feat: The KMS auth policy has been updated so its now scoped to the exact KMS key. If upgrading from an older version this will recreate the auth policy, however it will create the new one before destroying the old one so there is no disruption to every day services.<br> The kms_instance_guid input has been removed from the module. It is now programmticallty determined from the value of kms_key_crn<br>- A new boolean input is_hpcs_key has been added to the module and should be set to true if the key specified in kms_key_crn is from a Hyper Protect instance. Leave it at flase if using Key Protect. If set to true, a second auth policy is created which allows the Secrets Manager instance Viewer access to the HPCS instance. (#295)

Author: arya-girish-k

README.md

@@ -76,6 +76,7 @@ You need the following permissions to run this module.
 | Name | Source | Version |
 |------|--------|---------|
 | <a name="module_cbr_rule"></a> [cbr\_rule](#module\_cbr\_rule) | terraform-ibm-modules/cbr/ibm//modules/cbr-rule-module | 1.29.0 |
+| <a name="module_kms_key_crn_parser"></a> [kms\_key\_crn\_parser](#module\_kms\_key\_crn\_parser) | terraform-ibm-modules/common-utilities/ibm//modules/crn-parser | 1.1.0 |
 | <a name="module_secrets"></a> [secrets](#module\_secrets) | ./modules/secrets | n/a |
 
 ### Resources
@@ -86,9 +87,11 @@ You need the following permissions to run this module.
 | [ibm_iam_authorization_policy.iam_groups_policy](https://registry.terraform.io/providers/IBM-Cloud/ibm/latest/docs/resources/iam_authorization_policy) | resource |
 | [ibm_iam_authorization_policy.iam_identity_policy](https://registry.terraform.io/providers/IBM-Cloud/ibm/latest/docs/resources/iam_authorization_policy) | resource |
 | [ibm_iam_authorization_policy.kms_policy](https://registry.terraform.io/providers/IBM-Cloud/ibm/latest/docs/resources/iam_authorization_policy) | resource |
+| [ibm_iam_authorization_policy.secrets_manager_hpcs_policy](https://registry.terraform.io/providers/IBM-Cloud/ibm/latest/docs/resources/iam_authorization_policy) | resource |
 | [ibm_resource_instance.secrets_manager_instance](https://registry.terraform.io/providers/IBM-Cloud/ibm/latest/docs/resources/resource_instance) | resource |
 | [ibm_sm_en_registration.sm_en_registration](https://registry.terraform.io/providers/IBM-Cloud/ibm/latest/docs/resources/sm_en_registration) | resource |
 | [time_sleep.wait_for_authorization_policy](https://registry.terraform.io/providers/hashicorp/time/latest/docs/resources/sleep) | resource |
+| [time_sleep.wait_for_sm_hpcs_authorization_policy](https://registry.terraform.io/providers/hashicorp/time/latest/docs/resources/sleep) | resource |
 | [ibm_resource_instance.sm_instance](https://registry.terraform.io/providers/IBM-Cloud/ibm/latest/docs/data-sources/resource_instance) | data source |
 
 ### Inputs
@@ -100,8 +103,8 @@ You need the following permissions to run this module.
 | <a name="input_enable_event_notification"></a> [enable\_event\_notification](#input\_enable\_event\_notification) | Set this to true to enable lifecycle notifications for your Secrets Manager instance by connecting an Event Notifications service. When setting this to true, a value must be passed for `existing_en_instance_crn` and `existing_sm_instance_crn` must be null. | `bool` | `false` | no |
 | <a name="input_endpoint_type"></a> [endpoint\_type](#input\_endpoint\_type) | The type of endpoint (public or private) to connect to the Secrets Manager API. The Terraform provider uses this endpoint type to interact with the Secrets Manager API and configure Event Notifications. | `string` | `"public"` | no |
 | <a name="input_existing_en_instance_crn"></a> [existing\_en\_instance\_crn](#input\_existing\_en\_instance\_crn) | The CRN of the Event Notifications service to enable lifecycle notifications for your Secrets Manager instance. | `string` | `null` | no |
-| <a name="input_existing_kms_instance_guid"></a> [existing\_kms\_instance\_guid](#input\_existing\_kms\_instance\_guid) | The GUID of the Hyper Protect Crypto Services or Key Protect instance in which the key specified in `kms_key_crn` is coming from. Required only if `kms_encryption_enabled` is set to true, and `skip_kms_iam_authorization_policy` is set to false. | `string` | `null` | no |
 | <a name="input_existing_sm_instance_crn"></a> [existing\_sm\_instance\_crn](#input\_existing\_sm\_instance\_crn) | An existing Secrets Manager instance CRN. If not provided an new instance will be provisioned. | `string` | `null` | no |
+| <a name="input_is_hpcs_key"></a> [is\_hpcs\_key](#input\_is\_hpcs\_key) | Set it to true if the key provided through the `kms_key_crn` is Hyper Protect Crypto Services key. | `bool` | `false` | no |
 | <a name="input_kms_encryption_enabled"></a> [kms\_encryption\_enabled](#input\_kms\_encryption\_enabled) | Set this to true to control the encryption keys used to encrypt the data that you store in Secrets Manager. If set to false, the data that you store is encrypted at rest by using envelope encryption. For more details, see https://cloud.ibm.com/docs/secrets-manager?topic=secrets-manager-mng-data&interface=ui#about-encryption. | `bool` | `false` | no |
 | <a name="input_kms_key_crn"></a> [kms\_key\_crn](#input\_kms\_key\_crn) | The root key CRN of a Key Management Service like Key Protect or Hyper Protect Crypto Services (HPCS) that you want to use for encryption. Only used if `kms_encryption_enabled` is set to true. | `string` | `null` | no |
 | <a name="input_region"></a> [region](#input\_region) | The region where the resource will be provisioned.Its not required if passing a value for `existing_sm_instance_crn`. | `string` | `null` | no |

examples/complete/main.tf

@@ -32,7 +32,6 @@ module "event_notification" {
   name              = "${var.prefix}-en"
   tags              = var.resource_tags
   plan              = "lite"
-  service_endpoints = "public"
   region            = var.en_region
 }
 
@@ -55,18 +54,18 @@ resource "time_sleep" "wait_for_en_policy" {
 }
 
 module "secrets_manager" {
-  depends_on                 = [time_sleep.wait_for_en_policy]
-  source                     = "../.."
-  resource_group_id          = module.resource_group.resource_group_id
-  region                     = var.region
-  secrets_manager_name       = "${var.prefix}-secrets-manager" #tfsec:ignore:general-secrets-no-plaintext-exposure
-  sm_service_plan            = var.sm_service_plan
-  sm_tags                    = var.resource_tags
-  kms_encryption_enabled     = true
-  existing_kms_instance_guid = module.key_protect.kms_guid
-  kms_key_crn                = module.key_protect.keys["${var.prefix}-sm.${var.prefix}-sm-key"].crn
-  enable_event_notification  = true
-  existing_en_instance_crn   = module.event_notification.crn
+  depends_on                = [time_sleep.wait_for_en_policy]
+  source                    = "../.."
+  resource_group_id         = module.resource_group.resource_group_id
+  region                    = var.region
+  secrets_manager_name      = "${var.prefix}-secrets-manager" #tfsec:ignore:general-secrets-no-plaintext-exposure
+  sm_service_plan           = var.sm_service_plan
+  sm_tags                   = var.resource_tags
+  kms_encryption_enabled    = true
+  is_hpcs_key               = false
+  kms_key_crn               = module.key_protect.keys["${var.prefix}-sm.${var.prefix}-sm-key"].crn
+  enable_event_notification = true
+  existing_en_instance_crn  = module.event_notification.crn
   secrets = [
     {
       secret_group_name = "${var.prefix}-secret-group"

examples/fscloud/main.tf

@@ -51,15 +51,29 @@ module "event_notification" {
   region            = var.region
 }
 
+##############################################################################
+# Parse info from KMS key crn
+##############################################################################
+
+module "kms_key_crn_parser" {
+  source  = "terraform-ibm-modules/common-utilities/ibm//modules/crn-parser"
+  version = "1.1.0"
+  crn     = var.kms_key_crn
+}
+
+locals {
+  kms_service = module.kms_key_crn_parser.service_name
+}
+
 module "secrets_manager" {
-  source                     = "../../modules/fscloud"
-  resource_group_id          = module.resource_group.resource_group_id
-  region                     = var.region
-  secrets_manager_name       = "${var.prefix}-secrets-manager" #tfsec:ignore:general-secrets-no-plaintext-exposure
-  sm_tags                    = var.resource_tags
-  existing_kms_instance_guid = var.existing_kms_instance_guid
-  kms_key_crn                = var.kms_key_crn
-  existing_en_instance_crn   = module.event_notification.crn
+  source                   = "../../modules/fscloud"
+  resource_group_id        = module.resource_group.resource_group_id
+  region                   = var.region
+  secrets_manager_name     = "${var.prefix}-secrets-manager" #tfsec:ignore:general-secrets-no-plaintext-exposure
+  sm_tags                  = var.resource_tags
+  is_hpcs_key              = local.kms_service == "hs-crypto" ? true : false
+  kms_key_crn              = var.kms_key_crn
+  existing_en_instance_crn = module.event_notification.crn
   cbr_rules = [
     {
       description      = "${var.prefix}-secrets-manager access only from vpc"

examples/fscloud/variables.tf

@@ -32,11 +32,6 @@ variable "resource_tags" {
 # Key Management Service (KMS)
 ##############################################################################
 
-variable "existing_kms_instance_guid" {
-  type        = string
-  description = "The GUID of the Hyper Protect Crypto Services instance in which the key specified in `kms_key_crn` is coming from."
-}
-
 variable "kms_key_crn" {
   type        = string
   description = "The root key CRN of Hyper Protect Crypto Services (HPCS) that you want to use for encryption."

main.tf

@@ -6,17 +6,19 @@
 locals {
   # Validation (approach based on https://github.com/hashicorp/terraform/issues/25609#issuecomment-1057614400)
   # tflint-ignore: terraform_unused_declarations
-  validate_kms_values = (!var.kms_encryption_enabled && var.kms_key_crn != null && var.existing_sm_instance_crn == null) ? tobool("When passing values for var.kms_key_crn, you must set 'kms_encryption_enabled' to true. Otherwise set 'kms_encryption_enabled' to false to use default encryption") : (!var.kms_encryption_enabled && var.existing_kms_instance_guid != null) ? tobool("When passing values for var.existing_kms_instance_guid, you must set var.kms_encryption_enabled to true. Otherwise unset them to use default encryption") : true
+  validate_kms_values = (!var.kms_encryption_enabled && var.kms_key_crn != null && var.existing_sm_instance_crn == null) ? tobool("When passing values for var.kms_key_crn, you must set 'kms_encryption_enabled' to true. Otherwise set 'kms_encryption_enabled' to false to use default encryption") : true
   # tflint-ignore: terraform_unused_declarations
   validate_kms_vars = var.kms_encryption_enabled && var.kms_key_crn == null && var.existing_sm_instance_crn == null ? tobool("When setting var.kms_encryption_enabled to true, a value must be passed for var.kms_key_crn") : true
   # tflint-ignore: terraform_unused_declarations
-  validate_auth_policy = var.kms_encryption_enabled && var.skip_kms_iam_authorization_policy == false && var.existing_kms_instance_guid == null && var.existing_sm_instance_crn == null ? tobool("When var.skip_kms_iam_authorization_policy is set to false, and var.kms_encryption_enabled to true, a value must be passed for var.existing_kms_instance_guid in order to create the auth policy.") : true
+  validate_auth_policy = var.kms_encryption_enabled && var.skip_kms_iam_authorization_policy == false && var.kms_key_crn == null && var.existing_sm_instance_crn == null ? tobool("When var.skip_kms_iam_authorization_policy is set to false, and var.kms_encryption_enabled to true, a value must be passed for var.kms_key_crn in order to create the auth policy.") : true
   # tflint-ignore: terraform_unused_declarations
   validate_event_notification = var.enable_event_notification && var.existing_en_instance_crn == null ? tobool("When setting var.enable_event_notification to true, a value must be passed for var.existing_en_instance_crn") : true
   # tflint-ignore: terraform_unused_declarations
   validate_endpoint = var.endpoint_type == "public" && var.allowed_network == "private-only" && var.existing_sm_instance_crn == null ? tobool("It is not allowed to have conflicting var.endpoint_type and var.allowed_network values.") : true
   # tflint-ignore: terraform_unused_declarations
   validate_region = var.existing_sm_instance_crn == null && var.region == null ? tobool("When existing_sm_instance_crn is null, a value must be passed for var.region") : true
+  # tflint-ignore: terraform_unused_declarations
+  validate_is_hpcs_key = var.is_hpcs_key && local.kms_service_name != "hs-crypto" ? tobool("When is_hpcs_key is set to true then the key provided through kms_key_crn must be a Hyper Protect Crypto Services key") : true
 }
 
 locals {
@@ -34,7 +36,7 @@ data "ibm_resource_instance" "sm_instance" {
 # Create Secrets Manager Instance
 resource "ibm_resource_instance" "secrets_manager_instance" {
   count             = var.existing_sm_instance_crn == null ? 1 : 0
-  depends_on        = [time_sleep.wait_for_authorization_policy]
+  depends_on        = [time_sleep.wait_for_authorization_policy, time_sleep.wait_for_sm_hpcs_authorization_policy]
   name              = var.secrets_manager_name
   service           = "secrets-manager"
   plan              = var.sm_service_plan
@@ -43,7 +45,7 @@ resource "ibm_resource_instance" "secrets_manager_instance" {
   tags              = var.sm_tags
   parameters = {
     "allowed_network" = var.allowed_network
-    "kms_instance"    = var.existing_kms_instance_guid
+    "kms_instance"    = local.kms_instance_guid
     "kms_key"         = var.kms_key_crn
   }
 
@@ -71,23 +73,68 @@ resource "ibm_iam_authorization_policy" "iam_groups_policy" {
   description                 = "Allows Secrets Manager instance ${local.secrets_manager_guid} `Groups Service Member Manage` access to the IAM Groups service to enable creating IAM credentials."
 }
 
+#######################################################################################################################
+# KMS Key
+#######################################################################################################################
 locals {
-  # determine which service name to use for the policy
-  kms_service_name = var.kms_encryption_enabled && var.kms_key_crn != null ? (
-    can(regex(".*kms.*", var.kms_key_crn)) ? "kms" : (
-      can(regex(".*hs-crypto.*", var.kms_key_crn)) ? "hs-crypto" : null
-    )
-  ) : null
+  create_kms_auth_policy  = var.kms_encryption_enabled && !var.skip_kms_iam_authorization_policy && var.existing_sm_instance_crn == null
+  create_hpcs_auth_policy = local.create_kms_auth_policy == true && var.is_hpcs_key ? 1 : 0
+
+  kms_service_name  = var.kms_encryption_enabled && var.kms_key_crn != null ? module.kms_key_crn_parser[0].service_name : null
+  kms_account_id    = var.kms_encryption_enabled && var.kms_key_crn != null ? module.kms_key_crn_parser[0].account_id : null
+  kms_key_id        = var.kms_encryption_enabled && var.kms_key_crn != null ? module.kms_key_crn_parser[0].resource : null
+  kms_instance_guid = var.kms_encryption_enabled && var.kms_key_crn != null ? module.kms_key_crn_parser[0].service_instance : null
+}
+
+########################################################################################################################
+# Parse KMS info from CRN
+########################################################################################################################
+
+module "kms_key_crn_parser" {
+  count   = local.create_kms_auth_policy ? 1 : 0
+  source  = "terraform-ibm-modules/common-utilities/ibm//modules/crn-parser"
+  version = "1.1.0"
+  crn     = var.kms_key_crn
 }
 
+# Create auth policy (scoped to exact KMS key)
 resource "ibm_iam_authorization_policy" "kms_policy" {
-  count                       = var.kms_encryption_enabled && !var.skip_kms_iam_authorization_policy && var.existing_sm_instance_crn == null ? 1 : 0
-  source_service_name         = "secrets-manager"
-  source_resource_group_id    = var.resource_group_id
-  target_service_name         = local.kms_service_name
-  target_resource_instance_id = var.existing_kms_instance_guid
-  roles                       = ["Reader"]
-  description                 = "Allow all Secrets Manager instances in the resource group ${var.resource_group_id} to read from the ${local.kms_service_name} instance GUID ${var.existing_kms_instance_guid}"
+  count                    = local.create_kms_auth_policy ? 1 : 0
+  source_service_name      = "secrets-manager"
+  source_resource_group_id = var.resource_group_id
+  roles                    = ["Reader"]
+  description              = "Allow all Secrets Manager instances in the resource group ${var.resource_group_id} to read the ${local.kms_service_name} key ${local.kms_key_id} from the instance GUID ${local.kms_instance_guid}."
+  resource_attributes {
+    name     = "serviceName"
+    operator = "stringEquals"
+    value    = local.kms_service_name
+  }
+  resource_attributes {
+    name     = "accountId"
+    operator = "stringEquals"
+    value    = local.kms_account_id
+  }
+  resource_attributes {
+    name     = "serviceInstance"
+    operator = "stringEquals"
+    value    = local.kms_instance_guid
+  }
+  resource_attributes {
+    name     = "resourceType"
+    operator = "stringEquals"
+    value    = "key"
+  }
+  resource_attributes {
+    name     = "resource"
+    operator = "stringEquals"
+    value    = local.kms_key_id
+  }
+  # Scope of policy now includes the key, so ensure to create new policy before
+  # destroying old one to prevent any disruption to every day services.
+  lifecycle {
+    create_before_destroy = true
+  }
+
 }
 
 # workaround for https://github.com/IBM-Cloud/terraform-provider-ibm/issues/4478
@@ -98,6 +145,24 @@ resource "time_sleep" "wait_for_authorization_policy" {
   create_duration = "30s"
 }
 
+# if using HPCS ,create a second IAM authorization that assigns the Viewer platform access in Hyper Protect Crypto Services .[Learn more](https://cloud.ibm.com/docs/secrets-manager?topic=secrets-manager-mng-data#using-byok)
+resource "ibm_iam_authorization_policy" "secrets_manager_hpcs_policy" {
+  count                       = local.create_hpcs_auth_policy
+  source_service_name         = "secrets-manager"
+  source_resource_group_id    = var.resource_group_id
+  target_service_name         = local.kms_service_name
+  target_resource_instance_id = local.kms_instance_guid
+  roles                       = ["Viewer"]
+  description                 = "Allow all Secrets Manager instances in the resource group ${var.resource_group_id} viewer access to the ${local.kms_service_name} instance GUID ${local.kms_instance_guid}."
+}
+
+# workaround for https://github.com/IBM-Cloud/terraform-provider-ibm/issues/4478
+resource "time_sleep" "wait_for_sm_hpcs_authorization_policy" {
+  count      = local.create_hpcs_auth_policy
+  depends_on = [ibm_iam_authorization_policy.secrets_manager_hpcs_policy]
+
+  create_duration = "30s"
+}
 
 locals {
   secrets_manager_guid   = var.existing_sm_instance_crn != null ? local.existing_sm_guid : tolist(ibm_resource_instance.secrets_manager_instance[*].guid)[0]