Managed identity is a feature of Azure Active Directory that can be assigned to Azure resources such as VMs. This identity can be used to authenticate to any service that supports Azure Active Directory, without having to manage credentials in code.
When you deploy Vantage on Azure (DIY) using a solution template, a User Assigned Managed Identity is automatically created and assigned to database VMs. These VMs use managed identity to access Azure resources during elasticity, storage expansion and node failure recovery operations.