diff --git a/parts/k8s/kubernetesmasterresources.t b/parts/k8s/kubernetesmasterresources.t
index db7dfaf757..9c8aedb63c 100644
--- a/parts/k8s/kubernetesmasterresources.t
+++ b/parts/k8s/kubernetesmasterresources.t
@@ -622,6 +622,15 @@
     },
 {{end}}
 {{if EnableEncryptionWithExternalKms}}
+     {
+       "type": "Microsoft.Storage/storageAccounts",
+       "name": "[variables('clusterKeyVaultName')]",
+       "apiVersion": "[variables('apiVersionStorage')]",
+       "location": "[variables('location')]",
+       "properties": {
+         "accountType": "Standard_LRS"
+       }
+     },
      {
        "type": "Microsoft.KeyVault/vaults",
        "name": "[variables('clusterKeyVaultName')]",
diff --git a/parts/k8s/kubernetesmastervars.t b/parts/k8s/kubernetesmastervars.t
index e24b60105f..0bc6507903 100644
--- a/parts/k8s/kubernetesmastervars.t
+++ b/parts/k8s/kubernetesmastervars.t
@@ -486,6 +486,9 @@
 {{end}}
 {{if EnableEncryptionWithExternalKms}}
      ,"apiVersionKeyVault": "2016-10-01",
-     "clusterKeyVaultName": "[take(concat(resourceGroup().location, '-' , uniqueString(concat(variables('masterFqdnPrefix'),'-',resourceGroup().location))), 20)]",
+     {{if not .HasStorageAccountDisks}}
+     "apiVersionStorage": "2015-06-15",
+     {{end}}
+     "clusterKeyVaultName": "[take(concat(variables('masterFqdnPrefix'), tolower(uniqueString(variables('masterFqdnPrefix')))), 20)]",
      "clusterKeyVaultSku" : "[parameters('clusterKeyVaultSku')]"
 {{end}}