Create server with Microsoft Entra-only authentication enabled in Azure SQL

Article
09/17/2024

Applies to: Azure SQL Database Azure SQL Managed Instance

This how-to guide outlines the steps to create a logical server for Azure SQL Database or an Azure SQL Managed Instance with Microsoft Entra-only authentication enabled during provisioning. The Microsoft Entra-only authentication feature prevents users from connecting to the server or managed instance using SQL authentication, and only allows connections authenticated with Microsoft Entra ID (formerly Azure Active Directory).

Note

Microsoft Entra ID was previously known as Azure Active Directory (Azure AD).

Prerequisites

Version 2.26.1 or later is needed when using The Azure CLI. For more information on the installation and the latest version, see Install the Azure CLI.
Az 6.1.0 module or higher is needed when using PowerShell.
If you're provisioning a managed instance using the Azure CLI, PowerShell, or REST API, a virtual network and subnet needs to be created before you begin. For more information, see Create a virtual network for Azure SQL Managed Instance.

Permissions

To provision a logical server or managed instance, you'll need to have the appropriate permissions to create these resources. Azure users with higher permissions, such as subscription Owners, Contributors, Service Administrators, and Co-Administrators have the privilege to create a SQL server or managed instance. To create these resources with the least privileged Azure RBAC role, use the SQL Server Contributor role for SQL Database and SQL Managed Instance Contributor role for SQL Managed Instance.

The SQL Security Manager Azure RBAC role doesn't have enough permissions to create a server or instance with Microsoft Entra-only authentication enabled. The SQL Security Manager role will be required to manage the Microsoft Entra-only authentication feature after server or instance creation.

Provision with Microsoft Entra-only authentication enabled

The following section provides you with examples and scripts on how to create a logical server or managed instance with a Microsoft Entra admin set for the server or instance, and have Microsoft Entra-only authentication enabled during server creation. For more information on the feature, see Microsoft Entra-only authentication with Azure SQL.

In our examples, we're enabling Microsoft Entra-only authentication during server or managed instance creation, with a system assigned server admin and password. This will prevent server admin access when Microsoft Entra-only authentication is enabled, and only allows the Microsoft Entra admin to access the resource. It's optional to add parameters to the APIs to include your own server admin and password during server creation. However, the password can't be reset until you disable Microsoft Entra-only authentication. An example of how to use these optional parameters to specify the server admin login name is presented in the PowerShell tab on this page.

Note

To change the existing properties after server or managed instance creation, other existing APIs should be used. For more information, see Managing Microsoft Entra-only authentication using APIs and Configure and manage Microsoft Entra authentication with Azure SQL.

If Microsoft Entra-only authentication is set to false, which it is by default, a server admin and password will need to be included in all APIs during server or managed instance creation.

Azure SQL Database

Browse to the Select SQL deployment option page in the Azure portal.
If you aren't already signed in to Azure portal, sign in when prompted.
Under SQL databases, leave Resource type set to Single database, and select Create.
On the Basics tab of the Create SQL Database form, under Project details, select the desired Azure Subscription.
For Resource group, select Create new, enter a name for your resource group, and select OK.
For Database name, enter a name for your database.
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 a value, and the Azure portal will let you know if it's available or not.
- Location: Select a location from the dropdown list
- Authentication method: Select Use Microsoft Entra-only authentication.
- Select Set admin, to open the Microsoft Entra ID pane and select a Microsoft Entra principal as your logical server Microsoft Entra administrator. When you're finished, use the Select button to set your admin.
Select Next: Networking at the bottom of the page.
On the Networking tab, for Connectivity method, select Public endpoint.
For Firewall rules, set Add current client IP address to Yes. Leave Allow Azure services and resources to access this server set to No.
Leave Connection policy and Minimum TLS version settings as their default value.
Select Next: Security at the bottom of the page. Configure any of the settings for Microsoft Defender for SQL, Ledger, Identity, and Transparent data encryption for your environment. You can also skip these settings.

Note

Using a user-assigned managed identity as the server identity is supported with Microsoft Entra-only authentication. To connect to the instance as the identity, assign it to an Azure Virtual Machine and run SSMS on that VM. For production environments, using a managed identity for the Microsoft Entra admin is recommended because of the enhanced, simplified security measures with password-less authentication to Azure resources.
Select Review + create at the bottom of the page.
On the Review + create page, after reviewing, select Create.

The Azure CLI command az sql server create is used to provision a new logical server. The below command will provision a new server with Microsoft Entra-only authentication enabled.

The server SQL administrator will be automatically created and the password will be set to a random password. Since SQL authentication connectivity is disabled with this server creation, the SQL administrator login won't be used.

The server Microsoft Entra admin will be the account you set for <MSEntraAccount>, and can be used to manage the server.

Replace the following values in the example:

<MSEntraAccount>: Can be a Microsoft Entra user or group. For example, DummyLogin
<MSEntraAccountSID>: The Microsoft Entra Object ID for the user
<ResourceGroupName>: Name of the resource group for your logical server
<ServerName>: Use a unique logical server name

az sql server create \
    --enable-ad-only-auth \
    --external-admin-principal-type User \
    --external-admin-name <MSEntraAccount> \
    --external-admin-sid <MSEntraAccountSID> \
    -g <ResourceGroupName> \
    -n <ServerName>

For more information, see az sql server create.

To check the server status after creation, see the following command:

az sql server show --name <ServerName> --resource-group <ResourceGroupName> --expand-ad-admin

The PowerShell command New-AzSqlServer is used to provision a new logical server. The below command will provision a new server with Microsoft Entra-only authentication enabled.

The server Microsoft Entra admin will be the account you set for <MSEntraAccount>, and can be used to manage the server.

Replace the following values in the example:

<ResourceGroupName>: Name of the resource group for your logical server
<Location>: Location of the server, such as West US, or Central US
<ServerName>: Use a unique logical server name
<MSEntraAccount>: Can be a Microsoft Entra user or group. For example, DummyLogin

$server = @{
    ResourceGroupName = "<ResourceGroupName>"
    Location = "<Location>"
    ServerName = "<ServerName>"
    ServerVersion = "12.0"
    ExternalAdminName = "<MSEntraAccount>"
    EnableActiveDirectoryOnlyAuthentication = $true
}

New-AzSqlServer @server

Here's an example of specifying the server admin name (instead of letting the server admin name being automatically created) at the time of logical server creation. As mentioned earlier, this login isn't usable when Microsoft Entra-only authentication is enabled.

$cred = Get-Credential
New-AzSqlServer -ResourceGroupName "<ResourceGroupName>" -Location "<Location>" -ServerName "<ServerName>" -ServerVersion "12.0" -ExternalAdminName "<MSEntraAccount>" -EnableActiveDirectoryOnlyAuthentication -SqlAdministratorCredentials $cred

For more information, see New-AzSqlServer.

The Servers - Create Or Update REST API can be used to create a logical server with Microsoft Entra-only authentication enabled during provisioning.

The script below will provision a logical server, set the Microsoft Entra admin as <MSEntraAccount>, and enable Microsoft Entra-only authentication. The server SQL administrator will also be created automatically and the password will be set to a random password. Since SQL authentication connectivity is disabled with this provisioning, the SQL administrator login won't be used.

The Microsoft Entra admin, <MSEntraAccount> can be used to manage the server when the provisioning is complete.

Replace the following values in the example:

<tenantId>: Can be found by going to the Azure portal, and going to your Microsoft Entra ID resource. In the Overview pane, you should see your Tenant ID
<subscriptionId>: Your subscription ID can be found in the Azure portal
<ServerName>: Use a unique logical server name
<ResourceGroupName>: Name of the resource group for your logical server
<MicrosoftEntraAccount>: Can be a Microsoft Entra user, group, or application. For example, DummyLogin
<Location>: Location of the server, such as westus2, or centralus
<objectId>: Can be found by going to the Azure portal, and going to your Microsoft Entra ID resource. In the User pane, search for the Microsoft Entra user and find their Object ID. If you're using an application (service principal) as the Microsoft Entra admin, replace this value with the Application ID. You will need to update the principalType as well.
<principalType>: One of three options: User, Group, Application. The type of the Microsoft Entra object used as the admin. Managed identities and service principals are Applications.

Import-Module Azure
Import-Module MSAL.PS

$tenantId = '<tenantId>'
$clientId = '1950a258-227b-4e31-a9cf-717495945fc2' # Static Microsoft client ID used for getting a token
$subscriptionId = '<subscriptionId>'
$uri = "urn:ietf:wg:oauth:2.0:oob" 
$authUrl = "https://login.windows.net/$tenantId"
$serverName = "<ServerName>"
$resourceGroupName = "<ResourceGroupName>"

Login-AzAccount -tenantId $tenantId

# login as a user with SQL Server Contributor role or higher 

# Get a token

$result = Get-MsalToken -RedirectUri $uri -ClientId $clientId -TenantId $tenantId -Scopes "https://management.core.windows.net/.default"

#Authetication header
$authHeader = @{
'Content-Type'='application\json; '
'Authorization'=$result.CreateAuthorizationHeader()
}

# Enable Microsoft Entra-only auth 
# No server admin is specified, Microsoft Entra admin is configured, and Microsoft Entra-only authentication is set to true
# Server admin (login and password) is randomly generated by the system

# Authentication body
# The sid is the Microsoft Entra Object ID for the user or group, and Application ID for applications. Update the principalType as well

$body = '{ 
"location": "<Location>",
"properties": { "administrators":{ "login":"<MSEntraAccount>", "sid":"<objectId>", "tenantId":"<tenantId>", "principalType":"User", "azureADOnlyAuthentication":true }
  }
}'

# Provision the server

Invoke-RestMethod -Uri https://management.azure.com/subscriptions/$subscriptionId/resourceGroups/$resourceGroupName/providers/Microsoft.Sql/servers/$serverName/?api-version=2020-11-01-preview -Method PUT -Headers $authHeader -Body $body -ContentType "application/json"

To check the server status, you can use the following script:

$uri = 'https://management.azure.com/subscriptions/'+$subscriptionId+'/resourceGroups/'+$resourceGroupName+'/providers/Microsoft.Sql/servers/'+$serverName+'?api-version=2020-11-01-preview&$expand=administrators/activedirectory'

$responce=Invoke-WebRequest -Uri $uri -Method PUT -Headers $authHeader -Body $body -ContentType "application/json"

$responce.statuscode

$responce.content

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

To provision a logical server with a Microsoft Entra admin set for the server and Microsoft Entra-only authentication enabled using an ARM Template, see our Azure SQL logical server with Microsoft Entra-only authentication quickstart template.

You can also use the following template. 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.

{
    "$schema": "https://schema.management.azure.com/schemas/2019-04-01/deploymentTemplate.json#",
    "contentVersion": "1.0.0.1",
    "parameters": {
        "server": {
            "type": "string",
            "defaultValue": "[uniqueString('sql', resourceGroup().id)]",
            "metadata": {
                "description": "The name of the logical server."
            }
        },
        "location": {
            "type": "string",
            "defaultValue": "[resourceGroup().location]",
            "metadata": {
                "description": "Location for all resources."
            }
        },
        "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 if the admin is a user or group. For Applications, use the Application ID."
            }
        },
        "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"
        }
    },
    "resources": [
        {
            "type": "Microsoft.Sql/servers",
            "apiVersion": "2020-11-01-preview",
            "name": "[parameters('server')]",
            "location": "[parameters('location')]",
            "properties": {
                "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')]"
                }
            }
        }
    ]
}

Azure SQL Managed Instance

Browse to the Select SQL deployment option page in the Azure portal.
If you aren't already signed in to Azure portal, sign in when prompted.
Under SQL managed instances, leave Resource type set to Single instance, and select Create.
Fill out the mandatory information required on the Basics tab for Project details and Managed Instance details. This is a minimum set of information required to provision a SQL Managed Instance.

For more information on the configuration options, see Quickstart: Create Azure SQL Managed Instance.
Under Authentication, select Use Microsoft Entra-only authentication for the Authentication method.
Select Set admin to open the Microsoft Entra ID pane and select a Microsoft Entra principal as your managed instance Microsoft Entra administrator. When you're finished, use the Select button to set your admin.
You can leave the rest of the settings default. For more information on the Networking, Security, or other tabs and settings, follow the guide in the article Quickstart: Create Azure SQL Managed Instance.
Once you're done with configuring your settings, select Review + create to proceed. Select Create to start provisioning the managed instance.

The Azure CLI command az sql mi create is used to provision a new Azure SQL Managed Instance. The below command will provision a new managed instance with Microsoft Entra-only authentication enabled.

Note

The script requires a virtual network and subnet be created as a prerequisite.

The managed instance SQL administrator will be automatically created and the password will be set to a random password. Since SQL authentication is disabled with this provision, the SQL admin won't be used.

The Microsoft Entra admin will be the account you set for <MSEntraAccount>, and can be used to manage the instance when the provisioning is complete.

Replace the following values in the example:

<MSEntraAccount>: Can be a Microsoft Entra user or group. For example, DummyLogin
<MSEntraAccountSID>: The Microsoft Entra Object ID for the user
<managedinstancename>: Name the managed instance you want to create
<ResourceGroupName>: Name of the resource group for your managed instance. The resource group should also include the virtual network and subnet created
The subnet parameter needs to be updated with the <Subscription ID>, <ResourceGroupName>, <VNetName>, and <SubnetName>. Your subscription ID can be found in the Azure portal

az sql mi create \
    --enable-ad-only-auth \
    --external-admin-principal-type User \
    --external-admin-name <MSEntraAccount> \
    --external-admin-sid <MSEntraAccountSID> \
    -g <ResourceGroupName> \
    -n <managedinstancename> \
    --subnet /subscriptions/<Subscription ID>/resourceGroups/<ResourceGroupName>/providers/Microsoft.Network/virtualNetworks/<VNetName>/subnets/<SubnetName>

For more information, see az sql mi create.

The PowerShell command New-AzSqlInstance is used to provision a new Azure SQL Managed Instance. The below command will provision a new managed instance with Microsoft Entra-only authentication enabled.

Note

The script requires a virtual network and subnet be created as a prerequisite.

The managed instance SQL administrator will be automatically created and the password will be set to a random password. Since SQL authentication connectivity is disabled with this provision, the SQL administrator login won't be used.

The Microsoft Entra admin will be the account you set for <MSEntraAccount>, and can be used to manage the instance when the provisioning is complete.

Replace the following values in the example:

<managedinstancename>: Name the managed instance you want to create
<ResourceGroupName>: Name of the resource group for your managed instance. The resource group should also include the virtual network and subnet created
<MSEntraAccount>: Can be a Microsoft Entra user or group. For example, DummyLogin
<Location>: Location of the server, such as West US, or Central US
The SubnetId parameter needs to be updated with the <Subscription ID>, <ResourceGroupName>, <VNetName>, and <SubnetName>. Your subscription ID can be found in the Azure portal

$instanceName = @{
    Name = "<managedinstancename>"
    ResourceGroupName = "<ResourceGroupName>"
    ExternalAdminName = "<MSEntraAccount>"
    EnableActiveDirectoryOnlyAuthentication = $true
    Location = "<Location>"
    SubnetId = "/subscriptions/<SubscriptionID>/resourceGroups/<ResourceGroupName>/providers/Microsoft.Network/virtualNetworks/<VNetName>/subnets/<SubnetName>"
    LicenseType = "LicenseIncluded"
    StorageSizeInGB = 128
    VCore = 4
    Edition = "GeneralPurpose"
    ComputeGeneration = "Gen5"
}

New-AzSqlInstance $instanceName

For more information, see New-AzSqlInstance.

The SQL Managed Instances - Create Or Update REST API can be used to create a managed instance with Microsoft Entra-only authentication enabled during provisioning.

Note

The script requires a virtual network and subnet be created as a prerequisite.

The script below will provision a managed instance, set the Microsoft Entra admin as <MSEntraAccount>, and enable Microsoft Entra-only authentication. The instance SQL administrator will also be created automatically and the password will be set to a random password. Since SQL authentication connectivity is disabled with this provisioning, the SQL administrator login won't be used.

The Microsoft Entra admin, <MSEntraAccount> can be used to manage the instance when the provisioning is complete.

Replace the following values in the example:

<tenantId>: Can be found by going to the Azure portal, and going to your Microsoft Entra ID resource. In the Overview pane, you should see your Tenant ID
<subscriptionId>: Your subscription ID can be found in the Azure portal
<instanceName>: Use a unique managed instance name
<ResourceGroupName>: Name of the resource group for your logical server
<MSEntraAccount>: Can be a Microsoft Entra user or group. For example, DummyLogin
<Location>: Location of the server, such as westus2, or centralus
<objectId>: Can be found by going to the Azure portal, and going to your Microsoft Entra ID resource. In the User pane, search for the Microsoft Entra user and find their Object ID. If you're using an application (service principal) as the Microsoft Entra admin, replace this value with the Application ID. You'll need to update the principalType as well.
The subnetId parameter needs to be updated with the <ResourceGroupName>, the Subscription ID, <VNetName>, and <SubnetName>

Import-Module Azure
Import-Module MSAL.PS

$tenantId = '<tenantId>'
$clientId = '1950a258-227b-4e31-a9cf-717495945fc2' # Static Microsoft client ID used for getting a token
$subscriptionId = '<subscriptionId>'
$uri = "urn:ietf:wg:oauth:2.0:oob" 
$instanceName = "<instanceName>"
$resourceGroupName = "<ResourceGroupName>"
$scopes ="https://management.core.windows.net/.default"

Login-AzAccount -tenantId $tenantId

# Login as an Microsoft Entra user with permission to provision a managed instance

$result = Get-MsalToken -RedirectUri $uri -ClientId $clientId -TenantId $tenantId -Scopes $scopes

$authHeader = @{
'Content-Type'='application\json; '
'Authorization'=$result.CreateAuthorizationHeader()
}

$body = '{
"name": "<instanceName>", "type": "Microsoft.Sql/managedInstances", "identity": { "type": "SystemAssigned"},"location": "<Location>", "sku": {"name": "GP_Gen5", "tier": "GeneralPurpose", "family":"Gen5","capacity": 8},
"properties": {"administrators":{ "login":"<MSEntraAccount>", "sid":"<objectId>", "tenantId":"<tenantId>", "principalType":"User", "azureADOnlyAuthentication":true },
"subnetId": "/subscriptions/<subscriptionId>/resourceGroups/<ResourceGroupName>/providers/Microsoft.Network/virtualNetworks/<VNetName>/subnets/<SubnetName>",
"licenseType": "LicenseIncluded", "vCores": 8, "storageSizeInGB": 2048, "collation": "SQL_Latin1_General_CP1_CI_AS", "proxyOverride": "Proxy", "timezoneId": "UTC", "privateEndpointConnections": [], "storageAccountType": "GRS", "zoneRedundant": false 
  }
}'

# To provision the instance, execute the `PUT` command

Invoke-RestMethod -Uri https://management.azure.com/subscriptions/$subscriptionId/resourceGroups/$resourceGroupName/providers/Microsoft.Sql/managedInstances/$instanceName/?api-version=2020-11-01-preview -Method PUT -Headers $authHeader -Body $body -ContentType "application/json"

To check the results, execute the GET command:

Invoke-RestMethod -Uri https://management.azure.com/subscriptions/$subscriptionId/resourceGroups/$resourceGroupName/providers/Microsoft.Sql/managedInstances/$instanceName/?api-version=2020-11-01-preview -Method GET -Headers $authHeader  | Format-List

To provision a new managed instance, virtual network and subnet, with a Microsoft Entra admin set for the instance and Microsoft Entra-only authentication enabled, use the following template.

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.

{
    "$schema": "https://schema.management.azure.com/schemas/2019-04-01/deploymentParameters.json#",
    "contentVersion": "1.0.0.1",
    "parameters": {
        "managedInstanceName": {
            "type": "String",
            "metadata": {
                "description": "Enter managed instance name."
            }
        },
        "aad_admin_name": {
            "type": "String",
            "metadata": {
                "description": "The name of the Azure AD admin for the SQL managed instance."
            }
        },
        "aad_admin_objectid": {
            "type": "String",
            "metadata": {
                "description": "The Object ID of the Azure AD admin. The Object ID of the Azure AD admin if the admin is a user or group. For Applications, use the Application ID."
            }
        },
        "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"
        },
        "location": {
            "defaultValue": "[resourceGroup().location]",
            "type": "String",
            "metadata": {
                "description": "Enter location. If you leave this field blank resource group location would be used."
            }
        },
        "virtualNetworkName": {
            "type": "String",
            "defaultValue": "SQLMI-VNET",
            "metadata": {
                "description": "Enter virtual network name. If you leave this field blank name will be created by the template."
            }
        },
        "addressPrefix": {
            "defaultValue": "10.0.0.0/16",
            "type": "String",
            "metadata": {
                "description": "Enter virtual network address prefix."
            }
        },
        "subnetName": {
            "type": "String",
            "defaultValue": "ManagedInstances",
            "metadata": {
                "description": "Enter subnet name. If you leave this field blank name will be created by the template."
            }
        },
        "subnetPrefix": {
            "defaultValue": "10.0.0.0/24",
            "type": "String",
            "metadata": {
                "description": "Enter subnet address prefix."
            }
        },
        "skuName": {
            "defaultValue": "GP_Gen5",
            "allowedValues": [
                "GP_Gen5",
                "BC_Gen5"
            ],
            "type": "String",
            "metadata": {
                "description": "Enter sku name."
            }
        },
        "vCores": {
            "defaultValue": 16,
            "allowedValues": [
                8,
                16,
                24,
                32,
                40,
                64,
                80
            ],
            "type": "Int",
            "metadata": {
                "description": "Enter number of vCores."
            }
        },
        "storageSizeInGB": {
            "defaultValue": 256,
            "minValue": 32,
            "maxValue": 8192,
            "type": "Int",
            "metadata": {
                "description": "Enter storage size."
            }
        },
        "licenseType": {
            "defaultValue": "LicenseIncluded",
            "allowedValues": [
                "BasePrice",
                "LicenseIncluded"
            ],
            "type": "String",
            "metadata": {
                "description": "Enter license type."
            }
        }
    },
    "variables": {
        "networkSecurityGroupName": "[concat('SQLMI-', parameters('managedInstanceName'), '-NSG')]",
        "routeTableName": "[concat('SQLMI-', parameters('managedInstanceName'), '-Route-Table')]"
    },
    "resources": [
        {
            "type": "Microsoft.Network/networkSecurityGroups",
            "apiVersion": "2020-06-01",
            "name": "[variables('networkSecurityGroupName')]",
            "location": "[parameters('location')]",
            "properties": {
                "securityRules": [
                    {
                        "name": "allow_tds_inbound",
                        "properties": {
                            "description": "Allow access to data",
                            "protocol": "Tcp",
                            "sourcePortRange": "*",
                            "destinationPortRange": "1433",
                            "sourceAddressPrefix": "VirtualNetwork",
                            "destinationAddressPrefix": "*",
                            "access": "Allow",
                            "priority": 1000,
                            "direction": "Inbound"
                        }
                    },
                    {
                        "name": "allow_redirect_inbound",
                        "properties": {
                            "description": "Allow inbound redirect traffic to SQL Managed Instance inside the virtual network",
                            "protocol": "Tcp",
                            "sourcePortRange": "*",
                            "destinationPortRange": "11000-11999",
                            "sourceAddressPrefix": "VirtualNetwork",
                            "destinationAddressPrefix": "*",
                            "access": "Allow",
                            "priority": 1100,
                            "direction": "Inbound"
                        }
                    },
                    {
                        "name": "deny_all_inbound",
                        "properties": {
                            "description": "Deny all other inbound traffic",
                            "protocol": "*",
                            "sourcePortRange": "*",
                            "destinationPortRange": "*",
                            "sourceAddressPrefix": "*",
                            "destinationAddressPrefix": "*",
                            "access": "Deny",
                            "priority": 4096,
                            "direction": "Inbound"
                        }
                    },
                    {
                        "name": "deny_all_outbound",
                        "properties": {
                            "description": "Deny all other outbound traffic",
                            "protocol": "*",
                            "sourcePortRange": "*",
                            "destinationPortRange": "*",
                            "sourceAddressPrefix": "*",
                            "destinationAddressPrefix": "*",
                            "access": "Deny",
                            "priority": 4096,
                            "direction": "Outbound"
                        }
                    }
                ]
            }
        },
        {
            "type": "Microsoft.Network/routeTables",
            "apiVersion": "2020-06-01",
            "name": "[variables('routeTableName')]",
            "location": "[parameters('location')]",
            "properties": {
                "disableBgpRoutePropagation": false
            }
        },
        {
            "type": "Microsoft.Network/virtualNetworks",
            "apiVersion": "2020-06-01",
            "name": "[parameters('virtualNetworkName')]",
            "location": "[parameters('location')]",
            "dependsOn": [
                "[variables('routeTableName')]",
                "[variables('networkSecurityGroupName')]"
            ],
            "properties": {
                "addressSpace": {
                    "addressPrefixes": [
                        "[parameters('addressPrefix')]"
                    ]
                },
                "subnets": [
                    {
                        "name": "[parameters('subnetName')]",
                        "properties": {
                            "addressPrefix": "[parameters('subnetPrefix')]",
                            "routeTable": {
                                "id": "[resourceId('Microsoft.Network/routeTables', variables('routeTableName'))]"
                            },
                            "networkSecurityGroup": {
                                "id": "[resourceId('Microsoft.Network/networkSecurityGroups', variables('networkSecurityGroupName'))]"
                            },
                            "delegations": [
                                {
                                    "name": "miDelegation",
                                    "properties": {
                                        "serviceName": "Microsoft.Sql/managedInstances"
                                    }
                                }
                            ]
                        }
                    }
                ]
            }
        },
        {
            "type": "Microsoft.Sql/managedInstances",
            "apiVersion": "2020-11-01-preview",
            "name": "[parameters('managedInstanceName')]",
            "location": "[parameters('location')]",
            "dependsOn": [
                "[parameters('virtualNetworkName')]"
            ],
            "sku": {
                "name": "[parameters('skuName')]"
            },
            "identity": {
                "type": "SystemAssigned"
            },
            "properties": {
                "subnetId": "[resourceId('Microsoft.Network/virtualNetworks/subnets', parameters('virtualNetworkName'), parameters('subnetName'))]",
                "storageSizeInGB": "[parameters('storageSizeInGB')]",
                "vCores": "[parameters('vCores')]",
                "licenseType": "[parameters('licenseType')]",
                "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')]"
                }
            }
        }
    ]
}

Grant Directory Readers permissions

Once the deployment is complete for your managed instance, you might notice that the SQL Managed Instance needs Read permissions to access Microsoft Entra ID. Read permissions can be granted by selecting on the displayed message in the Azure portal by a person with enough privileges. For more information, see Directory Readers role in Microsoft Entra ID for Azure SQL.

Limitations

To reset the server administrator password, Microsoft Entra-only authentication must be disabled.
If Microsoft Entra-only authentication is disabled, you must create a server with a server admin and password when using all APIs.

If you already have a logical server or SQL managed instance, and just want to enable Microsoft Entra-only authentication, see Tutorial: Enable Microsoft Entra-only authentication with Azure SQL.
For more information on the Microsoft Entra-only authentication feature, see Microsoft Entra-only authentication with Azure SQL.
If you're looking to enforce server creation with Microsoft Entra-only authentication enabled, see Azure Policy for Microsoft Entra-only authentication with Azure SQL

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Create server with Microsoft Entra-only authentication enabled in Azure SQL

Prerequisites

Permissions

Provision with Microsoft Entra-only authentication enabled

Azure SQL Database

Azure SQL Managed Instance

Grant Directory Readers permissions

Limitations

Feedback

Additional resources

Share via

Create server with Microsoft Entra-only authentication enabled in Azure SQL

Prerequisites

Permissions

Provision with Microsoft Entra-only authentication enabled

Azure SQL Database

Azure SQL Managed Instance

Grant Directory Readers permissions

Limitations

Related content

Feedback

Additional resources