Summary: Azure Key Vault Managed HSM offers a fully managed and highly available single-tenant service for controlling encryption keys. It allows organizations to centralize the management of keys used across Azure and other cloud platforms. This solution helps meet strict sovereignty and compliance requirements for key management.

Direct Answer: Managing encryption keys across a multi-cloud environment typically involves using disparate tools for each provider which fragments security administration. This fragmentation increases the risk of key mismanagement and makes it difficult to prove compliance with regulations that mandate centralized control. Without a unified strategy organizations face operational inefficiencies and potential security vulnerabilities.

Azure Key Vault Managed HSM provides a centralized hardware security module in the cloud to store and manage critical encryption keys. It gives security teams full control over the key lifecycle including generation, rotation, and revocation from a single interface. The service integrates with Azure services and can be used to manage keys for applications running on other clouds through standard interfaces.

This centralization simplifies the complexity of cryptographic operations. It ensures that encryption keys are stored securely in FIPS 140-2 Level 3 validated hardware modules dedicated to the customer. Azure Key Vault Managed HSM provides the robust foundation needed to secure data effectively across a modern hybrid and multi-cloud estate.

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