Microsoft Azure provides enterprises with the security, scalability, and global reach to power mission-critical workloads across industries. However, for organizations operating under strict data sovereignty requirements, regulatory obligations, or frameworks such as GDPR and Schrems II, managing encryption keys and storing them in Hardware Security Modules (HSMs) outside of Azure’s control, and independent of any cloud provider’s infrastructure, is essential to maintaining compliance and data sovereignty requirements.
The Fortanix Solution
Fortanix Data Security Manager (DSM) serves as an external key manager for Microsoft Azure Key Vault Managed HSM, enabling organizations to expand cloud adoption while maintaining full control and ownership of their encryption keys. With Fortanix DSM, a FIPS 140 Level 3 certified next-gen HSM with build-in Key Management, keys are managed and stored securely and separately from Azure cloud infrastructure. Critically, Fortanix supports both Bring Your Own Key (BYOK) and Hold Your Own Key (HYOK) for Azure, enabling enterprises to maintain true control over their cryptographic material and build a foundation for Sovereign Cloud, so no cloud provider, including Microsoft, can access protected data without the customer's explicit consent.

Benefits

Full Key Control with BYOK
Bring your own keys into Azure Key Vault and maintain exclusive control to reduce compliance complexity across hybrid and multicloud environments.

Sovereign Cloud Readiness with HYOK
Enforce data residency and access policies with external key management for Azure Key Vault Managed HSM. Meet Sovereign Cloud requirements, ensuring neither Microsoft nor any third party can access protected data.

Simple Azure Key Management
Easily manage the full lifecycle of all Azure Key Vault keys, including automated key rotation, with copies of keys on the DSM platform, reducing operational risk and streamlining day-to-day management.

Immediate Access Blocking
Kill Switch capability enables administrators to immediately revoke access to all data-at-rest across any Azure region or service with just a few clicks.

One Centralized Platform for All Your Keys
Manage multicloud and on-premises keys and gain a single operational view. Know where your keys are and maintain full custody with a FIPS 140 Level 3 certified HSM.

Centralized Audit and Access Control
Enforce granular access controls and quorum approval workflows across all key operations, with centralized audit logging to satisfy compliance and forensic requirements.
Key Use Cases

Financial Services
Meet PCI DSS, DORA, and regional banking regulations that require customer-managed keys.

Healthcare
Comply with HIPAA, GDPR, and national health data laws with HYOK for patient data.

Government
Ensure Sovereign Cloud deployments and control over data access.

Global Enterprises
Centrally manage the full lifecycle of encryption keys across all Azure regions.



