Turning complexity into a competitive advantage with AI automation
In this installment of our Partner Spotlight series, we’re continuing to showcase the innovators driving app and agent development forward on the Microsoft Marketplace. Each feature highlights the distinct journeys of partners who are pioneering AI-powered solutions, building across the Microsoft ecosystem, and delivering transactable applications that are shaping the future of the marketplace. In this article, I sat down with Alois Reitbauer from Dynatrace to learn more about their story and partner journey. About Alios: Alois Reitbauer is Chief Technology Strategist at Dynatrace where he is responsible for the Edge Data Platform, open source, and research in cloud-native technologies, security, and large-scale data management. He was a founding member and contributor to several standards in the W3C (World Wide Web Consortium) regarding web performance and distributed tracing and CNCF TAG App Delivery. Alois co-founded OpenFeature, one of the fastest growing projects in the cloud-native space. He curates the open-source canvas, a modelling and strategic planning tool for open source projects. Alois advises startups and scaleups on open source and product commercialization strategies and is an early-stage investor with a focus on developer experience tooling. ______________________________________________________________________________________________________________________________________________________________ [JR]: Tell us about your organization. What inspired the founding? What products/services do you offer? [AR]: At Dynatrace, we believe every business is a digital business, made up of data, analytics, infrastructure, and ops. We aim to help businesses harness all that information in context. Dynatrace provides observability and security with AI and automation, focusing on auto-prevention, auto-remediation, and auto-optimization. Our unified observability and security platform can analyze all your data in context, leveraging AI-powered analytics for predictive and preventive operations. Davis AI, which is at the heart of our platform, combines causal, generative, and predictive AI technologies. Another foundational component is Grail, our causal data lakehouse featuring massively parallel processing. Together, with our other offerings — including AutomationEngine, AppEngine, OneAgent, PurePath, and Smartscape, among others — we empower customers to analyze, automate, and innovate faster with full-stack, AI-driven observability. Our platform enables customers to address their most pressing challenges right out of the box. They can also automate any process by leveraging AI, dynamic mapping, and Grail to contextualize all their data for instant analytics and automation. [JR]: Can you tell us a bit about the application(s) you have available on the marketplace? How does it work? [AR]: Users can deploy our Azure-native integration from the Azure Portal with one click. It behaves like a native Azure service, with seamless authentication, billing, and visibility. Our AI-powered observability platform is embedded in Azure. We offer our SaaS-based service via the Microsoft Marketplace. Customers can leverage everything our platform offers to monitor, protect, and optimize their entire application stack. [JR]: What Microsoft cloud products did you use in your app or agent development? What value is this enabling with your customers? [AR]: We use many different Azure Blob Storage, Azure Kubernetes Service (AKS), Azure Cache for Redis®, and Azure database services, as well as underlaying services for networking and DNS running in our components on Azure. We integrated these native Azure services with the Dynatrace Grail data lakehouse, our application framework, and our predictive, causal, and generative AI. We also embedded our AI-powered observability directly into the Azure ecosystem. This helps businesses gain a deeper understanding into their cloud environments, opening the door for huge growth potential and the ability to scale their business with intelligent, data-driven insights. With Dynatrace observability on Azure, we help customers understand their data in context, find answers in real time, automate their processes, and accelerate AI adoption. [JR]: What inspired your team to begin integrating AI into your app or agent development workflows? [AR]: We started working on using AI over a decade ago to make people’s lives easier and let them focus on what really matters. Our first use case for AI was to automatically detect the root cause of an application issue and surface it to the user. Now, our Davis AI engine is at the core of our platform. It features the unique combination of causal, predictive, and generative AI to help businesses identify and address issues before they affect users, allowing them to spend more time innovating and less time firefighting. Our platform also helps organizations monitor, optimize, and secure generative AI applications, LLMs, and agentic workflows, which boosts performance, explainability, and compliance. [JR]: How do you envision AI transforming your product offerings over the next 12–18 months? [AR]: AI is at the core of our platform. Our AI engine, Davis, continuously looks for issues and provides precise root cause. This helps customers identify and resolve issues potentially in minutes — before they affect users and become expensive. In the future, we see ourselves moving from finding and identifying issues to semi-automatically resolving them with the help of services like the Azure SRE agent. We are experts at solving application-level problems with modern AI workloads. But, with the help of cloud service providers like Microsoft, we want to deeply integrate and leverage their expertise to take Dynatrace to the next level. [JR]: Can you walk us through your journey from concept to deployment for an AI agent? [AR]: Everything starts with the use case. When we think about the customer’s needs, we usually define the level of autonomy from assisting, to advising and eventually delegating the goal to an AI agent. So, everything starts there. Then, we analyze what a human will need to perform the task and which tools are required. We use this knowledge to help with fine tuning our specific data queries. Tools will become software services exposed via Microsoft Cloud Framework (MCF). [JR]: How do you ensure your AI agents are compliant, secure, and scalable for enterprise customers? [AR]: As we were developing our first AI agents, we built dedicated observability for it. This led to a dedicated product solution for AI observability, helping us understand and debug behavior, insights into cost, performance and quality as well as evaluating guardrails to understand where agents do not work properly. [JR]: How are you leveraging the Microsoft Marketplace to distribute your AI-powered solutions? [AR]: Our AI-powered observability platform is natively available in Microsoft Azure as an Azure Native Service. Customers gain full-stack visibility, automation, and root-cause detection across Azure-native and hybrid environments. This helps to drive faster innovation, better customer experiences, and more efficient use of Azure. With our observability platform natively integrated into Azure, we help to drive modernization, FinOps, and DevOps acceleration. This helps our customers get contextual answers and automation from day one. [JR]: What measurable outcomes have you seen from deploying AI agents or Copilot-enhanced solutions? [AR]: We see the highest impact on analytics and research-intensive tasks. Work that would otherwise take hours or days can now be done in minutes or less. For example, one of our customers — the technology arm of one of Thailand’s leading commercial banks — used Dynatrace’s full-stack observability and Davis AI to get a single source of truth that helped them identify and resolve the root cause of problems in real time. This cut the time it takes its teams to solve problems by 10x. [JR]: What are your top tips for designing effective AI agents? [AR]: The best advice is to solve a real problem. Identify the problem and what makes it hard to handle today, and then work your way toward an ideal solution. Very often, the best way to identify the issue is if you think, “If I only had someone who would do xyz,” that provides a good hint of what you want an agent to do. I also recommend prototyping early on against production data. [JR]: What common pitfalls should other partners avoid when building with AI? [AR]: You should not throw AI on every problem you see. Often, there are simpler solutions with equal or even better results for certain issues. Focus on where AI can really generate value. Many people overestimate the value of their AI projects without having a clear strategy to measure its value. People also underestimate the cost of their AI applications. AI applications are usually more costly than “regular” applications, Therefore, cost tracking is critical. Additionally, sometimes agents behave in an undesired way and require you to debug in real time and in production. That’s why AI observability is key. __________________________________________________________________________________________________________________________________________________________________ Resources: Join ISV Success - Build and publish applications and agents faster with powerful AI developer tools, consultations, and technical guidance—then grow your sales through Microsoft Marketplace Join the marketplace community - Access resources for every stage of the journey on the Microsoft Marketplace, provide feedback, and engage with other partners and Microsoft subject-matter experts focused on your success. Microsoft Marketplace - Your trusted source for cloud solutions, AI apps, and agents Paths for partnership - Learn more about the ways you can partner with us—from building and selling solutions to differentiating your business with a Solutions Partner designation.Build enterprise-ready AI agents with confidence: Microsoft AI agent envisioning series
In today’s fast-paced software landscape, keeping up with new technologies and frameworks to build secure, scalable, and enterprise-ready AI apps and agents is more critical—and more complex—than ever. The Microsoft AI Agent Envisioning Series is a four-part webinar experience designed to equip software development companies with the frameworks, tools, and strategies needed to build, publish and monetize AI agents using Azure AI Foundry and the Microsoft Marketplace. Whether you're launching new solutions or evolving existing ones, this series will help you accelerate development, ensure compliance, and scale with confidence. Why Attend? Software companies are racing to deliver intelligent, autonomous solutions that scale. But building commercially viable AI agents that are secure, compliant, and enterprise-ready is no small feat. That’s why we created the Microsoft AI Agent Envisioning Series—a webinar series designed to help you build, publish, and monetize AI agents using Azure AI Foundry, with your preferred coding practices and standards. What You’ll Gain Each session delivers step-by-step guidance, technical best practices, and business strategy to help you: Architect AI agents for real-world business impact Package and publish your solution on the Microsoft Marketplace Build trust with enterprise customers through security and compliance Monetize with confidence using proven go-to-market frameworks The Sessions *It is not required to take the sessions in order. Session 1: Introduction to AI Agent Opportunities and Azure AI Foundry Explore the evolution from general LLMs to specialized agents. Learn how Azure AI Foundry simplifies development and unlocks new monetization paths. Session 2: Architecting AI Solutions for Marketplace Monetization Use the Marketplace Lean Canvas to define your agent’s value. Learn how to optimize cost, select models, and align pricing with customer outcomes. Session 3: Publishing & Releasing Your AI Agent Solution Get your solution marketplace-ready. Learn how to configure SaaS and container offers, meet compliance requirements, and find your buyers. Session 4: Winning Customer Confidence with Trustworthy AI and Production-Ready Architecture Dive into the Azure Well-Architected Framework for AI. Learn how to implement observability, tracing, and enterprise-grade security. Built for Software Development Companies Whether you're building net-new agents or transforming existing apps, this series will help you: Accelerate development with Azure AI Foundry templates and SDKs Ensure compliance with SOC 2, GDPR, HIPAA, and ISO 27001 Publish confidently with Partner Center and Marketplace certification Scale globally with Azure’s infrastructure and co-sell programs Ready to Build AI Agents That Scale? Join us and get the frameworks, tools, and strategies to build AI agents that enterprises trust, IT departments approve, and customers love. Register now for the AI Envisioning Day to access all the sessions and start your journey from idea to customer impact.Ultimate Partner LIVE Fall 2025: AI ecosystem masterclass & partner success summit
Mark your calendars! Ultimate Partner LIVE Fall is coming to the Washington, D.C. area, October 27-29, and this event presents a unique, high-impact opportunity for partners looking to stay ahead of the tectonic shifts, align priorities, and accelerate performance in 2026. We are taking the ecosystem to Carahsoft's facilities for a masterclass in how to become the Ultimate Partner. With immersive workshops, direct access to decision-makers, and a curated executive audience; you’ll accelerate your strategy to new levels. Here is what you can expect: Decode the Tectonic Shifts: Learn how AI, Marketplaces, Co-Selling, and Ecosystems are reshaping partner success — and what you must do now. Hear directly from Microsoft leaders, Erwin Visser, Matt Berg and Wole Moses who will take you through the exciting $450B+ durable cloud budget flowing through marketplaces, FY26 AI priorities, and where you should align. Access Proven Frameworks & Playbooks: Attendees will also participate in hands-on workshops facilitated by top industry experts including: The Odigo Group, Carve Partners, ISSI, AvePoint, Bridge Partners, Digitalzone, WorkSpan, Revstacker and more! Workshops will focus on co-selling, AI marketing strategy and Building Service Models to grow revenue. Be in the Room with Leaders Network with 200+ executives, thought leaders, ISVs, GSIs, MSPs, distributors, and consultants in an intimate, high impact setting. 40+ amazing speakers will share their secrets to successful partnering! ⭐SPECIAL OFFER As a valued Microsoft partner, Ultimate Partner is offering a 15% discount on general passes to experience UP LIVE⭐ 👉 [Register Now for UP LIVE: Reston] USE CODE: ULTIMATEVIP15 at checkout Hope to see you there, Vince Menzione CEO, Ultimate Partner ________________________________________________________________________________________________________________________________________________________________ Ultimate Partner is the go-to destination for technology leaders and partners aiming to thrive in the Hyperscaler ecosystem. Ultimate Partner delivers high-impact content, expert insights, and exclusive events—both live and digital. Our mission is to “Empower technology leaders to achieve their greatest results through successful partnering”. Learn moreBuild smarter, publish faster: Here’s what’s new in App Advisor
App Advisor just got a major upgrade - and it’s changing the game for software development companies building apps and agents for the Microsoft Marketplace. Since its MVP launch in January 2024, App Advisor has helped thousands of partners like you streamline their journey. 💬 What partners are saying App Advisor isn’t just a tool - it’s a game-changer. Here’s what partners have shared about their experience: “I appreciate that App Advisor curates the content for the partner since the amount of data available is just so vast. It does a great job of curating for them based on their goals.” Frank Valdivieso, President & CEO, Gryphon Consulting ⚡What’s new? Smarter focus, faster execution, and scalable growth Now, with six new features launched in the US (and global availability coming soon), App Advisor is making it easier than ever to stay focused, move faster, and scale smarter with apps and agents. Here’s what’s new: 🛠️ In-app marketplace offer creation Start your marketplace journey directly within App Advisor - no context switching required. You can now initiate offer creation for popular offer types without leaving the platform. Not signed up to publish - no problem! App Advisor can get you signed up and on your way to creating your offer. 🚀 Tailored recommendations by marketplace offer type Confidently align your app with the right marketplace offer and pricing model using our interactive wizard. Get personalized recommendations based on your app profile and program membership - and fast-track publishing to launch sooner. 📁 Multi-project save with Partner Center linking Advance multiple apps and agents from a single, centralized experience. Save guidance across projects and link each to its Partner Center offer for seamless continuity. 🎯 Membership-based guidance Receive personalized guidance based on your ISV Success or Marketplace Rewards membership. App Advisor adapts its recommendations to help you make faster, smarter decisions. ✅ ISV Success sign-up integration Sign up for ISV Success and resume your workflow without disruption. Unlock benefits like cloud credits, technical consults, and go-to-market resources - all without breaking your build flow. 🎥 Embedded video playback Explore how to build, publish, and grow your apps and agents with step-by-step video guidance. Watch demos and guidance videos directly within App Advisor. Stay in flow with seamless, distraction-free learning, all while keeping the AI-powered assistant visible and ready to help. Ready to accelerate your marketplace success? Dive into App Advisor today to build, publish, and sell transactable offers with clarity, speed, and confidence. Make sure you check out the new Microsoft Marketplace - the single destination to find, try, and buy AI apps, tools, and agents. Read the blog to learn more. Ready to level up with App Advisor? Watch this quick video and unlock what’s next!Microsoft Marketplace Rewards FY26: Partner incentives, Azure sponsorships, and growth strategies
As Microsoft continues to expand its commercial marketplace ecosystem, the Microsoft Marketplace Rewards program introduces powerful new FY26 incentives for software development companies and channel sellers. From Azure sponsorships to co-sell enablement and performance-based marketing benefits, this program is designed to accelerate partner growth and drive cloud solution adoption. In this article, we break down the key updates, eligibility criteria, and strategic actions partners can take to maximize their presence and profitability in the Microsoft commercial marketplace. Marketplace Rewards Overview The Marketplace Rewards program is available to all participants in the Microsoft AI Cloud Partner Program who publish and sell software in the Microsoft Marketplace and now includes channel partners who are enrolled in multiparty private offers (MPO). Whether you are publishing your own solution or reselling third-party offers, the program is structured to recognize and support your contribution to Microsoft’s ecosystem. Rewards are based on Marketplace Billed Sales (MBS) over the trailing 12 months. As performance increases, partners gain access to benefits that enhance visibility, marketing reach, and seller engagement. To get started, software companies should ensure their offers are transactable and channel partners should enroll to sell multiparty private offers. Monitoring performance through the Revenue Dashboard in Partner Center is essential to track progress and unlock benefits. Performance-Based Benefits Marketplace Rewards are tiered based on billed sales, with each level unlocking specific benefits designed to amplify brand visibility and accelerate demand generation. For example, reaching $100K in billed sales qualifies a partner for press release support featuring a Microsoft quote and $10,000 in Azure Sponsorship which can be used to sell future marketplace offers. At $500K, partners can participate in a Marketplace Rewards testimonial. A $1M threshold unlocks the opportunity to publish a partner or customer success story. At $8M, partners gain access to Microsoft seller webinars and Azure sponsorships of $200,000. These benefits are designed to reward high-performing partners and provide strategic marketing and sales support aligned with Microsoft’s go-to-market initiatives. Azure Sponsorships Azure sponsorships offer free Azure usage to customers, helping partners and resellers accelerate deal closure and adoption. These sponsorships are available for EA and PAYG subscriptions only and are not applicable to CSP or MCA agreements. The duration of the sponsorship depends on deal size. Deals under $100K qualify for a 90-day sponsorship, while deals of $100K or more are eligible for 180 days. For deals under three years, the sponsorship amount must not exceed 3% of the Total Contract Value (TCV). To take advantage of this benefit, submit requests using the Azure Sponsorship Submission Form. Co-Sell Enablement Partners and channel sellers who meet co-sell criteria gain access to Microsoft’s global sales force. This includes opportunities to participate in internal webinars and receive direct seller engagement. To qualify, offers must be transactable and correctly tagged in Partner Center. Documentation should clearly articulate the value proposition and include compelling customer success stories. By aligning with Microsoft’s co-sell strategy, partners can significantly expand their reach and accelerate pipeline development. Getting Started To activate Marketplace Rewards and Azure sponsorships, software companies must publish a transactable offer in Microsoft marketplace and channel partners must first enroll in Multiparty Private Offers. Monitoring performance in Partner Center is critical to understanding eligibility and tracking progress. For onboarding support, channel partners are encouraged to contact channelready@microsoft.com. Microsoft’s FY26 Marketplace Rewards program presents a strategic opportunity for software development companies and channel sellers to grow their business, increase visibility, and deepen engagement with Microsoft. By aligning go-to-market strategies with marketplace performance goals, partners can unlock resources that accelerate success. To explore the full program details and hear directly from Microsoft experts, watch the Marketplace Rewards for FY26 – Office Hours Recording
Maximizing success in the Microsoft Marketplace: FY26 strategies for software development companies
Staying competitive in today’s software marketplace requires more than just innovative products, it demands strategic alignment with the platforms and programs that drive visibility, sales, and partner support. Microsoft’s Partner Office Hours, held on August 28, 2025, provided software development companies with a comprehensive overview of the latest updates to the Microsoft Marketplace ecosystem. The session highlighted new investment opportunities, streamlined partner benefits, and actionable guidance for maximizing success through certification, incentives, and collaborative programs. For companies building and selling applications on Microsoft’s platform, these insights are essential for navigating FY26 and beyond. Certified Software Designation: Unlocking the top level of investments from Microsoft Marketplace benefits Microsoft is streamlining access to the top level of investments and benefits partners receive through the Certified Software Designation program. This designation is now the primary pathway for software development companies to access Microsoft incentives, go-to-market support, and differentiation to Microsoft customers and Microsoft sellers. Partners can earn certification in solution areas such as Azure, Business Applications, Modern Work, and Security, as well as in industry AI categories like healthcare, manufacturing, and more. Solutions may be certified in multiple areas, increasing their visibility to customers and Microsoft sellers. Achieving Certified Software Designation enhances discoverability in the Azure Marketplace and unlocks additional benefits, including higher funding tiers, marketing assets, and seller engagement tools. The certification process requires partners to publish a transactable solution, demonstrate customer success, and meet technical requirements for interoperability with Microsoft Cloud. FY26 Partner Incentives: Expanded support for software development companies For fiscal year 2026, Microsoft has significantly increased its investments in partner incentives for the Microsoft Marketplace. The maximum payout for migration and modernization projects has risen from $50,000 to $175,000. New pre-sales incentives are available for architecture and migration planning, and system integrators (SIs) are now eligible for rewards when assisting with customer modernization. Starting January 2026, only certified software partners will be eligible for these incentives, making Certified Software Designation essential for accessing the full range of Microsoft Marketplace support. Marketplace Rewards: Accelerating sales and engagement Marketplace Rewards remain a cornerstone of Microsoft’s partner investment strategy. Any partner with a transactable solution in the Microsoft Marketplace can participate, and those who do typically see seven times more sales than non-participants. High value features include Customer Propensity Scoring, which uses machine learning to help partners prioritize leads most likely to close, and newly expanded Azure Sponsorships. Certified partners can now access up to $1 million in annual Azure sponsorships to help close deals and offset customer costs, with some tiers exclusive to certified partners. Co-Sell benefits: Enhancing collaboration with Microsoft sellers Certified partners can engage in Partner Reported Azure Consumed Revenue (PRACR), incentivizing Microsoft sellers to co-sell partner solutions. This mechanism helps software development companies become involved in more deals and supports sellers in meeting their quotas. From January 2026, only certified partners will be able to report PRACR, making certification essential for maximizing co-sell opportunities in the Microsoft Marketplace. Go-to-market assets: Customizable marketing support for partners Achieving certification unlocks a suite of marketing assets, including a custom video for campaigns, solution battle cards for seller enablement, solution briefs, play cards, badging, logo builder, and certified letters for RFPs. These assets are fully customizable, allowing software development companies to maintain their unique branding while leveraging Microsoft’s marketing resources. Microsoft’s FY26 updates to the Marketplace ecosystem present significant opportunities for software development companies to accelerate growth, improve visibility, and access expanded support. By pursuing Certified Software Designation, engaging with Marketplace Rewards, and leveraging new incentive programs and marketing assets, partners can position themselves for greater success in a rapidly evolving digital landscape. Staying informed and actively participating in community events like Partner Office Hours will ensure that software companies remain at the forefront of innovation and partnership within the Microsoft ecosystem. To learn more and access the full session recording visit: Certified Software Designations: FY26 Benefits Updates | Microsoft Community HubAI data governance made easy: How Microsoft Purview tackles GenAI risks and builds trust
As AI transforms software development, the opportunities are vast - but so are the risks. AI promises faster innovation, smarter experiences, and new business models. But behind the excitement, leaders across industries are grappling with a core question: “How do I unlock the benefits of AI while protecting my data, complying with regulations, and maintaining customer trust?” In our 7th episode of the Security for Software Development Companies webinar series - Safeguard Data Security and Privacy in AI-Driven Applications - we addressed this challenge directly. Featuring Microsoft experts Kyle Marsh and Vic Perdana, this session revealed how Microsoft Purview delivers practical, built-in security for AI applications, helping software development companies and enterprise developers meet security expectations from day one. AI security is now a top concern for business leaders The shift toward AI-driven applications has heightened concern among CISOs and decision makers. Recent research from the ISMG First Annual Generative AI Study revealed that: Microsoft Purview for AI: Visibility, control, and compliance by design To address these risks without slowing innovation, Microsoft has extended Purview, our enterprise data governance platform, into the world of AI. From Microsoft Copilot to custom GPT-based assistants, Purview now governs AI interactions, offering: - Data Loss Prevention (DLP) on prompts and responses - Real-time blocking of sensitive content - Audit trails and reporting for AI activity - Seamless integration via Microsoft Graph APIs This means software developers can plug into enterprise-grade governance - with minimal code and no need to reinvent compliance infrastructure. What it looks like: Data Security Posture Management for AI in Microsoft Purview Purview’s Data Security Posture Management (DSPM) for AI offers centralized visibility into all AI interactions across Microsoft Copilot, Azure OpenAI, and even third-party models like Google Gemini or ChatGPT. A developer’s guide: How to integrate AI security using Microsoft Graph APIs Microsoft Purview offers a lightweight, developer-friendly integration path. As Kyle Marsh demonstrated during the webinar, just two core APIs are required: protectionScopes/compute This API lets you determine when and why to submit prompts/responses for review. It returns the execution mode: - evaluateInline: Wait for Purview to approve before sending to the AI model or to the user from the AI model (future functionality) - evaluateOffline: Send in parallel for audit only processContent Use this API to send prompts/responses along with metadata. If a DLP rule is triggered (e.g., presence of a credit card number), the app receives a block instruction before continuing. For less intrusive monitoring, you can use contentActivity, which logs metadata only - ideal for auditing AI usage patterns without exposing user content. Example in action: Blocking confidential data in Microsoft Copilot The power of Purview’s inline protection is demonstrated in Microsoft Copilot. Below, we see how a user’s query surfaced confidential documents - but was blocked from sharing due to policy enforcement. ect Obsidian') - enforced by Microsoft Purview’s DLP policy engine. Built-in support for Microsoft tooling Developers using Copilot Studio, Azure AI Studio, or Azure AI Foundry benefit from built-in or automatic integration: - Copilot Studio: Purview integration is fully automatic - developers don’t need to write a single line of security code. - Azure AI Foundry: Supports evaluateOffline by default; advanced controls can be added via APIs. Custom apps - like a chatbot built with OpenAI APIs - can integrate directly using Microsoft Graph, ensuring enterprise-readiness with minimal effort. Powerful enterprise controls with zero developer overhead Enterprise customers can define and manage AI security policies through the familiar Microsoft Purview interface: - Create custom sensitive info types - Apply role-based access and location targeting - Build blocking or allow-list policies - Conduct audits, investigations, and eDiscovery As a software development company, you don’t need to manage any of these rules. Your app simply calls the API and responds to the decision returned - block, allow, or log. Resources to help you get started Microsoft provides comprehensive tools and docs to help developers integrate AI governance: - Purview Developer Samples: samples - Microsoft Graph APIs for Purview: docs - Web App Security Assessment: aka.ms/wafsecurity - Cloud Adoption Framework: aka.ms/caf - Zero Trust for AI: aka.ms/zero-trust - SaaS Workload Design Principles: docs Final takeaway: Secure AI is smart AI “Securing AI isn’t optional - it’s a competitive advantage. If you want your solution in the hands of enterprises, you must build trust from day one.” With Microsoft Purview and Microsoft Graph, software developers can build AI experiences that are not only intelligent but trustworthy, compliant, and ready for scale. 🎥 Watch the full episode of “Safeguard Data Security and Privacy in AI-Driven Applications” at aka.ms/asiasdcsecurity/recording
M365 Developers Update | June 2025
Spotlight Bring the AI capabilities of Copilot into your apps and agents with Microsoft 365 Copilot APIs Learn More Dive deeper into the latest wave of updates to Copilot Studio, now with powerful new tools for multi-agent systems, enterprise data access, custom AI tuning, and more. See all updates Explore the Microsoft 365 Agents Toolkit, an evolution of Microsoft Teams Toolkit, designed to help you build agents and apps for Microsoft 365 Copilot and beyond. Read the docs Introducing the Agent Store: A centralized, curated marketplace within Microsoft 365 Copilot to browse, install, and try agents tailored to your needs. Start browsing Learn Use the Microsoft 365 Agents SDK to build agents for Microsoft 365 Copilot, Microsoft Teams, and more using models provided by Azure AI Foundry. Watch how Try the latest version of Dev Proxy, now with the capability to help you understand language models’ usage and costs in your applications. Get the latest Learn more about Athena, an AI-powered collaborative agent, how it was built, and how to create your own version of Athena right within Microsoft Teams. Read now Keep up to date On Demand: Catch up on all of our breakout sessions from Build Get started YouTube: Tune in for tutorials on the latest dev tools Subscribe now LinkedIn: Get the latest news, product announcements, demos, and more Follow us Community Calls: Learn from our experts on a variety of Microsoft 365 platform topics Join a callNavigating AI security: Identifying risks and implementing mitigations
As artificial intelligence becomes central to software innovation, it also introduces unique security challenges—especially in applications powered by large language models (LLMs). In this edition of the Software Development Company Security Series, we explore the evolving risks facing AI-powered products and share actionable strategies to secure AI solutions throughout the development lifecycle. *Data based on 2024–2025 global reports from Cyberhaven, Swimlane, FS-ISAC, Capgemini, Palo Alto Networks, and Pillar Security analyzing AI security incidents across sectors. Understanding the Evolving AI Threat Landscape AI systems, particularly LLMs, differ from traditional software in one fundamental way: they’re generative, probabilistic, and nondeterministic. This unpredictability opens the door to novel security risks, including: Sensitive Data Exposure: Leaked personal or proprietary data via model outputs. Prompt Injection: Manipulated inputs crafted to subvert AI behavior. Supply Chain Attacks: Risks from compromised training data, open-source models, or third-party libraries. Model Poisoning: Insertion of malicious content during training to bias outcomes. Jailbreaks & Misuse: Circumventing safeguards to produce unsafe or unethical content. Compliance & Trust Risks: Legal, regulatory, and reputational consequences from unvalidated AI outputs. These risks underscore the need for a security-first approach to designing, deploying, and operating AI systems. Key Risks: The OWASP Top 10 for LLMs The OWASP Top 10 LLM Risks offer a framework for understanding threats specific to generative AI. Key entries include: Prompt Injection Sensitive Data Disclosure Model and Data Poisoning Excessive Model Permissions Hallucination & Misinformation System Prompt Leakage Vector Embedding Exploits Uncontrolled Resource Consumption Each of these risks presents opportunities for attackers across the AI lifecycle—from model training and prompt design to output handling and API access. Inherent Risks of LLM-Based Applications Three core attributes contribute to LLM vulnerabilities: Probabilistic Outputs: Same prompt, different results. Non-Determinism: Inconsistent behavior, compounded over time. Linguistic Flexibility: Prone to manipulation and hallucination. Common attack scenarios include: Hallucination: Fabricated content presented as fact—dangerous in domains like healthcare or legal. Indirect Prompt Injection: Malicious prompts hidden in user content (emails, docs). Jailbreaks: Bypassing guardrails using clever or multi-step prompting. Mitigations include retrieval-augmented generation (RAG), output validation, prompt filtering, and user activity monitoring. Microsoft’s Approach to Securing AI Applications Securing AI requires embedding Zero Trust principles and responsible AI at every stage. Microsoft supports this through: Zero Trust Architecture Verify explicitly based on identity and context Use least privilege access controls Assume breach with proactive monitoring and segmentation Shared Responsibility Model Customer-managed models: You manage model security and data. Microsoft-managed platforms: Microsoft handles infrastructure; you configure securely. End-to-End Security Controls Protect infrastructure, APIs, orchestration flows, and user prompts. Enforce responsible AI principles: fairness, privacy, accountability, and transparency. Tools & Ecosystem Microsoft Defender for Cloud: Monitors AI posture and detects threats like credential misuse or jailbreak attempts. Azure AI Foundry: Scans models for embedded risks and unsafe code. Prompt Shield: Filters harmful inputs in real-time. Red Team Tools (e.g., PyRIT): Simulate attacks to harden defenses pre-deployment. Action Steps for Software Companies Securing AI Products Here’s a focused checklist for AI builders and software development companies: Embed Security Early Apply Zero Trust by default Use identity and access management Encrypt data in transit and at rest Leverage Microsoft Security Ecosystem Enable Defender for Cloud for AI workload protection Scan models via Azure AI Foundry Deploy Prompt Shield to defend against jailbreaks and injection attacks Secure the Supply Chain Maintain a Software Bill of Materials (SBOM) Regularly audit and patch dependencies Sanitize external data inputs Mitigate LLM-Specific Risks Validate outputs and restrict unsafe actions Use RAG to reduce hallucination Monitor prompt usage and filter malicious patterns Build for Multi-Tenancy and Compliance Use Well-Architected Framework for OpenAI Isolate tenant data Ensure alignment with data residency and privacy laws Continuously Improve Conduct regular red teaming Monitor AI systems in production Establish incident response playbooks Foster a Security-First Culture Share responsibility across engineering, product, and security teams Train users on AI risks and responsible usage Update policies to adapt to evolving threats Conclusion: Secure AI Is Responsible AI AI’s potential can only be realized when it is both innovative and secure. By embedding security and responsibility across the AI lifecycle, software companies can deliver solutions that are not only powerful—but trusted, compliant, and resilient. Explore More OWASP Top 10 for Large Language Model Applications | OWASP Foundation Overview - AI threat protection - Microsoft Defender for Cloud | Microsoft Learn Prompt Shields in Azure AI Content Safety - Azure AI services | Microsoft Learn AI Red Teaming Agent - Azure AI Foundry | Microsoft Learn AI Trust and AI Risk: Tackling Trust, Risk and Security in AI Models What is Azure AI Content Safety? - Azure AI services | Microsoft Learn Overview of Responsible AI practices for Azure OpenAI models - Azure AI services | Microsoft Learn Architecture Best Practices for Azure OpenAI Service - Microsoft Azure Well-Architected Framework | Microsoft Learn Azure OpenAI Landing Zone reference architecture AI Workload Documentation - Microsoft Azure Well-Architected Framework | Microsoft Learn Announcing new tools in Azure AI to help you build more secure and trustworthy generative AI applications | Microsoft Azure Blog HiddenLayer Model Scanner helps developers assess the security of open models in the model catalog | Microsoft Community Hub Inside AI Security with Mark Russinovich | BRK227 The Price of Intelligence - ACM QueueUltimate Partner LIVE: Igniting ecosystem excellence at Microsoft Redmond
On May 1–2, something extraordinary happened on the Microsoft Redmond Campus. Over 200 top leaders in the partner ecosystem came together for a high-impact, highly immersive experience—Ultimate Partner LIVE. This wasn’t just another conference. This was a strategic accelerator designed for the 0.01% of partners ready to lead through the next wave of transformation. "We’re doubling down on our Cloud Solution Provider partners—70% of incentives now go to those serving SMBs. With new capabilities, strategic offers, and AI-aligned priorities, CSPs are empowered to scale, retain customers, and lead the AI transformation." — Nicole Dezen, Microsoft, Chief Partner Officer and Corporate Vice President Global Partner Solutions More details here: 👉🏻https://lnkd.in/gA-zT_EW Ecosystem-Led Growth Is No Longer Optional—It’s Imperative The message from Microsoft leadership was clear: the future belongs to those who embrace ecosystem-led growth. Hyperscalers like Microsoft are reshaping the playing field, and the partners who align, adapt, and lead will own the future. It’s no longer about going it alone—it’s about orchestrating value at scale. "Organizational agility and technical intensity aren’t just strategies—they’re imperatives. To lead with innovation, partners must build unique IP, pivot fast, and align deeply with customer needs. At Microsoft, we don’t just keep up with change—we drive it." — Lori Borg, Microsoft, VP Americas GTM, GPS AI and Marketplace: Your Growth Engines for FY26 and Beyond If there was one dominant theme, it’s this: AI and Marketplace are the unstoppable growth engines for what’s next. From building AI-powered solutions that drive real business outcomes, to tapping into the explosive momentum of Microsoft’s commercial marketplace, this is where opportunity lives. Visionary insights from leaders at Tackle.io, WorkSpan, and Suger delivered clear guidance: move fast, align to Microsoft’s evolving Cloud GTM, and win where the market is headed. "Marketplace is no longer optional—it’s the engine for scale, speed, and monetization. With doubled revenue, co-sell incentives, Azure retirements, and embedded commerce, it’s clear: this is the future of go-to-market at Microsoft." — Cyril Belikoff, VP Microsoft, Azure and Industry Clouds Empowering the Future of AI Through Bold Partnerships Incredible fireside chats with leaders like Sandy Gupta, VP at Microsoft, and Pat Lee from NVIDIA, spotlighted how our ecosystem is the catalyst for the next wave of Agentic AI. Microsoft’s strategic alliance with NVIDIA isn’t just a partnership—it’s a platform for innovation at massive scale. "In the era of Agentic AI, our partnership with NVIDIA is accelerating a system of intelligence that is reshaping how enterprises operate—from reimagining employee and customer experiences to redefining business processes. With the democratization of AI through lower token costs and reduced hallucinations, the opportunity for partners to drive innovation, cloud migration, and responsible AI adoption has never been greater." — Sandy Gupta, Microsoft, VP, leading Microsoft Ecosystems of Global Software Companies Workshops That Build, Not Just Teach Forget the passive panels and endless slide decks. Ultimate Partner LIVE was built for action. Attendees rolled up their sleeves in workshops on smarter co-selling, high-conversion GTM plays, and marketplace motions that accelerate growth. Experts like Erin Figer, Reis Barrie, and Ashleigh Vogstad didn’t just share theory—they helped partners build strategies they could apply immediately. Proven Frameworks You Can Put to Work Now Every attendee left with real tools—the 7 Principles of Successful Partnerships, actionable co-sell strategies, and marketplace success frameworks designed for this exact moment in time. These aren’t abstract concepts. They’re battle-tested playbooks for achieving your greatest results in a rapidly changing landscape. High-Trust Networking That Moves the Needle This wasn’t a vendor hall—it was a curated room of decision-makers. Real conversations. Real connections. Real opportunities. From Microsoft leaders to top ISVs, GSIs, and the elite of the partner ecosystem, this was where deals were sparked and futures were shaped. Every Detail Designed for Impact From the moment you stepped on campus to DJ #MarcoPolo’s evening celebration, every experience was crafted to maximize connection, clarity, and action. This event wasn’t built for passive attendance—it was built to help you lead with confidence into FY26. We Are at a Critical Inflection Point AI is moving faster than anyone imagined. Microsoft’s strategies are evolving in real time. And the marketplace is poised for explosive growth. As Microsoft leaders Nicole Dezen, Lori Borg, and Cyril Belikoff made clear: the partners who stay agile, aligned, and ecosystem-first will lead the next era of transformation. Why Ultimate Partner LIVE Might Be the Shortcut You’re Looking For Hear directly from Microsoft decision-makers—on stage and across the table Build your GTM and co-sell strategy in the room with ecosystem experts Engage in workshops that deliver action, not just insight Connect with the people who can unlock your next big opportunity Experience an event intentionally built for the pace of today’s change This wasn’t just an event. It was a launchpad for the leaders who will define what’s next. If you couldn’t join us in Redmond—or just want to revisit the powerful insights shared from the Microsoft stage—the full livestream recording from Ultimate Partner LIVE is now available to you today. Access the replay here: https://lnkd.in/e6sntk9T This is your opportunity to catch up, stay ahead, and lead through the change. Please subscribe to our channel to stay ahead as we plan to bring you more from UP and Ultimate Guide to Partnering Are you ready to lead? Contact me directly at vincem@theultimatepartner.com.
