Customer-Managed key provisioning steps (assuming there already is an Azure Key Vault):
Step 1: Enable soft delete for the key vault.
The Azure Key Vault must be configured as recoverable, to protect your key and the access to your data in Azure Monitor. You can verify this configuration under properties in your Key Vault, both Soft delete and Purge protection should be enabled.
Step 2: Create a Log Analytics cluster.
Clusters uses managed identity for data encryption with your Key Vault. Configure identity type property to SystemAssigned when creating your cluster to allow access to your Key Vault for "wrap" and "unwrap" operations.
Step 3: Grant permissions to the key vault.
Grant Key Vault permissions.
Create Access Policy in Key Vault to grants permissions to your cluster. These permissions are used by the underlay cluster storage. Open your Key Vault in
Azure portal and click Access Policies then + Add Access Policy to create a policy with these settings:
Key permissionsג€"select Get, Wrap Key and Unwrap Key.
Etc.
1. Creating cluster
2. Granting permissions to your Key Vault
3. Updating cluster with key identifier details
4. Linking workspaces
Step 4: Link workspace -
Link workspace to cluster.
This step should be performed only after the cluster provisioning. If you link workspaces and ingest data prior to the provisioning, ingested data will be dropped and won't be recoverable.
Reference:
https://docs.microsoft.com/en-us/azure/azure-monitor/logs/customer-managed-keys