Create server configured with user-assigned managed identity and cross-tenant CMK for TDE

1. Browse to the Select SQL deployment option page in the Azure portal.

2. If you aren't already signed in to Azure portal, sign in when prompted.

3. Under SQL databases, leave Resource type set to Single database, and select Create.

4. On the Basics tab of the Create SQL Database form, under Project details, select the desired Azure Subscription.

5. For Resource group, select Create new, enter a name for your resource group, and select OK.

6. For Database name enter a database name. For example, ContosoHR.

7. For Server, select Create new, and fill out the New server form with the following values:

   • Server name: Enter a unique server name. Server names must be globally unique for all servers in Azure, not just unique within a subscription. Enter something like mysqlserver135, and the Azure portal will let you know if it's available or not.
   • Server admin login: Enter an admin login name, for example: azureuser.
   • Password: Enter a password that meets the password requirements, and enter it again in the Confirm password field.
   • Location: Select a location from the dropdown list

8. Select Next: Networking at the bottom of the page.

9. On the Networking tab, for Connectivity method, select Public endpoint.

10. For Firewall rules, set Add current client IP address to Yes. Leave Allow Azure services and resources to access this server set to No. The rest of the selections on this page can be left as default.

    

11. Select Next: Security at the bottom of the page.

12. On the Security tab, under Identity, select Configure Identities.

    

13. On the Identity menu, select Off for System assigned managed identity and then select Add under User assigned managed identity. Select the desired Subscription and then under User assigned managed identities, select the desired user-assigned managed identity from the selected subscription. Then select the Add button.

14. Under Primary identity, select the same user-assigned managed identity selected in the previous step.

    

15. For Federated client identity, select the Change identity option, and search for the multi-tenant application that you created in the Prerequisites.

    

    Note

    If the multi-tenant application hasn't been added to the key vault access policy with the required permissions (Get, Wrap Key, Unwrap Key), using this application for identity federation in the Azure portal will show an error. Make sure that the permissions are configured correctly before configuring the federated client identity.

16. Select Apply

17. On the Security tab, under Transparent data encryption, select Configure transparent data encryption. Select Customer-managed key, and an option to Enter a key identifier will appear. Add the Key Identifier obtained from the key in the second tenant.

    

18. Select Apply

19. Select Review + create at the bottom of the page

20. On the Review + create page, after reviewing, select Create.

For information on installing the current release of Azure CLI, see Install the Azure CLI article.

Create a server configured with user-assigned managed identity and cross-tenant customer-managed TDE using the az sql server create command. The Key Identifier from the second tenant can be used in the key-id field. The Application ID of the multi-tenant application can be used in the federated-client-id field.

az sql server create \
    --name $serverName \
    --resource-group $resourceGroupName \
    --location $location  \
    --admin-user $adminlogin \
    --admin-password $password \
    --assign-identity \
    --identity-type $identitytype \
    --user-assigned-identity-id $identityid \
    --primary-user-assigned-identity-id $primaryidentityid \
    --key-id $keyid \
    --federated-client-id $federatedid
 

Create a database with the az sql db create command.

az sql db create \
    --resource-group $resourceGroupName \
    --server $serverName \
    --name mySampleDatabase \
    --sample-name AdventureWorksLT \
    --edition GeneralPurpose \
    --compute-model Serverless \
    --family Gen5 \
    --capacity 2

Create a server configured with user-assigned managed identity and cross-tenant customer-managed TDE using PowerShell.

For Az PowerShell module installation instructions, see Install Azure PowerShell. For specific cmdlets, see AzureRM.Sql.

Use the New-AzSqlServer cmdlet.

Replace the following values in the example:

• <ResourceGroupName>: Name of the resource group for your Azure SQL logical server
• <Location>: Location of the server, such as China North 3
• <ServerName>: Use a unique Azure SQL logical server name
• <ServerAdminName>: The SQL Administrator login
• <ServerAdminPassword>: The SQL Administrator password
• <IdentityType>: Type of identity to be assigned to the server. Possible values are SystemAssigned, UserAssigned, SystemAssigned,UserAssigned and None
• <UserAssignedIdentityId>: The list of user-assigned managed identities to be assigned to the server (can be one or multiple)
• <PrimaryUserAssignedIdentityId>: The user-assigned managed identity that should be used as the primary or default on this server
• <CustomerManagedKeyId>: The Key Identifier from the second tenant Key Vault
• <FederatedClientId>: The Application ID of the multi-tenant application

To get your user-assigned managed identity Resource ID, search for Managed Identities in the Azure portal. Find your managed identity, and go to Properties. An example of your UMI Resource ID looks like /subscriptions/<subscriptionId>/resourceGroups/<ResourceGroupName>/providers/Microsoft.ManagedIdentity/userAssignedIdentities/<managedIdentity>

# create a server with user-assigned managed identity and cross-tenant customer-managed TDE
$params = @{
    ResourceGroupName = "<ResourceGroupName>"
    Location = "<Location>"
    ServerName = "<ServerName>"
    ServerVersion = "12.0"
    SqlAdministratorCredentials = (Get-Credential)
    SqlAdministratorLogin = "<ServerAdminName>"
    SqlAdministratorPassword = "<ServerAdminPassword>"
    AssignIdentity = $true
    IdentityType = "<IdentityType>"
    UserAssignedIdentityId = "<UserAssignedIdentityId>"
    PrimaryUserAssignedIdentityId = "<PrimaryUserAssignedIdentityId>"
    KeyId = "<CustomerManagedKeyId>"
    FederatedClientId = "<FederatedClientId>"
}

New-AzSqlServer @params

Here's an example of an ARM template that creates an Azure SQL logical server with a user-assigned managed identity and customer-managed TDE. For a cross-tenant CMK, use the Key Identifier from the second tenant Key Vault, and the Application ID from the multi-tenant application.

The template also adds a Microsoft Entra admin set for the server and enables Microsoft Entra-only authentication, but this can be removed from the template example.

For more information and ARM templates, see Azure Resource Manager templates for Azure SQL Database & SQL Managed Instance.

Use a Custom deployment in the Azure portal, and Build your own template in the editor. Next, Save the configuration once you pasted in the example.

To get your user-assigned managed identity Resource ID, search for Managed Identities in the Azure portal. Find your managed identity, and go to Properties. An example of your UMI Resource ID looks like /subscriptions/<subscriptionId>/resourceGroups/<ResourceGroupName>/providers/Microsoft.ManagedIdentity/userAssignedIdentities/<managedIdentity>.

{
    "$schema": "https://schema.management.azure.com/schemas/2019-04-01/deploymentTemplate.json#",
    "contentVersion": "1.0.0.1",
    "parameters": {
        "server": {
            "type": "String"
        },
        "location": {
            "type": "String"
        },
        "aad_admin_name": {
            "type": "String",
            "metadata": {
                "description": "The name of the Azure AD admin for the SQL server."
            }
        },
        "aad_admin_objectid": {
            "type": "String",
            "metadata": {
                "description": "The Object ID of the Azure AD admin."
            }
        },
        "aad_admin_tenantid": {
            "type": "String",
            "defaultValue": "[subscription().tenantId]",
            "metadata": {
                "description": "The Tenant ID of the Azure Active Directory"
            }
        },
        "aad_admin_type": {
            "defaultValue": "User",
            "allowedValues": [
                "User",
                "Group",
                "Application"
            ],
            "type": "String"
        },
        "aad_only_auth": {
            "defaultValue": true,
            "type": "Bool"
        },
        "user_identity_resource_id": {
            "defaultValue": "",
            "type": "String",
            "metadata": {
                "description": "The Resource ID of the user-assigned managed identity."
            }
        },
        "federated_clientid": {
            "defaultValue": "",
            "type": "String",
            "metadata": {
                "description": "The Application ID of the multi-tenant application."
            }
        },
        "keyvault_url": {
            "defaultValue": "",
            "type": "String",
            "metadata": {
                "description": "The key vault URI."
            }
        },
        "AdminLogin": {
            "minLength": 1,
            "type": "String"
        },
        "AdminLoginPassword": {
            "type": "SecureString"
        }
    },
    "resources": [
        {
            "type": "Microsoft.Sql/servers",
            "apiVersion": "2022-05-01-preview",
            "name": "[parameters('server')]",
            "location": "[parameters('location')]",
            "identity": {
                "type": "UserAssigned",
                "UserAssignedIdentities": {
                    "[parameters('user_identity_resource_id')]": {}
                }
            },
            "properties": {
                "administratorLogin": "[parameters('AdminLogin')]",
                "administratorLoginPassword": "[parameters('AdminLoginPassword')]",
                "PrimaryUserAssignedIdentityId": "[parameters('user_identity_resource_id')]",
                "federatedClientId": "[parameters('federated_clientid')]",
                "KeyId": "[parameters('keyvault_url')]",
                "administrators": {
                    "login": "[parameters('aad_admin_name')]",
                    "sid": "[parameters('aad_admin_objectid')]",
                    "tenantId": "[parameters('aad_admin_tenantid')]",
                    "principalType": "[parameters('aad_admin_type')]",
                    "azureADOnlyAuthentication": "[parameters('aad_only_auth')]"
                }
            }
        }
    ]
}