
Authentication and Authorization are the two things that we need to get familiar with when we learn about the Access management.
Authentication is proving that we are the same user who we say we are. Below are the authentication methods available in Azure.

SQL Authentication: Azure SQL Database and for the Managed instance (MI) supports SQL authentication. This is just like any regular SQL Authentication account with username and the password. When you create the server, you will need to create the SQL authentication account which will become the server admin that will have database owner on all the databases. This account can create other SQL authentication accounts on the server as well.
Azure Active Directory: There is a centralized location for the identities and permissions to database users to be stored for the Azure active directory authentication. As the password is only stored at one location, it becomes easier for the administrators to manage the identities and for maintaining the passwords. This authentication is supported for Azure SQL database, Managed instance (MI) and Azure synapse analytics. The Active directory admin will become the server admin where to create other AD logins, only the Active directory admin can create the other AD accounts having permissions to Azure SQL database. Multi factor authentication option is available for this option. Authentication app can be used as the multi factor authentication where it provides phone call/text message/authentication app to confirm the identity. This authentication type will use the contained database users to connect to the database to access the database objects.
Active directory will support the users with the login id and password, Integrated (single sign-on) authentication used when there is a trust built between the Active directory and the Azure AD using windows authentication. Universal/interactive with multi factor authentication is where the password is generated dynamically. There is a token authentication where a token is generated from Azure AD and as we pass this token to the SQL. Source: here.
One of the important point to remember is, the Azure active directory admin has to create the Azure active directory login. SQL authentication logins cannot be created by Azure AD logins. The other type of users that the Azure AD supports are individual user accounts, group accounts, service principles.
To create the Azure AD account, you can create the account by running on virtual master database. please see sample code to create Azure AD login here.
Lets learn a bit about the differences in the logins and users in between the managed instance and Azure SQL database
Managed Instance: You can create the Azure AD server admin along with the SQL server admin. You can create the SQL logins even when you only enable Azure AD only authentication but you cant connect until you enable the SQL authentication. You can create the SQL or the Azure AD logins, Database users and database contained users. You can also create the Server trust group for the distribution transaction scenarios between the two instances.
Azure SQL Database: You can create the Azure AD Server admin along with SQL logins. Additionally you can have roles like loginmanager and dbmanager for limited server admins. You can create the users associated with the SQL logins, create contained users including Azure AD. To create these contained users, the user must be login using the Azure AD server admin.
There are two configuration options for the authentication:
Cloud only option- where you can create the AD azure accounts with out having them connected to the on-prem servers or you can federate services with single sign-in option, Azure AD storing password as a Hash and Azure SQL passthrough with single sign-on is where the password stored in on-prem.
Azure SQL Authentication supports Azure AD authentication or SQL authentication or Azure AD only authentication (disables the SQL authentication automatically).
Azure Role-Based Access control (RBAC) is what can and cannot be done as a user. We have built in roles in azure where we can assign access to the users and groups permissions all the way from the subscription to the individual resource groups and resources. These permissions can be applied to each level of the hierarchy of resources.
There are three RBAC built in roles that we need to remember:
Owner: Owner can do everything and assign other users as well.
Contributor: Can only modify but cant assign other userd
Reader: Can only read the assigned resource
Custom roles can also be created. Once these roles are created, you can assign the users to these groups.
For the SQL permissions, you can use the built in roles or the custom roles making sure you give the least privileges needed. To provide the least privileges, for the azure SQL database the AD user will be assigned to the database user which will have permissions to the database role connecting to the database. With the Azure SQL managed instance, the login at the server level will be associated and connected to the database user which is assigned to the database roles.
The other important thing to remember is that when the owner of the tables and the views objects are the same, we can only grant the user permissions to access the views instead of granting the permissions to tables for security reasons but the user can now access the tables through the views without having to have the access to the tables. This is called Ownership chaining.
Row level security: Securing the data by only providing access to the rows that the users are allowed to see. This comes under the least privilege access as well.
In order to implement the row level security, we need to create the SQL object known as security policy which is assigned to the table where it will filter the rows and provide only the information that is allowed to share.
I did not show any code examples here in this post because we already have several resources in place showing the examples of how to create the logins and users. Please check here and here
In the coming blog post, I will be writing about threat protection.
Thanks for reading!
Resources:
Azure SQL Security: Understanding Access and Authentication (Ep. 2) | Data Exposed