Azure Storage accounts with hierarchical namespace and SFTP enabled now support Entra ID (formerly Azure AD) authentication, eliminating the need for local user management. Clients obtain a short-lived OpenSSH token (valid 65 minutes) tied to their Entra identity, and access is governed by Azure RBAC and ABAC — the same permissions model used across Azure data plane services. This removes the user management and observability challenges of local SFTP users while enabling existing identities, including partner accounts, to authenticate without app refactoring.
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