Key AI announcements for software developers from Microsoft Ignite 2025
At Microsoft Ignite 2025, Microsoft unveiled a series of AI innovations that signal a significant evolution in how software developers build, deploy, and scale intelligent solutions. Central to these announcements is Microsoft Foundry, a unified platform designed to simplify the development, orchestration, and governance of AI agents across Microsoft’s cloud and application ecosystem. The announcements also introduced Foundry IQ, enabling secure, compliant access to enterprise data for AI agents, along with a new Foundry Control Plane that provides centralized visibility and operational control. Together, these capabilities help reduce complexity while supporting enterprise-grade security, compliance, and scalability requirements. Additional highlights include expanded model choice and flexibility through enhanced Model Router support and deeper integration of third-party models, as well as new capabilities that allow developers to publish and distribute AI agents directly into Microsoft 365 and Teams, creating powerful new go-to-market opportunities. Read the full article to learn more about these Microsoft Ignite announcements, what they mean for software developers, and how to take advantage of Microsoft’s rapidly evolving AI and Marketplace ecosystem.
Microsoft Ignite 2025 AI announcements: What software developers need to know
Igniting what’s next: What software development companies need to know about Microsoft’s AI announcements at Ignite 2025 The AI landscape took a major leap forward at Microsoft Ignite 2025, and for software development companies and digital natives, the announcements represent a massive opportunity: faster innovation, simplified agent development, access to enterprise‑ready AI platforms, and a dramatically expanded ecosystem to build on. This year, Microsoft introduced the era of agentic AI—and software companies are at the center of this shift. Ignite 2025 formally unveiled Microsoft Foundry, our unified platform for building, governing, and scaling intelligent agents. From new agent runtimes to multi‑agent orchestration, enterprise‑grade knowledge access, and one‑click publishing to Microsoft 365, the momentum creates one clear signal: 💡 AI assistants are becoming intelligent agents—and Foundry is the platform software companies will use to build them. Why Microsoft Ignite 2025 mattered for software companies Across every session, Microsoft doubled down on helping partners accelerate time‑to‑market with agentic AI solutions. Whether you’re building vertical apps, automation copilots, knowledge systems, or developer tools, the new capabilities in Foundry eliminate much of the heavy lifting associated with retrieval, orchestration, compliance, hosting, and model selection. Key themes this year from Azure AI: Unified agent platform across all Microsoft clouds Framework‑agnostic development (bring your own models, tools, or frameworks) Enterprise‑grade governance built into the lifecycle Open ecosystem and interoperability using MCP, A2A, OpenAPI Seamless distribution through Microsoft 365 and Teams Let’s break down what’s new—and what it means for your product strategy. Top announcements for software companies at Ignite 2025 Microsoft Foundry: A unified brand for AI agent development Azure AI Foundry is now Microsoft Foundry—a consolidated platform for building, deploying, and managing intelligent agents. For software companies, this means: One consistent developer experience Shared governance and compliance across products A more integrated ecosystem for publishing and distributing agentic solutions This rebrand isn’t cosmetic—it reflects Microsoft’s strategic shift to deliver a platform built explicitly for the next generation of AI agents. Introducing Foundry IQ: Your enterprise knowledge engine One of the most exciting announcements is Foundry IQ, a new engine that gives agents instant access to enterprise data from SharePoint, OneLake, ADLS, and the web, all governed by Purview. For software companies, this unlocks: Reliable, production‑grade knowledge retrieval without building RAG pipelines Consistent compliance and security models Faster customer onboarding with fewer integration gaps Foundry IQ is a game‑changer for teams who have spent months building retrieval layers or maintaining custom RAG components. Foundry Control Plane: Unified governance for all agents Now in public preview, the Foundry Control Plane enables teams to manage agents across frameworks, clouds, and environments. Highlights: Unified visibility and observability Built‑in security & compliance (Defender, Purview) Fleet‑wide monitoring for cost, health, and risk For software companies offering multi‑tenant solutions or operating in regulated industries, this dramatically simplifies the operational burden of managing AI agents. Agent Framework (public preview): SK + AutoGen, Unified The Microsoft Agent Framework, now in public preview, merges the strengths of Semantic Kernel and AutoGen into a single SDK for building durable, interoperable agents. Software companies gain: A consistent programming model Durable memory Strong interoperability with MCP, A2A, OpenAPI Framework‑agnostic design This is the developer foundation for future AI applications built on Microsoft clouds. Hosted Agents: Enterprise‑grade runtime, no infrastructure needed With Hosted Agents, teams can deploy custom‑code agents directly into a fully managed runtime—no containers, pipelines, or infra setup. What this enables for software companies: Faster deployment cycles Secure, autoscaling environments Simple onboarding for customer‑specific agents Observability and monitoring built in This drastically reduces the operational overhead many software companies face today. Multi‑agent workflows & connected intelligence Ignite 2025 introduced major advancements in multi‑agent orchestration: Built‑in memory across sessions A catalog of 1,000+ Microsoft & partner tools (with private catalogs for software companies) Visual and programmatic orchestration tools Enterprise‑ready coordination for long‑running workflows Foundry IQ for instant knowledge access This allows software companies to design more autonomous, intelligent, and interconnected systems—moving beyond assistants toward true digital workers. Model Router GA + Anthropic partnership expansion There are two major updates for model flexibility: Model Router GA Now supporting 11,000+ models, the router helps developers intelligently choose the best model for each task, optimizing both cost and performance. Anthropic Claude models in Foundry Claude Sonnet 4.5, Opus 4.1, and Haiku 4.5 are now integrated into Microsoft Foundry through an expanded partnership with Anthropic. This gives software companies more choice, capability, and model‑agnostic development paths. One‑click publishing to Microsoft 365 & Teams One of the biggest wins for software companies: Agents built in Foundry can now be published to Microsoft 365 and Teams Chat with one click. This means: Access to hundreds of millions of users Unified governance through Microsoft Admin Center Seamless integration with Copilot experiences For software companies, this is a massive new distribution channel. Why this matters for software development companies Ignite 2025 didn’t just introduce new products—it signaled a platform shift. software companies now have: A full-stack platform for agentic applications - From data access to orchestration, hosting, deployment, and compliance. A unified runtime and SDK - Reducing fragmentation and speeding up development cycles. Enterprise reach through Microsoft 365 - Making your agents as discoverable as apps. A rapidly expanding ecosystem - More models, more tools, more integration points. If you’re building AI-powered products, this is your moment. Get hands-on: Sessions & resources for software companies Here are links to top Ignite sessions to dive deeper. Build & Manage AI Apps with Your Agent Factory AI Agents in Azure AI Foundry: Ship Fast, Scale Fearlessly AI‑Powered Automation & Multi‑Agent Orchestration Agent Developer Guide for Foundry Agent Service The Future of RAG with Agentic Retrieval & AI Search What’s next: December Foundry Council Session Join us on Dec 18 for the Ignite Recap session through the Foundry Partner Council. It’s the best opportunity for software companies to: Get deeper into the new capabilities Share partner/DN feedback Join focus groups For more information about the December 18 session, contact foundrycouncil@microsoft.com or visit aka.ms/foundrycouncilAmericas & EMEA Fabric Engineering Connection
🚀 Excited to announce the upcoming Fabric Engineering Connection call for Microsoft partners! Join us on Wednesday, December 10, from 8–9 am PT (Americas & EMEA) and Thursday, December 11, from 1–2 am UTC (APAC) for an insightful session featuring Erin Stellato and Mark Brown. This week’s focus: 🎯 GitHub Copilot in SSMS with Fabric SQL 🎯 User-Data Function Integration with Cosmos DB in Fabric Don’t miss the opportunity to learn directly from the experts and discover the latest innovations in Microsoft Fabric. To participate, make sure you’re a member of the Fabric Partner Community Teams Channel. Join here: https://lnkd.in/g_PRdfjt Let’s connect, learn, and shape the future of data together! 💡APAC Fabric Engineering Connection call
🚀 Excited to announce the upcoming Fabric Engineering Connection call for Microsoft partners! Join us on Wednesday, December 10, from 8–9 am PT (Americas & EMEA) and Thursday, December 11, from 1–2 am UTC (APAC) for an insightful session featuring Erin Stellato and Mark Brown. This week’s focus: 🎯 GitHub Copilot in SSMS with Fabric SQL 🎯 User-Data Function Integration with Cosmos DB in Fabric Don’t miss the opportunity to learn directly from the experts and discover the latest innovations in Microsoft Fabric. To participate, make sure you’re a member of the Fabric Partner Community Teams Channel. Join here: https://lnkd.in/g_PRdfjt Let’s connect, learn, and shape the future of data together! 💡Excited about the Microsoft Marketplace?
Good morning, as the former BizApps PDM at Microsoft driving 100's of ISV solutions to the marketplace I wanted to ensure the community realized that the marketplace is now driving leads directly to partners from customers around the world exploring the marketplace. If you have been in the marketplace for a few months and are seeing little interest or leads it should guide you to further optimize your listing and also do a competitive analysis of other solutions in the marketplace. I am and have always been excited about the Microsoft Marketplace and hope you are too! - John O'Donnell https://www.linkedin.com/in/johnodonnellmsft/December edition of Microsoft Marketplace Partner Digest
Microsoft Ignite 2025 - Marketplace highlights Microsoft Ignite was packed with announcements and insights for Marketplace partners. From new commerce capabilities to AI-driven innovations, here are some key takeaways: Global expansion of Microsoft Marketplace - Microsoft announced that the reimagined Microsoft Marketplace, which launched in the U.S. earlier this year, is now globally available. This expansion includes new APIs for distribution partners, enabling them to link their own cloud marketplace with Microsoft’s, opening significant opportunities for software companies in SMB and mid-market segments. 🎬 Watch a recorded webinar with TD SYNNEX on the power of distribution to accelerate SMB marketplace sales. Global availability of Resale Enabled Offers - This capability allows software development companies to and channel partners to resell software solutions directly through Marketplace, simplifying transactions, expanding reach, and scaling revenue. 👉 Read more about this announcement and get started Introducing App Accelerate - A unified offer that brings together incentives, benefits, and co-sell support across the Microsoft Cloud. App Accelerate provides end-to-end technical guidance, developer tools, and go-to-market resources so software development companies can innovate and scale. Previews are beginning now, with full availability planned for 2026. ✅ Sign up to receive updates Enhanced Partner Marketing Center - Discover, customize, and launch campaigns faster with intelligent search and AI-powered tools—all on one connected platform. The current Partner Marketing Center will remain available as the new and enhanced Marketing Center platform launches in early 2026 with 24 campaigns-in-a-box, aligned to FY26 solution plays. ✨ Get ready for the new era of partner marketing Frontier Partner badge – New customer-facing badges recognize top services, channel, and software development company partners that are driving AI transformation with customers and offer them an opportunity to differentiate themselves from the competition. 🛡️Differentiate your AI-first leadership Catch up on Microsoft Ignite sessions Ignite 2025 delivered powerful insights and announcements for Marketplace partners, and now you can catch up on the sessions you missed. Explore these recorded keynotes to learn about new capabilities, partner programs, and strategies to accelerate growth through Microsoft’s ecosystem. Ignite opening keynote Ignite partner keynote: Powering Frontier Partnerships Additionally, we’ve compiled recordings of relevant Marketplace partner and customer sessions so you can watch on-demand. Revisit Marketplace-focused sessions and resources. Just look for the ✨ icon below. Partner sessions: PBRK415 Grow your business with Microsoft AI Cloud Partner Program Find out how the Microsoft AI Cloud Partner Program helps you grow with new benefits, designations, and skilling opportunities. This session covers updates like the Frontier Partner Badge, Copilot specialization, and streamlined Marketplace engagement—all designed to accelerate your AI transformation journey. PBRK416 Accelerate Growth through Partner Incentives Explore how Microsoft is boosting partner growth with streamlined incentives, AI-first strategies, and new designations like Frontier Distributor. This session covers expanded investments in Azure Accelerate, Copilot solutions, and security practices—plus insights on how to capitalize on evolving programs and co-sell opportunities. PBRK417 Partner: Connect, Plan, Win – Enhancing Co-sell Engagement Discover how to enhance collaboration, optimize joint efforts, and drive success in shared initiatives. Gain insights into improving interactions with Microsoft sellers and leveraging opportunities, along with guidance on proactive co-selling to align your goals with Microsoft's for sustained growth. PBRK418 Partner: Benefits for Accelerating Software Company Success Learn about the resources and benefits available for software development companies across all stages of the build, publish and grow journey in MAICPP. Whether you’re developing a new agent solution or working toward a certified software designation, there are targeted skilling opportunities, technical resources, and GTM benefits to help. Tap into new investments for AI apps and agents and hear from your peers on how they’ve used rewards such as customer propensity scores and Azure sponsorship. PBRK419 SI & Advisory Partner Readiness: Accelerating the Journey to Frontier Understand how Microsoft is empowering our SI and advisory partners to accelerate frontier firm readiness for our Enterprise customers by driving AI transformation with agentic solutions and services. ✨PBRK420 Executing on the channel-led marketplace opportunity for partners See how Microsoft’s unified Marketplace drives partner growth with resale-enabled offers, creating scalable channel sales and co-sell opportunities. This session shares practical steps to build a sustainable Marketplace practice and leverage the partner ecosystem for greater reach and profitability. PBRK421 Enabling a thriving partner ecosystem: New CSP Authorization Criteria Dive into what’s new for Cloud Solution Providers, including updated authorization requirements and designations that help you stand out. This session covers steps to choose the right tier, build trust as a customer advisor, and prepare for growth with AI-driven solutions and Copilot offerings. PBRK422 The Future of Partner Support: Customer + Partner + Microsoft Discover ‘Unified for Partners,’ Microsoft’s new support model designed for CSP partners to deliver customer success at scale. This session introduces the Support Services designation, offering faster response times, financial incentives, and integrated tools to strengthen your support capabilities. PBRK423 Partner Execution at Scale with SME&C Explore growth opportunities in the high-potential SME&C segment. This session highlights investments in co-selling, AI-first strategies, and what it means to become ‘customer zero,’ with examples of frontier firms driving innovation at scale. ✨PBRK424 Marketplace Success for Partners—from SMB to Enterprise Learn how to build, publish, and monetize AI-powered solutions through Microsoft Marketplace. This session shares a proven approach to align your Marketplace strategy with your sales motion and unlock new revenue opportunities. PBRK272 Accelerate Secure AI: Microsoft’s Security Advantage for Partners Explore Microsoft’s integrated security solutions and learn how to help customers strengthen their defenses in the AI era. This session highlights partner opportunities, resources to grow your security practice, and what it takes to lead as a next-generation security partner. Customer Sessions: ✨Microsoft Marketplace: Your trusted source for cloud solutions, AI apps, and agents | STUDIO47 Hear from Cyril Belikoff, VP of Commercial Cloud & AI Marketing, sharing the reimagined Microsoft Marketplace—the gateway to thousands of AI-powered apps, agents and cloud solutions—all built to accelerate innovation and drive business outcomes. Discover how customers benefit from faster deployment, seamless integration with Microsoft tools, and trusted solutions, and how partners can scale their reach, accelerate sales, and tap into Microsoft’s global ecosystem. Azure Accelerate in action: Confidently migrate, modernize, and build faster Join Cyril Belikoff for a rapid Q&A that spotlights real-world customer success and the transformative impact of Azure Accelerate. Hear how customers like Thomson Reuters achieved breakthrough results with our powerful offering that provides access to Microsoft experts and investments throughout your Azure and AI journey. ✨BRK213 Microsoft Marketplace: Your trusted source for cloud and AI solutions Discover how the reimagined Microsoft Marketplace is reshaping the future of cloud and AI innovation. In this session, we’ll explore how Microsoft Marketplace—unifying Azure Marketplace and Microsoft AppSource—empowers organizations to become Frontier Firms by streamlining the discovery, purchase, and deployment of tens of thousands of cloud solutions, AI apps, and agents. ✨BRK215 Boost cloud and AI ROI using Microsoft Marketplace As organizations embrace an AI-first future, cloud adoption is accelerating to drive innovation and efficiency. This session explores practical strategies to optimize cloud investments—balancing performance, scalability, and cost control. Learn how Microsoft Marketplace enables rapid solution deployment while maintaining governance, compliance, and budget discipline. Build a resilient, cost-effective cloud foundation that supports AI and beyond. Community Recap Partner of the Year Award Winners Congratulations to the winners and finalists of the 2025 Microsoft Partner of the Year Awards in the Marketplace category! 🏆 Explore all winners and finalists Fivetran earned the top honor as Marketplace Partner of the Year for its innovation in automating data movement on Microsoft Azure, enabling enterprises to accelerate AI and analytics initiatives. Varonis Systems Inc. and Bytes Software Services were recognized as finalists for delivering exceptional solutions and driving customer success through Marketplace. What’s Coming Up AI-powered acceleration: Scale faster in Microsoft Marketplace 📆 Thursday, December 04, 2025, at 9:00 AM PST Microsoft Marketplace is no longer just a procurement convenience; it’s a strategic revenue engine. Dive into operational readiness, CRM-native automation, seller engagement, trust signals, and AI-enabled acceleration. Whether you're just getting started or looking to optimize your Marketplace motion, this session will provide you with information that will turn your first sale into a repeatable growth engine. Scale smarter: Discover how resale enabled offers drive growth 📆 Friday, December 05, 2025, from 11:00 - 12:00 PM GTM+1 Discover how resale enabled offers help software development companies to scale through the Microsoft Marketplace by simplifying transactions, expanding reach and accelerating co-sell opportunities. Chart your AI app and agent strategy with Microsoft Marketplace 📆 Thursday, December 11, 2025, from 8:30 - 9:30 AM PST Organizations exploring AI apps and agents face a critical choice: build, buy, or blend. There’s no one-size-fits-all—each approach offers unique benefits and trade-offs. Tune in for insights into the pros and cons of each approach and explore how the Microsoft Marketplace simplifies adoption by providing a single source for trusted AI apps, agents, and models. Office hours for partners: Marketplace resale-enabled offers 📆 Thursday, December 18, 2025, at 8:30 AM PST Tune in to explore resale enabled offers through Microsoft Marketplace. This recently announced capability enables software companies to expand into new markets globally, at scale, and without additional operational overhead. Dive deep into the workflow and requirements for these deals. Learn about reporting and best practices from those that are already selling globally with resale enabled offers. Microsoft Ignite will return to San Francisco next year 📆 November 17-20, 2026 Sign up now to join the Microsoft Ignite early-access list and be eligible to receive limited‑edition swag at the event. 💬 Share Your Feedback! We truly appreciate your feedback and want to ensure these Partner Digests deliver the information you need to succeed in the marketplace. If you have any feedback or suggestions on how we can continue to improve the content to best support you, we’d love to hear from you in the comments below!Transitioning SaaS Offers with Multi-Year Pricing from AppSource to Azure Marketplace
When a SaaS transactable offer on Microsoft AppSource includes a pricing plan for more than 1 year, the offer is delisted from AppSource and becomes available on Azure Marketplace. This is due to the platform's structure: AppSource primarily supports monthly or annual subscription models for SaaS offers. Any pricing model that exceeds 1 year (e.g., 2-year, 3-year plans) is outside the scope of AppSource’s transaction capabilities. When a SaaS solution introduces https://learn.microsoft.com/en-us/partner-center/marketplace-offers/marketplace-commercial-transaction-capabilities-and-considerations, it is automatically transitioned to Azure Marketplace, which can accommodate longer-term contracts and subscription models (such as 2-year, 3-year, or longer terms). Azure Marketplace is designed for more complex transactions, including multi-year deals, and supports deeper infrastructure integration and contract management features compared to AppSource. Thus, any SaaS offer that requires multi-year pricing terms will shift from AppSource to Azure Marketplace, where such transactions can be handled effectively.How we talk about the value of Microsoft Marketplace with customers
At Microsoft Ignite 2025, we introduced the reimagined Microsoft Marketplace to our customers as your trusted source for cloud solutions, AI apps, and agents. This brief, 20-minute breakout session talked about how Marketplace is empowering organizations to become Frontier Firms by streamlining the discovery, purchase, and deployment of tens of thousands of partner solutions. You can watch the session on the Ignite site or on YouTube and read the synopsis below to see how our team pitches Marketplace to our shared customers. We encourage you to provide this and our other customer-focused session on cost optimization to your customers! They can watch a Marketplace demo and learn more at Microsoft.com/Marketplace. BRK213 Microsoft Marketplace: Your trusted source for cloud and AI solutions How Microsoft Marketplace empower the shift to AI-first Frontier Firms are leading the shift to AI-first. Microsoft Marketplace, as an extension of the Microsoft Cloud, is empowering this Frontier transformation by connecting our customers to our partner ecosystem. Marketplace is unique in that customers can discover and purchase solutions in our storefront, in Microsoft products, and through distributed marketplaces through channel partners. Marketplace offers the largest catalog of AI apps and agents in the industry (4,000+ and growing), including so many of the leading innovators in this category. We’re seeing incredible momentum with customers adopting Marketplace: 2X+ sales growth again this year, 75% increase in average spend, and ~2X increase in AI solutions purchased. Microsoft Marketplace value AI apps and agents for every use case Marketplace allows you to choose thousands of AI apps and agents that match your scenario and stack, which simplifies deployment and decreases time-to-value. When you need to ground your AI solution, Marketplace has more than 11,000 models to choose from to ensure you get fast, relevant, and accurate context. You have confidence that solutions integrate natively so that employees can get what they need in the flow of work when using Microsoft products. Comprehensive catalog across cloud solutions and industries As organizations transition to becoming Frontier Firms, it fuels more cloud adoption. Marketplace has the most comprehensive catalog of solutions. Additionally, there are a host of business applications that meet exact needs in functions like HR, legal, and project management. You can access everything from Microsoft – a business partner you know and trust. Solutions come from vetted Microsoft partners which gives peace of mind with purchase. As tech buying responsibilities grow outside of IT, Marketplace keeps teams on the same page while allowing them to get what they need and supports try-before-you-buy scenarios with trials and POCs. Everything your organization buys through Marketplace is consolidated in a single view. Maximize investments with a consumption commitment A Microsoft Azure Consumption Commitment (MACC) commits your organization to a certain dollar amount of cloud spend. When you fulfill that commitment, it unlocks discounts on Azure infrastructure. Microsoft is unique in that we offer a 100% match on eligible solutions through Marketplace with no limit. Today, 85% of Microsoft customers with MACCs are buying through Marketplace. We have 3,800+ eligible solutions and that number grows every day. Integrated experience from discovery to deployment You can find and deploy solutions in our storefront but also in the Microsoft products you know and use every day -- agents in Microsoft 365 Copilot, apps in Teams, models in Microsoft Foundry, a host of solutions in Azure portal, and more. We’re continuing to build out capabilities that allow you to use AI for an even better Marketplace experience. For example, you can now get Marketplace recommendations using Copilot in Azure portal. As we look to make an AI-infused commerce platform, you’ll continue to see improvements here. Empower your channel, get the benefits of Marketplace We aim to empower customers to buy how they want to buy, whether that’s through us and our Marketplace or relying on the channel. If you procure technology through a channel partner, you can bring that partner to source Marketplace solutions on your behalf. One way to do that is through resale enabled offers, which allow partners to work together so software companies can defer the sales and integration of their products to their channel partners. This means your IT provider can better service you. We have several other channel-led Marketplace opportunities in our portfolio, and all a partner has to do is enroll.APAC Fabric Engineering Connection call
Are you a Microsoft partner that is interested in data and analytics? After a two-week break for Ignite and Thanksgiving, be sure to join us for this week's Fabric Engineering Connection calls! Yitzhak Kesselman will be presenting on the brand-new Microsoft Fabric IQ, just announced during Ignite, followed by Shuaijun Ye with Environment Best Practices. The Americas & EMEA call will take place Wednesday, December 3, from 8-9 am PT and the APAC call is Thursday, December 4, from 1-2 am UTC/Wednesday, December 3, from 5-6 pm PT. This is your opportunity to learn more, ask questions, and provide feedback. To participate in the call, you must be a member of the Fabric Partner Community Teams channel. To join, complete the participation form at https://aka.ms/JoinFabricPartnerCommunity. We look forward to seeing you at the calls!
