There’s a relative new feature available in Azure called Managed Service Identity. What it does is create an identity for a service instance in the Azure AD tenant, which in its turn can be used to access other resources within Azure. This is a great feature, because now you don’t have to maintain and create identities for your applications by yourself anymore. All of this management is handled for you when using a System Assigned Identity. There’s also an option to use User Assigned Identities which work a bit different.

Because I’m an Azure Function fanboy and want to store my secrets within Azure Key Vault, I was wondering if I was able to configure MSI via an ARM template and access the Key Vault from an Azure Function without specifying an identity by myself.

As most of the things, setting this up is rather easy, once you know what to do.

The ARM template

The documentation states you can add an identity property to your Azure App Service in order to enable MSI.

"identity": {
    "type": "SystemAssigned"
}

This setting is everything you need in order to create a new service principal (identity) within the Azure Active Directory. This new identity has the exact same name as your App Service, so it should be easy to identify.