Glossary
Managed identity
An Entra ID identity managed by Azure for a resource such as a VM or app, obtained through a local token endpoint without any secret in code.
A managed identity is a service principal whose credentials Azure manages. System-assigned identities are tied to one resource; user-assigned identities are standalone and can be attached to several. Code on the resource obtains tokens from a local endpoint — on a VM, the Instance Metadata Service.
In Activity Log, Key Vault and storage logs, a managed identity's token carries an xms_mirid claim with the resource ID it belongs to. Microsoft notes that all code running on a VM can obtain tokens for its managed identities (Microsoft Learn), so code execution means identity theft.