Azure API Management Your Auth Gateway For MCP Servers
The Model Context Protocol (MCP) is quickly becoming the standard for integrating Tools 🛠️ with Agents 🤖 and Azure API Management is at the fore-front, ready to support this open-source protocol 🚀. You may have already encountered discussions about MCP, so let's clarify some key concepts: Model Context Protocol (MCP) is a standardized way, (a protocol), for AI models to interact with external tools, (and either read data or perform actions) and to enrich context for ANY language models. AI Agents/Assistants are autonomous LLM-powered applications with the ability to use tools to connect to external services required to accomplish tasks on behalf of users. Tools are components made available to Agents allowing them to interact with external systems, perform computation, and take actions to achieve specific goals. Azure API Management: As a platform-as-a-service, API Management supports the complete API lifecycle, enabling organizations to create, publish, secure, and analyze APIs with built-in governance, security, analytics, and scalability. New Cool Kid in Town - MCP AI Agents are becoming widely adopted due to enhanced Large Language Model (LLM) capabilities. However, even the most advanced models face limitations due to their isolation from external data. Each new data source requires custom implementations to extract, prepare, and make data accessible for any model(s). - A lot of heavy lifting. Anthropic developed an open-source standard - the Model Context Protocol (MCP), to connect your agents to external data sources such as local data sources (databases or computer files) or remote services (systems available over the internet through e.g. APIs). MCP Hosts: LLM applications such as chat apps or AI assistant in your IDEs (like GitHub Copilot in VS Code) that need to access external capabilities MCP Clients: Protocol clients that maintain 1:1 connections with servers, inside the host application MCP Servers: Lightweight programs that each expose specific capabilities and provide context, tools, and prompts to clients MCP Protocol: Transport layer in the middle At its core, MCP follows a client-server architecture where a host application can connect to multiple servers. Whenever your MCP host or client needs a tool, it is going to connect to the MCP server. The MCP server will then connect to for example a database or an API. MCP hosts and servers will connect with each other through the MCP protocol. You can create your own custom MCP Servers that connect to your or organizational data sources. For a quick start, please visit our GitHub repository to learn how to build a remote MCP server using Azure Functions without authentication: https://aka.ms/mcp-remote Remote vs. Local MCP Servers The MCP standard supports two modes of operation: Remote MCP servers: MCP clients connect to MCP servers over the Internet, establishing a connection using HTTP and Server-Sent Events (SSE), and authorizing the MCP client access to resources on the user's account using OAuth. Local MCP servers: MCP clients connect to MCP servers on the same machine, using stdio as a local transport method. Azure API Management as the AI Auth Gateway Now that we have learned that MCP servers can connect to remote services through an API. The question now rises, how can we expose our remote MCP servers in a secure and scalable way? This is where Azure API Management comes in. A way that we can securely and safely expose tools as MCP servers. Azure API Management provides: Security: AI agents often need to access sensitive data. API Management as a remote MCP proxy safeguards organizational data through authentication and authorization. Scalability: As the number of LLM interactions and external tool integrations grows, API Management ensures the system can handle the load. Security remains to be a critical piece of building MCP servers, as agents will need to securely connect to protected endpoints (tools) to perform certain actions or read protected data. When building remote MCP servers, you need a way to allow users to login (Authenticate) and allow them to grant the MCP client access to resources on their account (Authorization). MCP - Current Authorization Challenges State: 4/10/2025 Recent changes in MCP authorization have sparked significant debate within the community. 🔍 𝗞𝗲𝘆 𝗖𝗵𝗮𝗹𝗹𝗲𝗻𝗴𝗲𝘀 with the Authorization Changes: The MCP server is now treated as both a resource server AND an authorization server. This dual role has fundamental implications for MCP server developers and runtime operations. 💡 𝗢𝘂𝗿 𝗦𝗼𝗹𝘂𝘁𝗶𝗼𝗻: To address these challenges, we recommend using 𝗔𝘇𝘂𝗿𝗲 𝗔𝗣𝗜 𝗠𝗮𝗻𝗮𝗴𝗲𝗺𝗲𝗻𝘁 as your authorization gateway for remote MCP servers. 🔗For an enterprise-ready solution, please check out our azd up sample repo to learn how to build a remote MCP server using Azure API Management as your authentication gateway: https://aka.ms/mcp-remote-apim-auth The Authorization Flow The workflow involves three core components: the MCP client, the APIM Gateway, and the MCP server, with Microsoft Entra managing authentication (AuthN) and authorization (AuthZ). Using the OAuth protocol, the client starts by calling the APIM Gateway, which redirects the user to Entra for login and consent. Once authenticated, Entra provides an access token to the Gateway, which then exchanges a code with the client to generate an MCP server token. This token allows the client to communicate securely with the server via the Gateway, ensuring user validation and scope verification. Finally, the MCP server establishes a session key for ongoing communication through a dedicated message endpoint. Diagram source: https://aka.ms/mcp-remote-apim-auth-diagram Conclusion Azure API Management (APIM) is an essential tool for enterprise customers looking to integrate AI models with external tools using the Model Context Protocol (MCP). In this blog, we've emphasized the simplicity of connecting AI agents to various data sources through MCP, streamlining previously complex implementations. Given the critical role of secure access to platforms and services for AI agents, APIM offers robust solutions for managing OAuth tokens and ensuring secure access to protected endpoints, making it an invaluable asset for enterprises, despite the challenges of authentication. API Management: An Enterprise Solution for Securing MCP Servers Azure API Management is an essential tool for enterprise customers looking to integrate AI models with external tools using the Model Context Protocol (MCP). It is designed to help you to securely expose your remote MCP servers. MCP servers are still very new, and as the technology evolves, API Management provides an enterprise-ready solution that will evolve with the latest technology. Stay tuned for further feature announcements soon! Acknowledgments This post and work was made possible thanks to the hard work and dedication of our incredible team. Special thanks to Pranami Jhawar, Julia Kasper, Julia Muiruri, Annaji Sharma Ganti Jack Pa, Chaoyi Yuan and Alex Vieira for their invaluable contributions. Additional Resources MCP Client Server integration with APIM as AI gateway Blog Post: https://aka.ms/remote-mcp-apim-auth-blog Sequence Diagram: https://aka.ms/mcp-remote-apim-auth-diagram APIM lab: https://aka.ms/ai-gateway-lab-mcp-client-auth Python: https://aka.ms/mcp-remote-apim-auth .NET: https://aka.ms/mcp-remote-apim-auth-dotnet On-Behalf-Of Authorization: https://aka.ms/mcp-obo-sample 3rd Party APIs – Backend Auth via Credential Manager: Blog Post: https://aka.ms/remote-mcp-apim-lab-blog APIM lab: https://aka.ms/ai-gateway-lab-mcp YouTube Video: https://aka.ms/ai-gateway-lab-demoConnect to private endpoints with Azure Functions
This article demonstrates one approach for Azure Functions to connect to Azure resources such as Azure Storage and CosmosDB using a private endpoint. Additionally, this article demonstrates how to configure the Azure Storage accounts required by Azure Functions so that they're accessible via private endpoints.
Use managed identity instead of AzureWebJobsStorage to connect a function app to a storage account
In a function app, usually we use appsetting AzureWebJobsStorage to connect to storage. This blog shows you how to configure a function app using Azure Active Directory identities instead of secrets or connection strings, where possible. Using identities helps you avoid accidentally leaking sensitive secrets and can provide better visibility into how data is accessed. This will not work if the storage account is in a sovereign cloud or has a custom DNS. IMPORTANT! When running in a Consumption or Elastic Premium plan, your app uses the WEBSITE_AZUREFILESCONNECTIONSTRING and WEBSITE_CONTENTSHARE settings when connecting to Azure Files on the storage account used by your function app. Azure Files doesn't support using managed identity when accessing the file share. That is to say, if your functio app is running on Consumption/EP, plan, you can only delete and recreate function app on app service plan to avoid using File Share. For more information, see Azure Files supported authentication scenarios Below are the steps to do configuration. 1. Enable system assigned identity in your function app and save it. 2. Give storage access to your function app. Search for Storage Blob Data Owner, select it. 3. If you configure a blob-triggered function app, repeat the step 2 to add Storage Account Contributor and Storage Queue Data Contributor roles which will be used for blob trigger. 4. Return to Access Control (IAM), click Role assignments, search for your function app name to confirm the roles are added successfully. 5. Navigate to your function app. Select Configuration and edit AzureWebJobsStorage. Change the name to AzureWebJobsStorage__accountname. Change the value to your storage account name. (The new setting uses a double underscore ( __ ), which is a special character in application settings.) 6. Delete the previous AzureWebJobsStorage. Then you will find your function app still works fine.Azure Database for MySQL bindings for Azure Functions (Public Preview)
The Azure Database for MySQL bindings for Azure Functions is now available in Public Preview! These newly released input and output bindings enable seamless integration with Azure Functions, allowing developers and organizations to build at-scale event-driven applications and serverless APIs that integrate with MySQL, using programming languages of their choice, including C#, Java, JavaScript, Python, and PowerShell. This integration significantly speeds up application development time by reducing the need for complex code to read and write from the database.
