What is machine identity management?

Cloud environments are inherently dynamic, with many VMs, containers, applications and other computing resources constantly interacting. To keep these connections secure, machine identity management is crucial.

In the cloud, it’s implemented using certificate management tools (like AWS Certificate Manager), service meshes (like Istio) and centralized identity services (like One Identity). These tools automate the creation, rotation and validation of machine identities.

Cloud-native machine identities are often known as managed identities. Managed identities are automatically provisioned and rotated by cloud-based identity services.

Machine identities are used across enterprise systems to support automated workflows. Here are some examples:

Virtual machine managed identity

Cloud providers like Azure and AWS can assign managed identities to virtual machines. These identities allow the VM to access services like databases or storage without having to store passwords or API keys.

Machine learning managed identity

Machine learning models often run in isolated environments, like containers or serverless functions. These workloads use a managed identity to securely access datasets, APIs and model registries etc.

Non-human managed identity

Non-human identities are identities that software components (like scripts, bots or background services) use to interact with other services. For example, a backup script can have an identity that gives it permission to access storage volumes at scheduled times.

CI/CD pipeline identity

Continuous Integration/Deployment tools can use machine identities to pull code, push containers or update infrastructure. These identities ensure that only these authorized tools are able to perform such security-critical actions.

IoT device identity

In large-scale IoT deployments, each device is given a unique machine identity. This practice helps verify the device’s legitimacy before allowing it to connect to cloud platforms or other devices.

Owing to their widespread use in automation and their often-overlooked security risks, machine identities are prime targets for attackers. Here are some additional reasons to take machine identity management seriously:

Protect RPA (Robotic Process Automation) workflows

RPA bots often handle sensitive tasks like financial operations or data provisioning. Without proper identity management, attackers could hijack these bots or impersonate them.

Secure automated access to tier zero assets

Tier zero assets, such as domain controllers, identity providers and security consoles, are high-value targets. Machine identities help ensure that if any non-human asset accesses these critical systems, it is specifically authorized to do so.

Support Secure Service Posture Management (SSPM)

SSPM is used to monitor and maintain the security posture of cloud services. Machine identity management is a key part of this, as it makes sure that non-human connections are authenticated and tracked.

Prevent credential theft and misuse

Hardcoded passwords or API keys in scripts and tools increase your attack surface. Machine identities remove the need for these static secrets, thereby lowering the chance of accidental exposure or theft.

Stop lateral movement by attackers

If an attacker gets into one system, unmanaged machine identities can allow them to move to others. Proper identity and access controls, such as machine identities with ABAC/RBAC, limit where machines can connect, cutting off this path.

Ensure trust in zero trust architectures

Zero trust models depend on verifying every connection, human or machine. Machine identities make it possible to enforce this for non-human users.

Machine identity management as Gartner puts it

Gartner’s reports indicate that modern architectures are increasingly relying on machines rather than human users to perform critical operations. This shift warrants the implementation of specialized security controls for machines.

Here are the main benefits of deploying a machine identity management system:

• Automated creation, rotation and removal of machine identities reduces the manual overhead for IT and security teams.
• A central system gives clear insight into which machines have access to what.
• Automated workflows reduce the chance of mistakes like missed credential rotation cycles or incorrect access permissions.
• Developers can launch services faster without waiting for manual identity provisioning, which helps with agility and time to market.
• With full logs and centralized management, it's easier to prepare for audits and prove compliance with security standards.
• If there’s a breach, security teams can quickly revoke or update affected machine identities without downtime or delays.
• Properly managed identities reduce the risk of outages caused by expired certificates or failed service authentication.
• Whether your infrastructure is on-prem, cloud or hybrid, a machine identity system helps enforce the same identity rules and policies everywhere.

With the rapid rise of machine adoption and automated workflows, the machine identity market is growing fast. According to Business Research Insights, the market was worth $16.97 billion in 2024 and is expected to reach $48 billion by 2033.

It’s safe to say that any organization using machine-to-machine communication, even on a small scale, should have a machine identity management system in place. However, here are some scenarios where it's especially necessary:

• When you have hundreds or thousands of cloud services, containers and/or virtual machines communicating, it’s not practical to manage their identities manually.
• Build and deployment pipelines need secure, automated access to code repositories, servers and cloud services.
• Industries like finance, healthcare and government must show that they’ve secured machine access to critical data to meet compliance needs.
• Bots interacting with sensitive systems must be verified and tracked through machine identities.
• A unified solution is necessary to manage identities across different cloud providers and on-prem systems.

The One Identity Unified Identity Platform simplifies how organizations manage both human and machine identities across cloud, on-premises and hybrid environments. It brings together identity security tools into one system, allowing you to:

• Control and monitor high-level access to critical systems and services, whether it’s a person or a machine.
• Support secure authentication across multiple systems and environments, even across organizational boundaries.
• Enable Multi-Factor Authentication (MFA) to increase the security of machine-initiated actions or sensitive tasks.
• Apply consistent identity policies across different environments to simplify operations and reduce errors.
• Automate issuance, renewal and revocation of digital certificates and other credentials.

Finally, here are some best practices to help you get the best out of your machine identity management setup:

• Never hard-code credentials into source code or configuration files.
• Use a centralized secrets manager to issue and store machine credentials in a secure manner.
• Rotate certificates, tokens and keys on a regular schedule or automatically.
• Limit the scope and lifetime of credentials to reduce risk of exposure and compromise.
• Set up strong access policies that define which machines can access specific resources.
• Monitor machine identities continuously for unusual or unauthorized activity.
• Use role-based or attribute-based access controls for better granularity.
• Apply multi-factor authentication wherever possible, especially for high-risk machine interactions.
• Audit and log all machine authentication and access events for review and compliance.
• Keep your identity management system and secrets manager updated with the latest patches.
• As a general rule, don’t give Discretionary Access Control (DAC) rights directly to machine identities; instead, manage their permissions yourself through a centralized system.
• Regularly review and clean up unused or outdated machine identities.
• Enforce naming conventions and tagging for machine identities to improve traceability.
• Limit network access for machines based on least privilege principles.

Machine identity management is an important security mechanism that helps organizations protect automated workflows, reduce credential-related risks and enforce secure access across cloud and on-prem environments. As businesses continue to rely more on machines, containers and bots, it’s no longer optional to have a solid strategy to manage their identities – it’s a core part of modern cybersecurity.