Using manage service identity is an easy to configure, out of the box, functionality that ups your level of security within your organization.

Having an Azure Function exposed using Azure API management is very easy. So easy in fact that I will not address it here, but here is a good source if you need to know it, and here is a very basic one. In some cases, the level of security given by the Function’s out of the box functionality is too low. Just having a “code” to protect the function is not enough in my opinion. Especially since it is so easy to set this up. This post provides a walkthrough for using built-in functionality for Managed Service Identity (or MSI for short). As always, I try to show this in a simple, just make it work, way.

# What is an MSI?

But I still need to explain the basics of an MSI. You want a service or a process to have an account, a way of showing its “identity” and you want that identity to be protected, but you do not want to handle (and send) passwords everywhere. This is where the Managed Service Identity comes into play. It is connected to the Azure AD, but the actual authentication is handled by Azure. You never need to send credentials. The authentication, and authenticity of the service is handled by Azure AD.

Looking at the concrete stuff, the MSI is an Enterprise Application in your AAD, viable only for that service instance.

## Using MSI for other integration services

This “built-in” functionality means that you can use this way of securing not only functions but Logic Apps and Azure Service Bus as well. The service bus even allows you to combine it with RBAC.
Here is some documentation for securing Logic Apps in (almost) the same way, and here is a great post on how to setup MSI for Azure Service Bus.

# What we need to make it work

1. Your APIm instance must have a “Managed Identity” configured.
2. Your function must have “Authentication” configured.
3. The APIm has an updated policy.
4. A successful test.

# 1: The APIm MSI

You can set that up using this documentation. Note that the screen capture in that post is a bit dated, but all the names are the same. I suggest you use System Assigned as the User Assigned is (still) in preview.

# 2: Configure Authentication for your function

This is easy but requires a couple of steps.

## Find the authentication setting

In the left menu, you can find it under Settings.

## Update Authentication Settings

Find and click Add Provider. This will setup everything you need.

Start by selecting Microsoft from the dropdown. Note that there are other IdP:s.

Fill in the rest according to this:

The name is up to you. I would just like to add that you should use an environment identifier in there somewhere.
Make sure you select 401 under Unauthenticated requests, the click Add to complete the configuration.

Back at the Authentication page, you can see that Azure created an Identity for your function. The App (client) ID will be used later. Note that you can only have one identity per Azure Function App. Every function in the App will be protected the same way.

# 3: The APIm Policy

We now have everything we need and can add the policy the APIm. This policy basically states that we would like to authenticate to a particular App ID using Managed Identity.

Open the Policy you need to update and add this before calling the function, in the inbound policy.

<authentication-managed-identity resource="e23a1800-0000-0000-0000-00000009a0" output-token-variable-name="msi-access-token" ignore-error="false" />
<value>@("Bearer " + (string)context.Variables["msi-access-token"])</value>