> ## Documentation Index > Fetch the complete documentation index at: https://notes.kodekloud.com/llms.txt > Use this file to discover all available pages before exploring further. # Managed Identity Authentication Flow > This article explores the managed identity authentication flow with Azure Virtual Machines and how it enables secure resource access. In this article, we explore how a system-assigned managed identity functions with an Azure Virtual Machine. While the process is nearly identical for a user-assigned managed identity, note that user-assigned identities are standalone resources that must be created before use. User-assigned managed identities are created independently and can be associated with multiple resources. ## How It Works The managed identity authentication flow involves several key steps: 1. **Enable Managed Identity**\ Azure Resource Manager (ARM) receives a request to enable a system-assigned managed identity on a virtual machine (or any resource that supports managed identities). 2. **Service Principal Creation**\ Once enabled, a service principal is automatically generated in Microsoft Entra ID (formerly Azure Active Directory) for the virtual machine’s identity. 3. **VM Configuration Update**\ ARM configures the virtual machine by updating the Azure Instance Metadata Service with the newly created service principal's client ID and certificate. 4. **Resource Access Provisioning**\ With the virtual machine now equipped with an identity, the service principal can be used to grant access to additional Azure resources. 5. **Token Request**\ The code running on the virtual machine requests an access token from the Azure Instance Metadata Service endpoint, which is accessible only internally. 6. **JWT Acquisition**\ The access token is then used to contact Microsoft Entra ID to retrieve a JSON Web Token (JWT) using the pre-configured client ID and certificate. 7. **Resource Access**\ Finally, your application sends the JWT to services that support Microsoft Entra Authentication—such as [Azure Key Vault](https://learn.microsoft.com/en-us/azure/key-vault/) or [Azure Blob Storage](https://learn.microsoft.com/en-us/azure/storage/blobs/)—to access the required resources. ## Configuring Managed Identity To configure the identity, navigate to the [Azure Portal](https://portal.azure.com). In this example, we demonstrate the process using a Function App; however, the same configuration applies to any Azure resource that supports managed identities. This streamlined process ensures a secure and automated approach to managing resource access in the Azure ecosystem.