Managed identity is now available for Azure Kubernetes Service, so there is no longer need to manage your own service principals or rotate credentials often. Just execute “az aks create -g rgname -n clustername –enable-managed-identity” and the cluster is ready to go. The next option is using ARM template to configure AKS. There are multiple examples of ARM templates for deploying Kubernetes in Azure with advanced networking and etc. However, you can’t find any templates that use Managed Identity along with Azure Kubernetes Service. Plus, if you have resources outside of the MC_* resource group (it’s created automatically during the AKS deployment), you need to grant required permissions to cluster Managed Identity (new and recommended) or Service Principal, so AKS will be able to interact with such “external” resources (for example, read/write on subnets and etc.). Here is an example how you can reference the identity using ARM template:
"type": "Microsoft.Network/virtualNetworks/subnets/providers/roleAssignments",
"apiVersion": "2017-05-01",
"name": "[concat(variables('vnetName'), '/', variables('vnetSubnetName'),'/Microsoft.Authorization/', guid(resourceGroup().id, 'aksvnetaccesscluster'))]",
"properties": {
"roleDefinitionId": "[variables('networkContributorRole')]",
"principalId": "[reference(resourceId('Microsoft.ContainerService/managedClusters/', parameters('clusterResourceName')), '2020-03-01', 'Full').identity.principalId]",
"scope": "[variables('vnetSubnetId')]"
}