Microsoft Security, Compliance, and Identity Fundamentals SC-900 Practice Question

A managed identity is a special type of service principal that Microsoft Entra ID creates and manages for an Azure resource such as a virtual machine, container app, or function. The resource can use the managed identity to request Azure AD access tokens at runtime and securely authenticate to other Azure services like Azure Key Vault, removing the need to store credentials in code or configuration. User identities and guest users represent people, while device identities represent hardware that is joined to Entra ID. None of those provide the built-in credential management that managed identities offer for workload authentication.