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Azure Blog
External key management for Azure Managed HSM
Microsoft's Azure now offers external key management for its Managed HSM service, providing clients the option to keep key materials outside Azure's datacenters. This update is crucial for organizations with strict regulatory needs. It operates via an API that allows Azure applications to interact securely with keys stored on customer-controlled hardware, thereby enhancing security and compliance.
Act nowConfidence: HighShort term horizon
Published 7 Jul 2026, 18:01 UTC5 min read
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Summary
TL;DR
- External key management is now in public preview for Azure Managed HSM.
- Addresses regulatory requirements for key residency outside cloud environments.
- Allows customers to maintain control and ownership of encryption keys.
- Integration remains transparent for existing Azure applications using Managed HSM.
- Only mutual TLS secured connections will occur between Azure and customer hardware.
Interesting facts
- Managed HSM relies on FIPS 140-3 Level 3 validated HSM partitions.
- Availability and operational responsibility are transferred to the customer.
- A growing ecosystem of HSM vendors is supporting the integration.