🔐 How Azure API Management Passes OAuth Tokens to Power Automate Using Managed Identity
A deep‑dive guide for enterprise integration teams Modern integration patterns increasingly rely on secure, scalable, identity-driven connectivity.Systems such as IOM, ERP, and retailer integrations often speak to each other through Azure API Management (APIM) , which then forwards payloads to Power Automate cloud flows APIM acts as the single controlled ingress point, routing traffic to cloud flows configured behind secured endpoints rather than exposing them directly. One question always comes up: How does APIM obtain an OAuth token and pass it to a secure Power Automate endpoint? The answer lies in a powerful Azure feature: Managed Identity . This article breaks down the complete lifecycle—from token acquisition to validation—along with best practices used internally across our integration landscape. 1. Why Use Managed Identity Instead of Client Secrets? Traditionally, calling an OAuth‑secured Flow/Logic App required: An App Registration A Client ID + Client Secre...