Context will be Azure, Azure SQL, ArcGIS Enterprise (Server, Portal) and Pro:
Due to increasing security risks and concerns, ArcGIS Pro and Server support for Entra AD authentication using service principal or user managed identity should be strongly considered and implemented sooner rather than later. Although local database accounts can be used, the management and security of accounts in Azure/Entra AD is much easier and safer. Aside from the currently supported "Azure Active Directory Universal with MFA" or "Azure Active Directory Password", authentication types such as with user managed identities and service principals are already supported in tools like SQL Server Management Studio. This would greatly enhance the capabilities of tools like ArcGIS Server to securely operate on behalf of users with restricted privileges.