Azure managed disks simplify disk management for Azure IaaS VMs by managing the storage accounts associated with the VM disks. When you deploy a Teradata ecosystem from a solution template and specify the VM size, Azure managed disks are created and managed for you. Azure managed disks are used for all components of the ecosystem.
All storage accounts which have root disks and data disks associated with managed disks are encrypted using SSE by default, except diagnostic storage accounts. You cannot turn off encryption on managed disk storage accounts, as SSE is set and cannot be disabled. Diagnostic storage accounts use standard storage and are unmanaged disks.