Machine authentication with HashiCorp Vault using Azure managed identity and Microsoft Azure managed identity is a crucial approach to mitigate credential exposure risks. The Azure auth method supports both system-assigned and user-assigned identities, enabling workloads to obtain their bearer tokens and exchange them for a Vault token upon verification of the bearer token's validity. To set up this workflow, an Azure application registration for Vault needs to be created using Terraform, followed by enabling the Azure auth method in Vault and configuring the auth backend with connectivity details from the Azure subscription. A role per workload is then created on Vault, scoped to the level of secret access that each workload requires. The complete configuration can be achieved by using a combination of Terraform modules, including the app-vault and azure-auth-method modules, which automate the setup and configuration of Azure managed identities for authentication to Vault.