Introducing Local Identity with Azure Key Vault in Build 2510

Microsoft

Nov 07, 2025

We’re excited to announce public preview of local identity with Azure Key Vault that allows you to deploy an azure local cluster which is not dependent on active directory. With Local Identity and Azure Key Vault integration, you can:

Remove dependencies on existing infrastructure
No need for Active Directory—simplify deployments and reduce complexity.
Streamline backing of keys to Key Vault
Seamless key vault integration which allows backing up of keys to azure key vault
Enable partner ecosystem compatibility
We’re working with backup partners like Veeam and Commvault to ensure backup software works seamlessly in AD-less environments. We are also working with hardware partners like Dell and Lenovo

Try the public preview and validate how the solution works email mailto:azurelocalidentity@microsoft.com with any questions or concerns

Private Preview Announcement

We’re introducing two new features for Local Identity clusters in private preview:

Management Toolkit
A guided setup for configuring an admin workstation to securely manage clusters without AD.

Management Toolkit Highlights

Aligns local admin accounts and installs required certificates.
Applies safe defaults for protocols, authentication, and firewall settings.
Provides optional helpers for MMC tools like Failover Cluster Manager and Hyper-V Manager.

Important: This toolkit does not replace your existing tools—it enables them to work seamlessly with Local Identity clusters.

Internal DNS
Provides name resolution within the cluster without requiring Active Directory.

Internal DNS Overview

Simplifies hostname resolution for nodes, VMs, and services.
Tunable resource consumption for constrained environments.
Enable via Azure Local portal during deployment.

Interested? If you are interested in being a part of the private preview please email azurelocalidentity@microsoft.com.
Prerequisite: Build 2510 or later.

Next Steps