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Deploying Vault securely in a confidential environment
IBM Developer

Tutorial

Deploying Vault securely in a confidential environment

Learn how to build and run a IBM Vault Self-Managed for Z and LinuxONE container in the IBM Hyper Protect Container Runtime with HSM-based auto-unsealing using PKCS#11

By Peter Szmrecsanyi, Robert Avill, Sandeep Batta

On this page

IBM Vault Self-Managed for Z and LinuxONE (previously known as Hashicorp Vault for s390x) helps manage secrets like encryption keys, API tokens, and database passwords in a secure, central place. But this also makes it a key target for attackers.

IBM Hyper Protect Services uses IBM Secure Execution (IBM SEL) to protect the full compute lifecycle. IBM SEL is a Trusted Execution Environments (TEE) for Linux on IBM Z and LinuxONE that protects data even when it’s being processed in memory.

Vault stores secrets on disk using a Master Key. This key can be secured further with a Key Encryption Key (KEK) from a Hardware Security Module (HSM), allowing features like auto-unseal and seal wrapping.

Vault’s security can be made stronger by protecting the server itself, so that sensitive data is not exposed through insider threats or memory dumps.

When Vault runs inside a Confidential Computing environment such as Hyper Protect Virtual Server (HPVS), it’s protected from memory inspection—even by someone with super-user access. This is possible because HPVS uses the Hyper Protect Container Runtime (HPCR) to secure workloads, as shown below:

Besides protecting memory, HPVS ensures the containerized workload is built on an immutable contract and can be encrypted to keep it confidential.

This tutorial is divided into three parts:

  1. Build a container image of Vault that accepts configuration through BASE64-encoded environment variables.

  2. Set up Vault to run inside HPVS.

  3. Use the Vault instance in HPVS with an external HSM (via GREP11) for the sealing and unsealing process.

Prerequisites

  • Basic knowledge of HPVS (setup steps like logging and contract definition are not covered here).

  • Basic knowledge of Vault.

  • Podman will be used instead of Docker (using Containerfile to build images and podman play YAML files instead of docker-compose.yaml).

  • Access to an s390x server or VSI on LinuxONE to build images (cross-building for s390x is out of scope for this tutorial).

  • Access to a container registry (this tutorial uses IBM Cloud Container Registry (ICR) - us.icr.io).

  • IBM Vault Self Managed on IBM Z and LinuxONE can be downloaded from Passport Advantage - PID 5900BP2. Update the Containerfile based on the method you choose.

  • Access to a GREP11 container with PKCS11 capability (similar to Hyper Protect Crypto Service on IBM Cloud with EP11 endpoints).

Part 1. Create a containerized Vault image that accepts BASE64-encoded environment variables

HPVS requires containerized workloads. In this step, we'll build a Vault image that reads configuration files created from BASE64 encoded environment variables. This makes it easy to reuse the image and HPVS contract without rebuilding the image every time configs change.

  1. Build and push the image:

    a. Log in to your s390x Linux VSI. Create and move into an empty directory. This will be your working folder.

    b. Copy the vault_script.sh into this directory. This script generates Vault config files from BASE64 env vars and starts Vault.

    c. Copy the Containerfile into the same directory. It creates a /vault/data directory for RAFT, downloads the latest Vault binary for s390x, and copies vault_script.sh into the image.

    d. Build the image using:

    podman build . --tag {registry}/{image-name}:{version}

    Replace {registry}, {image-name}, and {version} with your values. (See sample output).

    e. Push the image using:

    podman push {registry}/{image-name}:{version}

  2. Get the image URL with SHA-256 digest:

    You’ll need the image’s SHA-256 digest for HPVS. Check the registry for the image’s digest. It will look like this:

    {registry}/{image-name}@sha256:{sha256sum}

    Example for IBM Cloud Container Registry (ICR): ICR Sample

  3. Get the ENV variables:

    a. Copy the Vault config file vault-conf.hcl into your working directory. This file sets up Vault to enable the UI, listen on http://0.0.0.0:8200, use the license file /vault/license.hclic, and use raft for storage at /vault/data.

    Note: In a real deployment, especially in production, you should use TLS/HTTPS with signed certificates. This tutorial does not cover that setup.

    b. Convert it to Base64:

    base64 -iw0 vault-conf.hcl

    You’ll get output like this:

    dWkgICAgICAgICAgICA9IHRydWUKY2x1c3Rlcl9hZGRyICA9ICJodHRwOi8vMTI3LjAuMC4xOjgyMDEiCmFwaV9hZGRyICAgICAgPSAiaHR0cDovLzAuMC4wLjA6ODIwMCIKZGlzYWJsZV9tbG9jayA9IHRydWUKbGljZW5zZV9wYXRoICA9ICIvdmF1bHQvbGljZW5zZS5oY2xpYyIKCnN0b3JhZ2UgInJhZnQiIHsKICAgIHBhdGggPSAiL3ZhdWx0L2RhdGEiCiAgICB2YXVsdF9ub2RlX25hbWUgPSAidmF1bHRfMSIgICAgICAgICAgICAjc2V0dGluZyB1cCBhIHVuaXF1ZSBub2RlX2lkIGZvciBlYWNoIHZhdWx0IG5vZGUKfQoKbGlzdGVuZXIgInRjcCIgewogIGFkZHJlc3MgICAgICAgPSAiMC4wLjAuMDo4MjAwIgogIHRsc19kaXNhYmxlICAgPSAxCn0K

    This Base64 string will be used as the conf environment variable in your HPVS contract.

    c. Repeat the same process for your Vault license file. It will become the license environment variable.

  4. (Optional) Test the vault image outside of HPVS.

    a. Create or copy a vault.yaml file. This will be your podman play file, containing the Base64 values for your Vault config and license.

    b. Start the pod:

    podman play kube vault.yaml

    Check the sample output.

    c. Check if Vault is running:

    export VAULT_ADDR=http://127.0.0.1:8200/
   ./vault status

    Check the sample output.

    d. View logs with:

    podman logs {pod ID or container ID}

    Check the sample output.

Part 2. Configure Vault to run in HPVS

We will only define the workload section of the contract (assuming you already have a working environment section).

  1. Define the workload and start HPVS Guest:

    Create a workload.yaml file as follows:

    type: workload
 play:
   templates:
     - apiVersion: v1
       kind: Pod
       metadata:
         name: zcatvault
       spec:
         securityContext:
           privileged: false
         containers:
         - name: {Prefix}vault
           image: {registry}/{image-name}@sha256:{sha256sum-chars}
           securityContext:
             privileged: false
           volumeMounts:
           - name: vault-data
             mountPath: /vault/data
           env:
           - name: conf
             value: dWkgICAgICAgICAgICA9IHRydWUKY2x1c3Rlcl9hZGRyICA9ICJodHRwOi8vMTI3LjAuMC4xOjgyMDEiCmFwaV9hZGRyICAgICAgPSAiaHR0cDovLzAuMC4wLjA6ODIwMCIKZGlzYWJsZV9tbG9jayA9IHRydWUKbGljZW5zZV9wYXRoICA9ICIvdmF1bHQvbGljZW5zZS5oY2xpYyIKCnN0b3JhZ2UgInJhZnQiIHsKICAgIHBhdGggPSAiL3ZhdWx0L2RhdGEiCiAgICB2YXVsdF9ub2RlX25hbWUgPSAidmF1bHRfMSIgICAgICAgICAgICAjc2V0dGluZyB1cCBhIHVuaXF1ZSBub2RlX2lkIGZvciBlYWNoIHZhdWx0IG5vZGUKfQoKbGlzdGVuZXIgInRjcCIgewogIGFkZHJlc3MgICAgICAgPSAiMC4wLjAuMDo4MjAwIgogIHRsc19kaXNhYmxlICAgPSAxCn0K
           - name: license
             value: **omitted**
           ports:
           - containerPort: 8200
             hostPort: 8200
         volumes:
         - name: vault-data
           hostPath:
             path: /mnt/data
             type: DirectoryOrCreate
         restartPolicy: Never
 volumes:
   test:
     mount: "/mnt/data"
     seed: "testing"
 auths:
   {registry}:
     password: {Registry-Password}
     username: {Registry-User}

    Important updates

    Before starting, update the following in your contract:

    • {Prefix} — any prefix you want (for example, zcat)

    • {registry} — your container registry (for example, us.icr.io)

    • {image-name} — your image path and name (for example, zcat-hashicorp/vault-ent-nohsm)

    • {sha256sum-chars} — the SHA-256 checksum of your image (for example, f8c048a666a45ae1d124150673227c04e2e6c1f890ffaafe62724bd3f58a0367)

    • Registry login credentials under the auths: section

    • Base64-encoded value of vault-conf.hcl for the conf variable

    • Base64-encoded Vault license for the license variable

      Once updated, start your HPVS guest. See sample on-prem output. Then, Vault should launch successfully. See sample logging output.

  2. Test Vault in HPVS.

    a. Set the Vault address (replace with your HPVS IP if different) and check the Vault status:

    export VAULT_ADDR=http://192.168.122.22:8200/
 ./vault status

    You should see output similar to vault HPVS sample output.

    b. To unseal Vault, run the following command:

    ./vault operator unseal

    You should see output similar to vault HPVS unseal sample output, and logs similar to vault HPVS unseal log sample output.

Part 3. Configure Vault to use external HSM (via GREP11) for seal/unseal

To use GREP11 with Vault for sealing and unsealing, you’ll need a running GREP11 container with a database backend. To connect, gather the following:

  • Hostname, IP, or URL

  • Port (default: 9876)

  • CA certificate: grep11-ca.pem

  • Client certificate: grep11-client.pem (signed by the above CA)

  • Client key: grep11-client.key

Note: If you don’t have access to an on-prem GREP11 container, you can use IBM Cloud Hyper Protect Crypto Services (HPCS). In that case, the grep11client.yaml configuration file (used by the PKCS#11 library) will be different. Refer to the HPCS documentation for setup details.

  1. Build Vault image with HSM and PKCS#11 support.

    a. Log in to your s390x Linux VSI, create a new empty directory, and switch into it. This will be your working directory.

    b. Add the new vault_script.sh to this directory. This script will generate config files from base64-encoded environment variables (for Vault and the PKCS#11 library) and start Vault.

    c. Add the new Containerfile to the same directory. It is similar to the previous steps, but it also downloads the latest Vault HSM binary, downloads version 2.6.8 of the PKCS#11 library for s390x (update the link if a newer version is available), and copies the new vault_script.sh to the image (make sure the script is in the same directory).

    d. Build the image using:

    podman build . --tag {registry}/{image-name}:{version}

    Replace placeholders with your actual registry, image name, and version.

    e. Push the image to your registry:

    podman push {registry}/{image-name}:{version}

    Save the full image URL with its SHA256 digest, you'll need it later in your HPVS contract.

  2. Configuration Files

    a. The grep11client.yaml (for PKCS#11 Library) configures the PKCS#11 library to connect to your GREP11 container:

    iamcredentialtemplate: &defaultiamcredential
           enabled: false
           endpoint: "https://iam.cloud.ibm.com"

 sessionauthtemplate: &defaultsessionauth
   enabled: false
   tokenspaceIDPassword: "12345678"

 tokens:
   0:
     grep11connection:
       address: "{GREP11-Addr}"
       port: "9876"
       tls:
         enabled: true
         mutual: true
         cacert: "/etc/ep11client/certs/grep11-ca.pem"
         certfile: "/etc/ep11client/certs/grep11-client.pem"
         keyfile: "/etc/ep11client/certs/grep11-client.key"
     storage:
 #      filestore:
 #        enabled: true
 #        storagepath: <GREP11-KeyStore>
       remotestore:
         enabled: true
       # localpostgres:
       #   enabled: false
       #   connectionstring:
     users:
       0: # SO User
         name: "SO user"
       1: # User
         name: "Normal user"
         tokenspaceID: "21DCABAA-BEC7-442A-8089-5BD9582CB7EB"
       2: # Anonymous user
         name: "Anonymous"
         tokenspaceID: "B77CB96E-1D40-4530-8AA4-F96DDBEECD04"
 logging:
   loglevel: "trace"
   logpath: "/etc/ep11client/pkcs11.log"

    Notes:

    • Replace {GREP11-Addr} with your GREP11 IP or hostname.

    • If you're not using port 9876, update it.

    • The tokenspaceIDPassword must be an 8-digit number, and it must match the pin in Vault’s config (below).

    • Each deployment should use different tokenspaceID UUIDs.

    b. The vault-conf.hcl (Vault with HSM) is the Vault configuration using PKCS#11:

    ui            = true
 cluster_addr  = "http://127.0.0.1:8201/"
 api_addr      = "http://0.0.0.0:8200/"
 disable_mlock = true
 license_path  = "/vault/license.hclic"

 storage "raft" {
     path = "/vault/data"
     vault_node_name = "vault_1"            #setting up a unique node_id for each vault node
 }

 listener "tcp" {
   address       = "0.0.0.0:8200"
   tls_disable   = 1
 }

 seal "pkcs11" {
  key_label = "vault-hsm-key"
  lib = "/usr/local/lib/pkcs11-grep11-s390x.so.2.6.8"
  slot = "0"
  mechanism = 0x1085
  pin = "12345678"
  generate_key = "true"
  # token_label = "vaultpoc"
  hmac_key_label = "vault-hsm-hmac-key"
 }

    Note: Make sure the pin matches the tokenspaceIDPassword in grep11client.yaml.

  3. To define the Workload section of contract for HPVS, create the workload.yaml file with the following content:

    type: workload
 play:
   templates:
     - apiVersion: v1
       kind: Pod
       metadata:
         name: zcatvault
       spec:
         securityContext:
           privileged: false
         containers:
         - name: {Prefix}vault
           image: {registry}/{image-name}@sha256:{sha256sum-chars}
           securityContext:
             privileged: false
           volumeMounts:
           - name: vault-data
             mountPath: /vault/data
           env:
           - name: grep11
             value: {BASE64 of grep11client.yaml}
           - name: ca
             value: {BASE64 of grep11-ca.pem}
           - name: client
             value: {BASE64 of grep11-client.pem}
           - name: key
             value: {BASE64 of grep11-client.key}
           - name: conf
             value: {BASE64 of vault-conf.hcl}
           - name: license
             value: {BASE64 of license}
           ports:
           - containerPort: 8200
             hostPort: 8200
         volumes:
         - name: vault-data
           hostPath:
             path: /mnt/data
             type: DirectoryOrCreate
         restartPolicy: Never
 volumes:
   test:
     mount: "/mnt/data"
     seed: "testing"
 auths:
   {registry}:
     password: {Registry-Password}
     username: {Registry-User}

    Note: Make sure to update the following:

    • {Prefix} – any prefix you like to use

    • {registry} – your container registry

    • {image-name} – image name and path

    • {sha256sum-chars} – SHA256 digest of your image

    • Registry credentials in the auths: section

    • Base64-encoded values for:

      • grep11client.yaml → grep11

      • grep11-ca.pem → ca

      • grep11-client.pem → client

      • grep11-client.key → key

      • vault-conf.hcl → conf

      • Vault license → license

  4. Start your HPVS guest (sample on-prem output). The logs should show Vault started successfully (sample logging output).

    a. Check Vault status.

    ./vault status

    Expected output:

    Key                      Value
 ---                      -----
 Seal Type                pkcs11
 Recovery Seal Type       n/a
 Initialized              false
 Sealed                   true
 Total Recovery Shares    0
 Threshold                0
 Unseal Progress          0/0
 Unseal Nonce             n/a
 Version                  1.19.1+ent.hsm
 Build Date               2025-03-06T18:16:09Z
 Storage Type             raft
 Removed From Cluster     false
 HA Enabled               true

    You should see Seal Type as pkcs11.

    b. Initialize Vault.

    ./vault operator init

    This will generate multiple recovery keys and a root token:

    Recovery Key 1: qw3cFT+FZhmJWlO84wbLQuWAcsX/FRH96Xfiy0FYdunD
 Recovery Key 2: 2eMCBGXFo60rRoGOw1/Tny2CyIB7ktSLTbhlqvfxcxMG
 Recovery Key 3: s1Cn2LSFy6Ix8cw7yZyPtrTBssxz+TGlFWha3qQXlDDW
 Recovery Key 4: rbEfBMVq5DboCNni4ykbmB94yUUlgCPGKBuYluiHuMJ1
 Recovery Key 5: ngtmQaV6Kr82nmjJdYYPmnCdDbTmu7MgaNWECj88HAjA

 Initial Root Token: hvs.PniWzjqonUqK3q6wQkfUdTKB

 Success! Vault is initialized

    These values will differ each time. You can find more logging details.

    c. Login and test Vault operations.

    Login to Vault (as per the above sample):

    ./vault login token=hvs.PniWzjqonUqK3q6wQkfUdTKB
    Success! You are now authenticated. The token information displayed below
 is already stored in the token helper. You do NOT need to run "vault login"
 again. Future Vault requests will automatically use this token.

 Key                  Value
 ---                  -----
 token                hvs.PniWzjqonUqK3q6wQkfUdTKB
 token_accessor       gL7k67gSck0PbFEEsIgIANwy
 token_duration       ∞
 token_renewable      false
 token_policies       ["root"]
 identity_policies    []
 policies             ["root"]

    You should see a success message confirming you're authenticated.

    Now you can test basic operations such as vault operator seal, vault operator unseal, and vault status.

    Sample outputs for these commands are available at Vauly HSM seal-unseal output.

    d. Auto-unseal on restart.

    Vault with HSM should auto-unseal after a restart.

    To test, seal Vault if it’s not already sealed, restart the HPVS guest. Once it’s back up, run:

    ./vault status
    Key                      Value
 ---                      -----
 Seal Type                pkcs11
 Recovery Seal Type       shamir
 Initialized              true
 Sealed                   false
 Total Recovery Shares    5
 Threshold                3
 Version                  1.19.1+ent.hsm
 Build Date               2025-03-06T18:16:09Z
 Storage Type             raft
 Cluster Name             vault-cluster-c8c01c44
 Cluster ID               bcdf2373-95e7-3170-10d6-c45a5997b082
 Removed From Cluster     false
 HA Enabled               true
 HA Cluster               https://127.0.0.1:8201/
 HA Mode                  active
 Active Since             2025-03-20T13:33:07.34429041Z
 Raft Committed Index     179579
 Raft Applied Index       179579
 Last WAL                 68842

    You should see Sealed is false and Seal Type is pkcs11, confirming it auto-unsealed.

    Full logs of the restart and status are available at Vault HSM restart unsealoutput.

Conclusion

You have completed this 3-part tutorial. You learned how to:

  • Build a containerized IBM Vault Self-Managed for Z and LinuxONE image to run on HPVS.

  • Connect Vault to an HSM using PKCS#11.

  • Use environment variables to pass config data securely into your workload.

You're now set up to run Vault securely in a confidential environment.