Apply Zero Trust principles to encrypting Azure-based network communication

Article
04/12/2024

This article provides guidance for applying the principles of Zero Trust for encrypting network communication to, from, and across Azure environments in the following ways.

Zero Trust principle	Definition	Met by
Verify explicitly	Always authenticate and authorize based on all available data points.	Using Conditional Access policies for your Azure VPN Gateway connections and Secure Shell (SSH) and Remote Desktop Protocol (RDP) for your user-to-virtual machine connections.
Use least privileged access	Limit user access with Just-In-Time and Just-Enough-Access (JIT/JEA), risk-based adaptive policies, and data protection.	Configuring your Microsoft Enterprise Edge (MSEE) devices to use static connectivity association key (CAK) for Azure ExpressRoute with direct ports and using managed identity to authenticate ExpressRoute circuit resources.
Assume breach	Minimize blast radius and segment access. Verify end-to-end encryption and use analytics to get visibility, drive threat detection, and improve defenses.	Protecting network traffic with encryption methods and protocols that provide confidentiality, integrity, and authenticity of your data in transit. Using Azure Monitor to provide ExpressRoute network performance metrics and alerts. Using Azure Bastion to manage individual sessions from the Bastion service and delete or force a disconnect.

This article is a part of a series of articles that demonstrate how to apply the principles of Zero Trust for Azure networking.

The levels of encryption for network traffic are:

Network layer encryption
- Secure and verify communication from the internet or your on-premises network to Azure VNets and virtual machines
- Secure and verify communication within and across Azure VNets
Application layer encryption
- Protection for Azure Web Applications
Protection for workloads running on Azure virtual machines

Reference architecture

The following diagram shows the reference architecture for this Zero Trust guidance for encrypted communication between users and admins on-premises or on the internet and components in the Azure environment for the steps described in this article.

In the diagram, the numbers correspond to the steps in the following sections.

What's in this article?

Zero Trust principles are applied across the reference architecture, from users and admins on the internet or your on-premises network to and within the Azure cloud. The following table describes the recommendations for ensuring the encryption of network traffic across this architecture.

Step	Task	Zero Trust principle(s) applied
1	Implement network layer encryption.	Verify explicitly Use least privileged access Assume breach
2	Secure and verify communication from an on-premises network to Azure VNets.	Verify explicitly Assume breach
3	Secure and verify communication within and across Azure VNets.	Assume breach
4	Implement application layer encryption.	Verify explicitly Assume breach
5	Use Azure Bastion to protect Azure virtual machines.	Assume breach

Step 1: Implement network layer encryption

Network layer encryption is critical when applying Zero Trust principles to your on-premises and Azure environment. When network traffic goes over the internet, you should always assume there's a possibility of traffic interception by attackers, and your data might get exposed or altered before it reaches its destination. Because service providers control how data gets routed through the internet, you want to ensure that the privacy and integrity of your data is maintained from the moment it leaves your on-premises network all the way to Microsoft’s cloud.

The following diagram shows the reference architecture for implementing network layer encryption.

In the next two sections, we discuss Internet Protocol Security (IPsec) and Media Access Control Security (MACsec), which Azure networking services support these protocols, and how you can ensure they're being used.

IPsec

IPsec is a group of protocols that provides security for Internet Protocol (IP) communications. It authenticates and encrypts network packets using a set of encryption algorithms. IPSec is the security encapsulation protocol used to establish virtual private networks (VPNs). An IPsec VPN tunnel consists of two phases, phase 1 known as main mode and phase 2 known as quick mode.

Phase 1 of IPsec is tunnel establishment, where peers negotiate parameters for the Internet Key Exchange (IKE) security association, such as encryption, authentication, hashing, and Diffie-Hellman algorithms. To verify their identities, peers exchange a preshared key. Phase 1 of IPsec can operate in two modes: main mode or aggressive mode. Azure VPN Gateway supports two versions of IKE, IKEv1 and IKEv2, and only operates in main mode. Main mode ensures the encryption of the identity of the connection between the Azure VPN Gateway and the on-premises device.

In phase 2 of IPsec, peers negotiate security parameters for data transmission. In this phase, both peers agree on the encryption and authentication algorithms, lifetime value of the security association (SA), and traffic selectors (TS) that defines what traffic is encrypted over the IPsec tunnel. The tunnel created in phase 1 serves as a secure channel for this negotiation. IPsec can secure IP packets using either Authentication Header (AH) protocol or Encapsulating Security Payload (ESP) protocol. AH provides integrity and authentication, while ESP also provides confidentiality (encryption). IPsec phase 2 can operate in either transport mode or tunnel mode. In transport mode, only the payload of the IP packet gets encrypted, while in tunnel mode the entire IP packet is encrypted and a new IP header is added. IPsec phase 2 can be established on top of either IKEv1 or IKEv2. The current Azure VPN Gateway IPsec implementation supports only ESP in tunnel mode.

Some of the Azure services that support IPsec are:

Azure VPN Gateway
- Site-to-site VPN connections
- VNet-to-VNet connections
- Point-to-Site connections
Azure Virtual WAN
- VPN sites
- User VPN configurations

There are no settings that you need to modify to enable IPsec for these services. They're enabled by default.

MACsec and Azure Key Vault

MACsec (IEEE 802.1AE) is a network security standard that applies the Assume breach Zero Trust principle at the data link layer by providing authentication and encryption over an Ethernet link. MACsec assumes that any network traffic, even in the same local area network, can be compromised or intercepted by malicious actors. MACsec verifies and protects each frame using a security key that is shared between two network interfaces. This configuration can only be accomplished between two MACsec-capable devices.

MACsec is configured with connectivity associations, which are a set of attributes that network interfaces use to create inbound and outbound security channels. Once created, traffic over these channels gets exchanged over two MACsec secured links. MACsec has two connectivity association modes:

Static connectivity association key (CAK) mode: MACsec secured links are established using a preshared key that includes a connectivity association key name (CKN) and the assigned CAK. These keys are configured on both ends of the link.
Dynamic CAK mode: The security keys are generated dynamically using the 802.1x authentication process, which can use a centralized authentication device such as a Remote Authentication Dial-In User Service (RADIUS) server.

Microsoft Enterprise Edge (MSEE) devices support static CAK by storing the CAK and CKN in an Azure Key Vault when you configure Azure ExpressRoute with direct ports. To access the values in the Azure Key Vault, configure managed identity to authenticate the ExpressRoute circuit resource. This approach follows the Use least privileged access Zero Trust principle because only authorized devices can access the keys from the Azure Key Vault. For more information, see Configure MACsec on ExpressRoute Direct ports.

Step 2: Secure and verify communication from an on-premises network to Azure VNets

As cloud migration becomes more prevalent across businesses of different scales, hybrid connectivity plays a key role. It’s crucial to not only secure and protect, but also to verify and monitor the network communication between your on-premises network and Azure.

The following diagram shows the reference architecture for securing and verifying communication from an on-premises network to Azure VNets.

Azure provides two options to connect your on-premises network to resources in an Azure VNet:

Azure VPN Gateway allows you to create a site-to-site VPN tunnel using IPsec to encrypt and authenticate network communication between your network in central or remote offices and an Azure VNet. It also allows individual clients to establish a point-to-site connection to access resources in an Azure VNet without a VPN device. For Zero Trust adherence, configure Microsoft Entra ID authentication and Conditional Access policies for your Azure VPN Gateway connections to verify the identity and compliance of the connecting devices. For more information, see Use Microsoft Tunnel VPN gateway with Conditional Access policies.
Azure ExpressRoute provides a high bandwidth private connection that lets you extend your on-premises network into Azure with the assistance of a connectivity provider. Because network traffic doesn’t travel over the public internet, data isn’t encrypted by default. To encrypt your traffic over ExpressRoute, configure an IPsec tunnel. However, keep in mind that when running IPsec tunnels over ExpressRoute, the bandwidth is limited to the tunnel bandwidth and you might need to run multiple tunnels to match the ExpressRoute circuit bandwidth. For more information, see Site-to-Site VPN connections over ExpressRoute private peering - Azure VPN Gateway.

If you’re using ExpressRoute Direct ports, you can increase your network security by enabling authentication when establishing BGP peers or configuring MACsec to secure layer 2 communication. MACsec provides encryption for Ethernet frames, ensuring data confidentiality, integrity, and authenticity between your edge router and Microsoft’s edge router.

Azure ExpressRoute also supports Azure Monitor for network performance metrics and alerts.

Encryption can safeguard your data from unauthorized interception, but it also introduces an extra layer of processing for encrypting and decrypting network traffic that can affect performance. Network traffic going over the internet can also be unpredictable because it must travel through multiple network devices that can introduce network latency. To avoid performance issues, Microsoft recommends using ExpressRoute because it offers reliable network performance and bandwidth allocation that you can customize for your workload.

When deciding between Azure VPN Gateway or ExpressRoute, consider the following questions:

What kinds of files and applications are you accessing between your on-premises network and Azure? Do you require consistent bandwidth for transferring large volumes of data?
Do you need consistent and low latency for your applications to perform optimally?
Do you need to monitor the network performance and health of your hybrid connectivity?

If you answered yes to any of these questions, then Azure ExpressRoute should be your primary method of connecting your on-premises network to Azure.

There are two common scenarios where ExpressRoute and Azure VPN Gateway can coexist:

Azure VPN Gateway can be used to connect your branch offices to Azure while having your main office connected using ExpressRoute.
You can also use Azure VPN Gateway as a backup connection to Azure for your central office if your ExpressRoute service has an outage.

Step 3: Secure and verify communication within and across Azure VNets

Traffic within Azure has an underlying level of encryption. When traffic moves between VNets in different regions, Microsoft uses MACsec to encrypt and authenticate peering traffic at the data-link layer.

The following diagram shows the reference architecture for securing and verifying communication within and across Azure VNets.

However, encryption alone isn't enough to ensure Zero Trust. You should also verify and monitor the network communication within and across Azure VNets. Further encryption and verification between VNets are possible with the help of Azure VPN Gateway or network virtual appliances (NVAs) but isn’t a common practice. Microsoft recommends designing your network topology to use a centralized traffic inspection model that can enforce granular policies and detect anomalies.

To reduce the overhead of configuring a VPN gateway or virtual appliance, enable the VNet encryption feature for certain virtual machine sizes to encrypt and verify traffic between virtual machines at the host level, within a VNet, and across VNet peerings.

Step 4: Implement encryption at the application layer

Application layer encryption plays a key factor for Zero Trust that mandates all data and communications are encrypted when users are interacting with web applications or devices. Application layer encryption ensures that only verified and trusted entities can access web applications or devices.

The following diagram shows the reference architecture for implementing encryption at the application layer.

One of the most common examples of encryption at the application layer is Hypertext Transfer Protocol Secure (HTTPS), which encrypts data between a web browser and a web server. HTTPS uses Transport Layer Security (TLS) protocol to encrypt client-server communication and uses a TLS digital certificate to verify the identity and trustworthiness of the website or domain.

Another example of application layer security is Secure Shell (SSH) and Remote Desktop Protocol (RDP) that encrypts data between the client and server. These protocols also support multifactor authentication and Conditional Access policies to ensure that only authorized and compliant devices or users can access remote resources. See Step 5 for information about securing SSH and RDP connections to Azure virtual machines.

Protection for Azure web applications

You can use Azure Front Door or Azure Application Gateway to protect your Azure web applications.

Azure Front Door

Azure Front Door is a global distribution service that optimizes the content delivery to end users through Microsoft's edge locations. With features such as Web Application Firewall (WAF) and Private Link service, you can detect and block malicious attacks on your web applications at the edge of the Microsoft network while privately accessing your origins using the Microsoft internal network.

To protect your data, traffic to Azure Front Door endpoints is protected using HTTPS with end-to-end TLS for all traffic going to and from its endpoints. Traffic is encrypted from the client to the origin and from the origin to the client.

Azure Front Door handles HTTPS requests and determines which endpoint in its profile has the associated domain name. Then it checks the path and determines which routing rule matches the path of the request. If caching is enabled, Azure Front Door checks its cache to see if there's a valid response. If there's no valid response, Azure Front Door selects the best origin that can serve the content requested. Before the request is sent to the origin, a rule set can be applied to the request to change the header, query string, or origin destination.

Azure Front Door supports both front end and back-end TLS. Front end TLS encrypts traffic between the client and Azure Front Door. Back-end TLS encrypts traffic between Azure Front Door and the origin. Azure Front Door supports TLS 1.2 and TLS 1.3. You can configure Azure Front Door to use a custom TLS certificate or use a certificate managed by Azure Front Door.

Note

You can also use the Private Link feature for connectivity to NVAs for further packet inspection.

Azure Application Gateway

Azure Application Gateway is a regional load balancer that operates at Layer 7. It routes and distributes web traffic based on HTTP URL attributes. It can route and distribute traffic using three different approaches:

HTTP only: Application Gateway receives and routes incoming HTTP requests to the appropriate destination in unencrypted form.
SSL Termination: Application Gateway decrypts incoming HTTPS requests at the instance level, inspects them, and routes them unencrypted to the destination.
End-to-End TLS: Application Gateway decrypts incoming HTTPS requests at the instance level, inspects them, and re-encrypts them before routing them to the destination.

The most secure option is end-to-end TLS, which allows encryption and transmission of sensitive data by requiring the use of Authentication Certificates or Trusted Root Certificates. It also requires uploading these certificates to the backend servers and ensuring these back end servers are known to Application Gateway. For more information, see Configure end-to-end TLS by using Application Gateway.

Additionally, on-premises users or users on virtual machines in another VNet can use the internal front end of Application Gateway with the same TLS capabilities. Along with encryption, Microsoft recommends that you always enable WAF for more front-end protection for your endpoints.

Step 5: Use Azure Bastion to protect Azure virtual machines

Azure Bastion is a managed PaaS service that allows you securely connect to your virtual machines over a TLS connection. This connectivity can be established from the Azure portal or through a native client to the private IP address on the virtual machine. Advantages of using Bastion include:

Azure virtual machines don't need a public IP address. Connections are over TCP port 443 for HTTPS and can traverse most firewalls.
Virtual machines are protected against port scanning.
The Azure Bastion platform is constantly updated and protected against zero-day exploits.

With Bastion, you can control the RDP and SSH connectivity to your virtual machine from a single point of entry. You can manage individual sessions from the Bastion service in the Azure portal. You can also delete or force a disconnect of an ongoing remote session if you suspect a user isn't supposed to be connecting to that machine.

The following diagram shows the reference architecture for using Azure Bastion to protect Azure virtual machines.

To protect your Azure virtual machine, deploy Azure Bastion and begin using RDP and SSH to connect to your virtual machines with their private IP addresses.

Recommended training

Next Steps

For additional information about applying Zero Trust to Azure networking, see:

References

Refer to these links to learn about the various services and technologies mentioned in this article.

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