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Azure Security Guide

Protecting Your Side of the Shared Responsibility Model

Microsoft Azure, like every major cloud provider, sells a simple message: move to the cloud and you gain stronger security. In a narrow sense, that promise is real. Microsoft runs hardened data centres, manages the hardware, patches the hypervisors, and exposes a mature set of security services on top. The physical and platform layers are no longer your problem.

The problem is that most breaches do not start with a failing disk or an unpatched hypervisor. They start higher up the stack – with mis-scoped roles, permissive storage accounts, chatty APIs, and data exports that were never meant to be permanent.

Cloud providers secure their infrastructure. Enterprises are expected to secure their data.

Once a record is stored in Azure, it is your identity model, access patterns, and data flows that determine whether that record remains controlled. 

Azure will give you the tools: Defender for Cloud, Policy, Key Vault, and Entra ID. However, it will not decide where sensitive data is copied, who sees full production values, or how much detail ends up in logs and downstream systems.

You know where standard RBAC, network controls, and encryption end. You also know where the real risk begins: flat access to production data, permissive managed identities, verbose logging, and “temporary” exports that never get cleaned up.

DataStealth is designed for this layer. It does not replace Azure’s controls. It sits with them and focuses on one problem: discovering, classifying, and protecting the data itself across Azure, SaaS, and on-prem — so that even if someone reaches a workload, they do not gain cleartext access to what matters.

This guide focuses on the side you control: how to protect the data layer, and where DataStealth can help you do it in a consistent, controlled way.

How to Secure Your Data Within Azure

1. Discover and Classify Data

Azure’s benchmark and guidance all start from the same point: you cannot secure data you have not identified.

In practice, data sits across:

  • Azure Storage, Azure SQL, Cosmos DB, Synapse, Log Analytics
  • App Service, AKS, Functions, and API Management
  • SaaS platforms integrated via APIs and iPaaS
  • On-prem databases, mainframes, and file servers that still run critical workflows

Tools like Purview, Defender for Cloud, and tagging help, but they mainly cover resources that are already known and catalogued. Shadow data and dark data (e.g., exports, staging areas, debug buckets, oversized logs) often sit outside that view.

DataStealth’s discovery focuses on content, not just resource metadata:

  • Scans across Azure, on-prem, and SaaS to locate PII, PHI, PCI, and other regulated fields in transit and at rest.

  • Detects dark data and shadow data: untracked exports, temporary tables, log sinks, and ad-hoc copies.

  • Builds a working inventory that can be aligned with Azure tags, Purview collections, management groups, and policies.

  • Identifies sensitive information across data types, be it structured data or even unstructured data (e.g., documents, messages, etc).

For an Azure security team, this turns “discover and classify data” into concrete work:

  • Identify which storage accounts, SQL instances, databases, and tables actually hold regulated data.

  • Prioritize hardening and policy for those assets first.

  • Feed accurate location data into Defender for Cloud, Azure Policy, and Purview so posture assessments accurately reflect reality.

2. Protect Data, Not Just Perimeters

Azure recommends encrypting data at rest and in transit, and managing keys in secure services such as Key Vault or Managed HSM. Those are necessary controls.

They are also container-level controls. Once an application, query, or pipeline decrypts data, anyone at that layer can usually see full values:

  • Application Insights and Log Analytics capture complete payloads and headers.

  • ETL jobs move raw PII into Synapse, data lakes, and external analytics platforms.

  • APIs expose entire records to downstream systems and vendors.


At that point, Azure is doing what it should. The exposure comes from how data is handled above the platform.

DataStealth introduces a data-layer control plane that sits on top of Azure’s foundations:

  • Tokenization replaces sensitive values (e.g., card numbers, national IDs, account numbers) with format-preserving tokens. Applications and schemas continue to work with minimal change.

  • Field-level encryption (FPE) applies cryptography to specific fields without requiring broad schema or code changes.

  • Dynamic data masking ensures different user groups see different views: fully masked, partially masked, or cleartext, based on role and context.

These controls are enforced where data actually moves:

  • Inline proxies in front of App Service, AKS, or API Management inspect and protect HTTP/REST/gRPC/GraphQL traffic before it reaches your application.

  • Database proxies apply field-level policies for connections into Azure SQL and other Azure data services.

  • Workers and batch processes protect data written to Azure Storage, Data Lake, and messaging services.

You still rely on Azure for VNet design, NSGs, DDoS protection, and Defender for Cloud. DataStealth adds a second line of defence: if someone who shouldn’t reach an application or data store, they do not get full, readable records.

3. Key Management with Azure Key Vault

Azure’s guidance on keys and secrets focuses on using Key Vault or Managed HSM, controlling access through RBAC, and rotating keys regularly. Hard-coded secrets or ad-hoc key storage are treated as misconfigurations.

DataStealth is built to use that model, not replace it. Its cryptographic layer integrates with:

  • Azure Key Vault and Azure Managed HSM
  • Other KMS platforms for multi-cloud estates
  • On-prem HSMs where required by policy or regulation


This adds practical control without fragmenting your approach:

  • BYOK / HYOK — You keep ownership of master keys. DataStealth uses them but does not own or store them.

  • Scoped keys — Different keys for tenants, regions, data sets, or business units to limit blast radius and support residency and segregation.

  • Auditable usage — Each key operation for tokenization, encryption, and detokenization is logged and can be tied back to a request, system, and identity.

This looks like:

  1. Master keys live in Key Vault or Managed HSM.

  2. DataStealth uses those keys for field-level protection across Storage, SQL, and other services.

  3. Your security and compliance teams retain end-to-end visibility and control over key material.

You maintain Azure’s key management standards while gaining consistent, field-level protection across workloads.

4. Least Privilege Applied at the Data Layer

Azure’s identity model revolves around Entra ID, Conditional Access, and RBAC. Done well, they give you strong control over who can connect to a resource and under what conditions.

Many issues appear after that first gate:

  • Engineers are troubleshooting incidents on production data with full visibility.

  • Analysts are working on real PII because synthetic data is not fit for purpose.

  • External vendors or integrators are seeing more customer information than contracts intended.

The resource-level decision (access to a database, storage account, or API) may be justified. 

The data-level exposure is not. DataStealth narrows this gap by adding a second decision point:

  • Policies define who can view cleartext, who can see masked values, and who can only view tokens.

  • Context (i.e., including identity, role, application, device, location, and time) informs each decision.

  • The same record appears differently depending on who is requesting it and for what purpose.


The flow is straightforward:

  • Entra ID, Conditional Access, and RBAC determine who can access an Azure resource.
  • DataStealth determines what callers can view in terms of data fields.

This reduces the impact of insider misuse, credential theft, and RBAC mistakes. Access for operational reasons can remain in place, but the amount of sensitive data any individual can reconstruct is tightly limited.

5. Reducing Compliance Scope, Not Just Passing Checks

Azure ties its platform to frameworks such as the Azure Security Benchmark and CIS. Defender for Cloud, Secure Score, and Policy help you keep configurations in line with those references.

Compliance teams, however, are not only interested in configuration. They care about:

  • How much regulated data exists in clear form?
  • Where is this data located?
  • Who can rebuild complete records?
  • What evidence can you show for those claims?

DataStealth’s design supports that level of scrutiny:

  • Tokenization and FPE reduce the volume of live PII/PCI entering Azure services. Many workloads operate on tokens instead of real values.

  • Detokenization is limited to a small number of tightly controlled locations, often bound to specific regions and roles.

  • Every protection and detokenization event is logged with enough detail for internal reviews and formal audits.

For PCI, this can lower the number of Azure systems considered in full scope, because they handle tokens rather than PANs.

For GDPR, HIPAA, and regional data-protection laws, you can show clear answers for:

  • Where data is stored.
  • Where and when it can be de-tokenized.
  • Which identities have that capability.

Azure provides platform-level assurance through configurations, logs, and certifications. DataStealth adds data-level assurance, ensuring how sensitive fields are treated throughout their lifecycle.

6. Hybrid, PaaS, and Multi-Cloud

Most Azure estates are hybrid and multi-cloud. Typical patterns include:

  • On-prem mainframes and databases feeding Azure workloads.
  • Legacy applications and file servers still in daily use.
  • Specific workloads running in other clouds alongside Azure.

Azure provides the network and platform components: VPN, ExpressRoute, hybrid networking, and secure deployment guidance for PaaS services. What it does not provide out of the box is consistent data handling across all these paths.

DataStealth adds that consistency:

  • One set of discovery, classification, tokenization, and masking policies across Azure, on-prem, and other clouds.

  • Components that run where the data is (on-prem or in Azure) while sharing a common policy model.

  • First-class treatment of streaming, batch, and file-based flows (Event Hubs, queues, lakes, file shares, etc.), not just transactional APIs.

Instead of using one tool per platform, you keep Azure handling infrastructure and identity, while DataStealth keeps data treatment uniform wherever it travels.

Next Steps

Azure’s security model is clear: Microsoft secures the cloud. Customers secure what runs in it, especially data, identities, and access patterns.

DataStealth helps you carry that responsibility in a structured way:

  • Build an accurate, current picture of where sensitive data resides.

  • Apply field-level protection so access mistakes and breaches do less damage.

  • Use Key Vault and Entra ID as anchors for key and identity control.

  • Reduce the amount of data within the full compliance scope and provide strong evidence on how it is handled.

  • Extend Azure security practices across the hybrid and multi-cloud systems you rely on.

If you already invest in Azure hardening – Entra ID, VNets, Defender for Cloud, Sentinel – DataStealth is the natural next layer. It does not change how Azure works. It changes what people and systems can actually see once they get in.

The most effective way to understand DataStealth is to see how it operates in a real architecture and to ask the questions that matter to your team.

A demo and technical walkthrough will give you the opportunity to:

  • See how DataStealth protects data inline across App Service, AKS, API Management, Azure SQL, Storage, and hybrid connections.

  • Understand how our inline tokenization, masking, and FPE work in practice.

  • Review how DataStealth integrates with Entra ID, Key Vault, and your existing monitoring and logging tools.

  • Examine deployment options for Azure-only, hybrid, and multi-cloud environments.

  • Ask detailed questions about latency, performance, policy design, failover models, and operational overhead.

If you want a clearer view of how DataStealth works and how it would behave in your own Azure or hybrid layout, book a demo and technical Q&A session with the DataStealth team.

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