@v-girip Azure Disk Encryption uses Azure Key Vault to control and manage disk encryption keys and secrets. For more information about key vaults, see Get started with Azure Key Vault and Secure your key vault.
Configure Azure Key Vault – Ensure that key vault to which keys and secrets need to be restored is already present. Refer the article Get Started with Azure Key Vault for details about key vault management.
BitLocker is an industry-recognized Windows volume encryption technology that's used to enable disk encryption on Windows VMs.
Azure Disk Encryption for Windows VMs uses the BitLocker feature of Windows to provide full disk encryption of the OS disk and data disks. Additionally, it provides encryption of the temporary disk when the VolumeType parameter is All. The content flows encrypted from the VM to the Storage backend. Thereby, providing end-to-end encryption with a customer-managed key.
Azure Disk Encryption selects the encryption method in BitLocker based on the version
Currently Generation 2 VMs do not support Azure Disk Encryption. See Support for Generation 2 VMs on Azure for details.
See Supported VMs and operating systems.
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