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Managed Identities are cloud based Identities which are offered in SaaS model where you delegate all the Identity Management including credentials storage, security and a lot of other related aspects to cloud Provider. Cognito from AWS and Active Directory (AAD and AAD B2C) from Azure are prominent cloud provider followed by Auth0.

Security is the biggest risk of connected world and once the site get compromised, hackers try to target to capture user data to get personal private data of users including passwords and attempt privileged access to site. Kicking out the core security part (Identity) from the application, itself removes a lot of surface area that is open for attacks. Also, with this your application moves to more connected and standardized approach since this opens a whole world of Single Sign On and connected world.

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