When you assign an identity to an Azure VM, a managed identity resource will be created in Microsoft Azure AD. Managed identities provide secure credentials for authenticating to Azure services.
When you assign an identity to an Azure virtual machine (VM), a managed identity resource will be automatically created in Microsoft Azure AD. Managed identities are a feature in Azure that provide secure credentials for authenticating to Azure services. They eliminate the need for developers to store credentials within their code.
By assigning an identity to the VM, you can use this identity to authenticate and access other Azure resources without the need to manage and store explicit credentials.
For example, if you want VM1 to access an Azure storage account, you can grant the managed identity of VM1 appropriate permissions on the storage account. This way, the VM can interact with the storage account without the need for storing and managing explicit storage account credentials.