Challenge 41: Azure DevOps permissions and service connections

Exam skills covered

Implement and manage Azure DevOps service connections and personal access tokens
Design and implement permissions and security groups in Azure DevOps
Recommend appropriate access levels
Configure projects and teams in Azure DevOps

Scenario

Contoso Ltd's Azure DevOps organization has grown organically over three years. All 200 users are members of the Project Administrators group because "it was easier." Every pipeline uses a single service connection named Azure-All with Contributor access to the entire production subscription. The PAT used by the CI integration was created by a former employee with full scope and no expiration. You must redesign the permission model to implement least-privilege access.

Prerequisites

Azure DevOps organization with Project Collection Administrator access
Azure subscription with Owner role
Azure CLI with azure-devops extension installed
At least one Azure DevOps project

Tasks

Task 1: Design security groups (per-team, per-role)

Create a group structure that maps to Contoso's team organization.

# Install the Azure DevOps CLI extension
az extension add --name azure-devops

# Set the default organization and project
az devops configure --defaults organization=https://dev.azure.com/contoso project=ContosoWeb

# Create team-specific security groups
az devops security group create \
  --name "Contoso-Backend-Developers" \
  --description "Backend development team - write access to backend repos" \
  --project ContosoWeb

az devops security group create \
  --name "Contoso-Frontend-Developers" \
  --description "Frontend development team - write access to frontend repos" \
  --project ContosoWeb

az devops security group create \
  --name "Contoso-DevOps-Engineers" \
  --description "Platform team - manage pipelines and service connections" \
  --project ContosoWeb

az devops security group create \
  --name "Contoso-Release-Managers" \
  --description "Approve and manage production releases" \
  --project ContosoWeb

az devops security group create \
  --name "Contoso-Stakeholders" \
  --description "View work items and dashboards only" \
  --project ContosoWeb

Remove users from Project Administrators:

# List current Project Administrators members
az devops security group membership list \
  --id "vstfs:///Classification/TeamProject/<project-id>\\Project Administrators"

# Remove a user from Project Administrators
az devops security group membership remove \
  --group "vstfs:///Classification/TeamProject/<project-id>\\Project Administrators" \
  --member-id <user-descriptor>

# Add user to the appropriate team group instead
az devops security group membership add \
  --group "vstfs:///Classification/TeamProject/<project-id>\\Contoso-Backend-Developers" \
  --member-id <user-descriptor>

Task 2: Configure project-level permissions

Set granular permissions for each group.

# Get the security namespace IDs
az devops security permission namespace list --query "[].{name:name, id:namespaceId}" -o table

# Key namespace IDs:
# Build: 33344d9c-fc72-4d6f-aba5-fa317101a7e9
# Git Repositories: 2e9eb7ed-3c0a-47d4-87c1-0ffdd275fd87
# ReleaseManagement: c788c23e-1b46-4162-8f5e-d7585343b5de

# Grant build permissions to DevOps Engineers group
az devops security permission update \
  --namespace-id 33344d9c-fc72-4d6f-aba5-fa317101a7e9 \
  --subject <devops-engineers-group-descriptor> \
  --token "<project-id>" \
  --allow-bit 1535 \
  --deny-bit 0

# Restrict developers to only queue builds (not edit pipelines)
az devops security permission update \
  --namespace-id 33344d9c-fc72-4d6f-aba5-fa317101a7e9 \
  --subject <backend-developers-group-descriptor> \
  --token "<project-id>" \
  --allow-bit 128 \
  --deny-bit 0

Permission matrix for Contoso:

Permission	Backend Devs	Frontend Devs	DevOps Engineers	Release Managers
View builds	Yes	Yes	Yes	Yes
Queue builds	Yes	Yes	Yes	Yes
Edit build pipelines	No	No	Yes	No
Create releases	No	No	Yes	Yes
Approve releases	No	No	No	Yes
Manage service connections	No	No	Yes	No
Edit project settings	No	No	Yes	No

Task 3: Set up service connections with minimum permissions

Replace the overly permissive Azure-All connection with scoped connections.

# Create a resource group per environment
az group create --name rg-contoso-dev --location eastus
az group create --name rg-contoso-staging --location eastus
az group create --name rg-contoso-prod --location eastus

# Create service principals scoped to each environment
az ad sp create-for-rbac \
  --name "sp-ado-contoso-dev" \
  --role "Contributor" \
  --scopes "/subscriptions/<sub-id>/resourceGroups/rg-contoso-dev"

az ad sp create-for-rbac \
  --name "sp-ado-contoso-staging" \
  --role "Contributor" \
  --scopes "/subscriptions/<sub-id>/resourceGroups/rg-contoso-staging"

az ad sp create-for-rbac \
  --name "sp-ado-contoso-prod" \
  --role "Contributor" \
  --scopes "/subscriptions/<sub-id>/resourceGroups/rg-contoso-prod"

Create service connections in Azure DevOps:

# Create the development service connection
az devops service-endpoint azurerm create \
  --name "Azure-Dev" \
  --azure-rm-service-principal-id <dev-sp-app-id> \
  --azure-rm-subscription-id <subscription-id> \
  --azure-rm-subscription-name "Contoso Dev" \
  --azure-rm-tenant-id <tenant-id>

# Create staging and production connections similarly
az devops service-endpoint azurerm create \
  --name "Azure-Staging" \
  --azure-rm-service-principal-id <staging-sp-app-id> \
  --azure-rm-subscription-id <subscription-id> \
  --azure-rm-subscription-name "Contoso Staging" \
  --azure-rm-tenant-id <tenant-id>

az devops service-endpoint azurerm create \
  --name "Azure-Prod" \
  --azure-rm-service-principal-id <prod-sp-app-id> \
  --azure-rm-subscription-id <subscription-id> \
  --azure-rm-subscription-name "Contoso Production" \
  --azure-rm-tenant-id <tenant-id>

Task 4: Federated service connections (workload identity)

Create a service connection using workload identity federation to eliminate secrets.

# Create the app registration
az ad app create --display-name "sp-ado-contoso-federated"

APP_OBJECT_ID=$(az ad app list --display-name "sp-ado-contoso-federated" --query "[0].id" -o tsv)
APP_CLIENT_ID=$(az ad app list --display-name "sp-ado-contoso-federated" --query "[0].appId" -o tsv)

# Create the federated credential for the service connection
az ad app federated-credential create \
  --id $APP_OBJECT_ID \
  --parameters '{
    "name": "ado-contoso-prod-connection",
    "issuer": "https://vstoken.dev.azure.com/<org-guid>",
    "subject": "sc://contoso/ContosoWeb/Azure-Prod-Federated",
    "audiences": ["api://AzureADTokenExchange"]
  }'

# Create service principal and assign role
az ad sp create --id $APP_CLIENT_ID
az role assignment create \
  --assignee $APP_CLIENT_ID \
  --role "Contributor" \
  --scope "/subscriptions/<sub-id>/resourceGroups/rg-contoso-prod"

In Azure DevOps, create the service connection using "Workload Identity federation (manual)" and provide the app registration details.

Task 5: Pipeline permissions (restrict service connection usage)

Restrict which pipelines can use each service connection.

# Get the service endpoint ID
ENDPOINT_ID=$(az devops service-endpoint list \
  --query "[?name=='Azure-Prod'].id" -o tsv)

# Disable "Grant access permission to all pipelines"
az devops service-endpoint update \
  --id $ENDPOINT_ID \
  --enable-for-all false

Use environments with approval checks in the pipeline:

# azure-pipelines.yml
trigger:
  branches:
    include:
      - main

stages:
  - stage: Build
    jobs:
      - job: BuildApp
        pool:
          vmImage: 'ubuntu-latest'
        steps:
          - script: echo "Building application"

  - stage: DeployProd
    dependsOn: Build
    jobs:
      - deployment: DeployToProd
        pool:
          vmImage: 'ubuntu-latest'
        environment: 'production'
        strategy:
          runOnce:
            deploy:
              steps:
                - task: AzureCLI@2
                  inputs:
                    azureSubscription: 'Azure-Prod-Federated'
                    scriptType: 'bash'
                    scriptLocation: 'inlineScript'
                    inlineScript: |
                      az group show --name rg-contoso-prod

Configure environment approvals:

Pipelines > Environments > production > Approvals and checks
Add "Approvals" with the Contoso-Release-Managers group
Add "Branch control" to restrict to refs/heads/main only
Add "Business hours" to prevent deployments outside working hours

Task 6: Access levels (Basic, Stakeholder, Visual Studio)

Access level	Cost	Key capabilities	Best for
Stakeholder	Free	View backlogs, create work items, view dashboards, view wiki	Product owners, managers, executives
Basic	Paid (first 5 free)	Full Boards, Repos, Pipelines, Test Plans (limited)	Developers, testers, DevOps engineers
Basic + Test Plans	Paid add-on	Full Test Plans, test case management	Dedicated QA engineers
Visual Studio subscription	Included	Same as Basic, included with VS Enterprise/Professional	Developers with VS subscriptions

# List current access level assignments
az devops user list --query "items[].{name:user.displayName, level:accessLevel.accountLicenseType}" -o table

# Change a user's access level to Stakeholder
az devops user update \
  --user user@contoso.com \
  --license-type stakeholder

# Add a new user with Basic access
az devops user add \
  --email-id newdev@contoso.com \
  --license-type express \
  --send-email-invite true

Task 7: PAT lifecycle management and policies

Configure organization-level PAT policies:

Organization Settings > Policies (via web portal):
- Restrict creation of full-scoped PATs: Enabled
- Restrict creation of global PATs: Enabled (force project-scoped)
- Enforce maximum PAT lifetime: 90 days
- Restrict creation of PATs with admin scope: Enabled

PAT audit and revocation:

# Via REST API: List all PATs for auditing
curl -u :$PAT \
  "https://vssps.dev.azure.com/contoso/_apis/tokens/pats?api-version=7.1-preview.1" \
  | jq '.patTokens[] | {displayName, scope, validTo}'

# Revoke a specific PAT
curl -X DELETE -u :$ADMIN_PAT \
  "https://vssps.dev.azure.com/contoso/_apis/tokens/pats?authorizationId=<pat-auth-id>&api-version=7.1-preview.1"

Create a scheduled pipeline that audits PAT usage:

# azure-pipelines.yml
schedules:
  - cron: "0 8 * * 1"
    displayName: Weekly PAT audit
    branches:
      include:
        - main

pool:
  vmImage: 'ubuntu-latest'

steps:
  - task: PowerShell@2
    inputs:
      targetType: 'inline'
      script: |
        $headers = @{
          Authorization = "Basic $([Convert]::ToBase64String([Text.Encoding]::ASCII.GetBytes(":$(PAT_AUDIT_TOKEN)")))"
        }
        $uri = "https://vssps.dev.azure.com/contoso/_apis/tokens/pats?api-version=7.1-preview.1"
        $response = Invoke-RestMethod -Uri $uri -Headers $headers
        $expiringSoon = $response.patTokens | Where-Object {
          $_.validTo -lt (Get-Date).AddDays(14) -and $_.validTo -gt (Get-Date)
        }
        if ($expiringSoon) {
          Write-Host "##vso[task.logissue type=warning]PATs expiring within 14 days:"
          $expiringSoon | ForEach-Object {
            Write-Host "  - $($_.displayName): expires $($_.validTo)"
          }
        }

Break & fix

Break scenario 1: Pipeline fails with resource authorization error

A developer creates a new pipeline and references the Azure-Prod service connection. The pipeline fails with "There was a resource authorization problem."

Cause: The service connection has "Grant access permission to all pipelines" disabled, and this pipeline has not been explicitly authorized.

Diagnosis: Check the pipeline run log for the authorization error. The UI will show a "Permit" button if you have sufficient permissions.

Show solution

Fix:

Navigate to Project Settings > Service connections > Azure-Prod > Security
Under "Pipeline permissions," click the "+" button and add the specific pipeline
Alternatively, when the pipeline run shows the authorization prompt, click "Permit"

Break scenario 2: User cannot view work items after group restructuring

After moving users from Project Administrators to team-specific groups, users report they cannot view work items.

Cause: The custom groups do not inherit from the "Contributors" built-in group, which has default read access to work items.

Show solution

Fix:

# Make the custom group a member of Contributors (inherits basic permissions)
az devops security group membership add \
  --group "vstfs:///Classification/TeamProject/<project-id>\\Contributors" \
  --member-id <custom-group-descriptor>

Knowledge check

1. Contoso wants to ensure that only the Production-Deploy pipeline can use the 'Azure-Prod' service connection. What should you configure?

2. Contoso has 200 users: 150 developers, 30 product managers who only need work item access, and 20 executives who view dashboards. What is the most cost-effective access level assignment?

3. An organization policy requires all PATs to be project-scoped with a maximum lifetime of 90 days. Where should you configure these restrictions?

4. A team needs to deploy to both development and production environments from one pipeline. Production requires release manager approval. What is the correct configuration?

Cleanup

# Delete service connections
az devops service-endpoint delete --id <endpoint-id> --yes

# Delete security groups
az devops security group delete --id <group-descriptor>

# Delete service principals
az ad sp delete --id $(az ad sp list --display-name "sp-ado-contoso-dev" --query "[0].id" -o tsv)
az ad sp delete --id $(az ad sp list --display-name "sp-ado-contoso-staging" --query "[0].id" -o tsv)
az ad sp delete --id $(az ad sp list --display-name "sp-ado-contoso-prod" --query "[0].id" -o tsv)
az ad app delete --id $APP_OBJECT_ID

# Delete resource groups
az group delete --name rg-contoso-dev --yes --no-wait
az group delete --name rg-contoso-staging --yes --no-wait
az group delete --name rg-contoso-prod --yes --no-wait

Exam skills covered​

Scenario​

Prerequisites​

Tasks​

Task 1: Design security groups (per-team, per-role)​

Task 2: Configure project-level permissions​

Task 3: Set up service connections with minimum permissions​

Task 4: Federated service connections (workload identity)​

Task 5: Pipeline permissions (restrict service connection usage)​

Task 6: Access levels (Basic, Stakeholder, Visual Studio)​

Task 7: PAT lifecycle management and policies​

Break & fix​

Break scenario 1: Pipeline fails with resource authorization error​

Break scenario 2: User cannot view work items after group restructuring​

Knowledge check​

Cleanup​