In today’s cloud-centric environment, safeguarding sensitive data like API keys, connection strings, certificates, and cryptographic keys is a critical aspect of any secure application architecture. Azure Key Vault is Microsoft’s enterprise-grade tool designed to securely store and tightly control access to secrets and keys across cloud services.
Whether you’re a DevOps engineer, cloud architect, developer, or security professional, knowing how to configure Azure Key Vault correctly is vital for maintaining compliance, achieving zero trust goals, and preventing unauthorised access.
In this tutorial, you’ll learn:
- What Azure Key Vault is and its core benefits.
- How to perform a step-by-step Azure Key Vault setup.
- How to configure access policies, integrate with Azure services, and follow Key Vault best practices.
- How to monitor and troubleshoot common issues.
What Azure Key Vault is and its core benefits.
Azure Key Vault is a cloud-based service offered by Microsoft Azure that allows you to securely store and manage sensitive information such as secrets (like passwords and API keys), cryptographic keys, and certificates. It is purpose-built for handling confidential data and streamlining access control across distributed cloud applications and services.
Core Components:
- Secrets – Store sensitive strings like database connection strings, passwords, and tokens.
- Keys – Manage cryptographic keys used for encryption and signing.
- Certificates – Store and manage SSL/TLS certificates.
- Access Policies / RBAC – Define who or what services can access which data in the vault.
Core Benefits of Azure Key Vault
| Benefit | Description |
|---|---|
| Centralised Secret Management | Consolidates storage of secrets, keys, and certificates across applications for better security and lifecycle control. |
| Enhanced Security | Secrets are encrypted using HSM-backed keys, and access is tightly controlled using RBAC or Access Policies. |
| Seamless Integration with Azure | Works natively with services like App Service, Azure Functions, and Azure Virtual Machines using Managed Identities—no need to embed credentials in code. |
| Scalability & High Availability | Fully managed and scalable with high availability SLAs and automatic redundancy across regions. |
| Automated Key Rotation | Supports policy-based automatic key and secret rotation for improved operational security. |
| Auditing & Compliance | Integrated with Azure Monitor and Azure Policy for tracking access and enforcing governance, helping meet compliance standards like ISO, PCI, and HIPAA. |
| Soft Delete & Purge Protection | Prevents accidental or malicious deletion of Key Vault and its contents with recoverable deletion capabilities. |
| Private Link Support | Ensures data traffic stays on Microsoft’s private backbone network, reducing exposure to the public internet. |
Step-by-Step Azure Key Vault Setup Guide
1. Prerequisites
Before diving into the Azure Key Vault tutorial, ensure you have the following:
- An active Azure Subscription: If you don’t have one, you can create a free account.
- Azure CLI or Azure PowerShell (Optional but Recommended): While most steps can be performed via the Azure Portal, using the CLI or PowerShell can streamline automation and provide more granular control for advanced scenarios. Ensure they are installed and configured if you plan to use them.
- Basic Understanding of Azure Concepts: Familiarity with Azure resources, resource groups, and the Azure Portal navigation will be beneficial.
2. Creating an Azure Key Vault
- Log in to the Azure Portal.
- In the top search bar, type “Key Vault” and select it.
- Click + Create.
- Provide the following information:
- Subscription: Choose your active subscription.
- Resource Group: Create or select an existing one.
- Key Vault Name: Must be globally unique.
- Region: Select the region closest to your users.
- Pricing Tier: Choose between Standard and Premium.
- Recovery: Select the recovery Options
- Click Review + create,
- Choose the Permission Model
- Then Create.
3. Configuring Access Policies
Azure Key Vault uses Access Policies or Role-Based Access Control (RBAC) to determine who can access or manage secrets, keys, and certificates.
To enable access to the Key Vault—for example, to read stored secrets—you may need to configure an access policy or assign the appropriate RBAC role. You can add an access policy by selecting “Access Policies” from the Key Vault’s navigation menu.
🔗 Learn more about configuring Azure Key Vault access policies
Next, we’ll create a new secret. In the Key Vault’s navigation menu, click on “Secrets” to begin.
To add a new access policy:
- Navigate to your Key Vault → Access Control (IAM).
- Click + Add Access Policy.
- Select the role assignment. In this example, I will select Key Vault Administrator.
Always make sure to select the less preivalge acces
- Under Members, select the users or managed identities that will be granted access to the Key Vault with the permissions defined in the previous step. You can choose individual user accounts or system-assigned/user-assigned managed identities.
- Then click Review + Assign
4. Adding Secrets to Azure Key Vault
Secrets can be anything from passwords to API keys.
To add a secret:
- Go to your Key Vault → Secrets → + Generate/Import.
- Fill in the Name and Value.
- (Optional) Set Activation and Expiration dates.
- Click Create.
5. Adding Keys to Azure Key Vault (Optional)
Use this if your application needs cryptographic operations.
- Navigate to Keys → + Generate/Import.
- Choose key type: RSA, RSA-HSM, or EC.
- Define size and activation/expiration settings.
- Click Create.
5. Integrating Azure Key Vault with Azure Services
Check out the Automate Update Primary Users on Intune article, which demonstrates how to integrate Azure Key Vault with Azure Automation.
6. Create a multiline Secret
Sometimes, you may need to store multilined secrets such as private keys, certificates, or configuration blocks. Azure Key Vault fully supports this use case, and you can easily handle it using Azure PowerShell.
In his detailed guide, Sean Bulger explains how to work with Azure Key Vault using PowerShell, including how to store multiline secrets: Working with Azure Key Vault in PowerShell
Here’s a quick Script of how to create a multiline secret using PowerShell:
Create MultiLine secretKey Vault Best Practices
To ensure your secrets stay protected and compliant, implement the following Key Vault best practices:
- Least Privilege: Only grant permissions required for the job.
- Use RBAC where possible over traditional access policies.
- Soft-delete and purge protection: Prevents accidental or malicious deletion.
- Enable logging and alerts: Monitor access and anomalous behaviour.
- Use Private Endpoints: Keep Key Vault traffic on the Azure backbone.
- Rotate secrets and keys regularly.
- Use Managed Identity for apps: Avoid embedding credentials.
Troubleshooting Common Issues
| Issue | Resolution |
|---|---|
| Access Denied Errors | Check that the principal has correct access policy or RBAC role. |
| Secret Not Found | Check that the principal has the correct access policy or RBAC role. |
| Key Vault Not Found | Ensure correct region/subscription and that Key Vault exists. |
| Permission Errors in App | Confirm that the managed identity is enabled and access is granted in Key Vault. |
Conclusion
Successfully implementing the Azure Key Vault setup is a fundamental step towards achieving a robust Azure security posture. By following this detailed Azure Key Vault tutorial, you’ve learned how to create a Key Vault, configure Azure Key Vault access policies, manage secrets and keys, and seamlessly integrate it with critical Azure services like App Service.
Embracing Key Vault best practices such as the Principle of Least Privilege, regular secret rotation, and leveraging Managed Identities, you can significantly enhance your cloud application security and streamline credential management. Remember to continuously monitor your Key Vault activities to detect and respond to any potential threats.
