An Azure network security service that is used to protect Azure Virtual Network resources.
Hello Murali, Greetings! Thanks for raising this question in the Q&A forum.
This is a good real world validation question, and your test results actually make sense once you separate two different things that are easy to conflate here: how Data Factory authenticates itself as a trusted service, versus whether the target resource's firewall is configured to accept trusted service connections at all.
Here is the distinction:
What the Trusted service setting (Legacy vs Modern) actually controls This setting governs the mechanism ADF uses to prove to Azure Storage or Key Vault that the request is genuinely coming from your Data Factory's managed identity, rather than from an arbitrary caller pretending to be a trusted service. Legacy relied on network-level trust (essentially, requests appearing to originate from Microsoft's backbone were implicitly trusted). Modern requires ADF to present a managed identity token that Storage or Key Vault can cryptographically validate as belonging to your specific factory's managed identity. This is the part being retired on August 1, 2026, the Legacy, token-less trust mechanism.
What switching to Modern does not eliminate Even with Modern trusted service auth working correctly, the target resource (Storage account or Key Vault) still needs:
Allow trusted Microsoft services to bypass this firewall enabled on its firewall/networking settings The Data Factory's managed identity explicitly granted permission on that resource, either through an RBAC role assignment (for Storage) or an access policy/RBAC role (for Key Vault) Modern trusted service auth changes how the trust is proven, it does not remove the requirement that trusted service bypass be explicitly enabled and permissioned on the resource itself. So when you disabled the Key Vault's trusted services firewall exception, you removed the mechanism entirely, not just the legacy half of it, which is exactly why the pipeline failed regardless of the ADF-side Modern setting.
**So to directly answer your question** Yes, changing the ADF Trusted service setting to Modern is the correct validation step for this specific retirement, and your successful pipeline run after that switch confirms your factory is no longer dependent on the legacy mechanism being retired. You do not need to migrate to private endpoint or managed private endpoint purely because of this retirement, as long as you keep **Allow trusted Microsoft services to bypass this firewall** enabled on both the Storage account and Key Vault, and keep the managed identity permissions in place, since that combination is what Modern trusted service auth still relies on.
**When private endpoint/managed private endpoint becomes relevant instead** That path is a separate, stronger networking option, not a required replacement for trusted service auth. You would move to it if your organization wants to eliminate reliance on the trusted service bypass model altogether, for example, for stricter network isolation policies that don't want any firewall bypass exception, even a modern MI-token validated one, enabled at all.
**Recommended validation across your other ADFs** Since this is a factory-level setting, repeat this same test methodically for each ADF instance:
```yaml
1. Open ADF Studio > Manage > Factory settings
- Confirm Trusted service is set to Modern
- Run a pipeline that reads from both the Storage linked service and the Key Vault linked service
- Confirm both succeed with trusted service firewall exceptions still enabled (not disabled) on the target resources
Since this retirement is quite recent and specific, I'd also recommend cross-checking your findings directly against the official retirement notice text for your exact ADF version, since Microsoft occasionally updates scoping details on these notices as the retirement date approaches.
If this answer helps you kindly accept the answer which will help others who have similar questions.
Best Regards,
Jerald Felix.