroups/{rg}/providers/Microsoft.Storage/storageAccounts/{account}

System vs User Assigned

Type	Creation	Lifecycle	Use Case
System-assigned	With resource	Deleted with resource	Single-resource identity
User-assigned	Separately	Independent	Shared across resources

# Enable system-assigned identity
az containerapp identity assign \
  --name myapp \
  --resource-group myrg \
  --system-assigned

# Create user-assigned identity
az identity create \
  --name myidentity \
  --resource-group myrg

# Assign user-assigned to resource
az containerapp identity assign \
  --name myapp \
  --resource-group myrg \
  --user-assigned myidentity

Verification Checklist

• Resource has managed identity enabled
• principalId is populated (not null)
• Service Principal exists in Entra ID
• Role assignment exists on target resource
• Correct role (data plane vs management plane)
• Role assigned at correct scope

Common Symptoms

• "Authorization failed" after enabling managed identity
• Role assignment exists but access denied
• "Principal does not exist" in role assignment
• Works with Contributor, fails with custom role

Related Skills

• azure-subscription-context — Subscription issues
• azure-swa-gotchas — SWA-specific identity issues