best practices
145 TopicsStop restricting the agent. Start restricting its environment.
Human review improves safety but limits autonomy. Standing credentials preserve autonomy but increase risk. With Azure SRE Agent, we found a safer middle by moving control out of the model and into the runtime around it.639Views1like1CommentWhat the New API Management AI Gateway Tier Changes for App Service-Hosted Agents
A runnable App Service agent sample that uses the dedicated API Management AI Gateway tier for governed model and MCP tool access, streaming, policy enforcement, identity separation, and telemetry.504Views0likes0CommentsMemory Dump Collection using Procdump.exe for App Service (Windows)
A memory dump is a snapshot of the contents of a computer's volatile memory (RAM) stored for analysis or debugging purposes. ProcDump is a command-line tool designed to monitor applications for CPU/Memory spikes and generate crash dumps when spikes occur. Administrators or developers can then use these dumps to pinpoint the cause of the spikes. This guide will walk you through collecting a memory dump using Procdump.exe for applications hosted on App Service (Windows).5.8KViews3likes1CommentZero Ops: Agents Operate, Humans Govern
How to design, build, and grow an agentic operations practice — and what becomes possible once you do. A note on scope: the patterns in this guide apply to any agentic operations platform. The specifics — the pricing model, the built-in capabilities, the primitives named throughout — are Azure SRE Agent. Where something is a property of the product rather than a universal truth, it’s called out. Remember when? Remember the 3am page? The one where you sat on the edge of the bed with a laptop balanced on your knees, hunting through six dashboards to work out whether the thing that woke you was even real. Half the time it wasn’t. Remember the cost review? Somebody exports a month of billing to a spreadsheet, three engineers spend a fortnight arguing about which resources are actually orphaned, and by the time you’ve agreed on a plan the next month’s bill has already landed. Remember the zero-day? The all-hands marathon. Two days of people cancelling everything, tracing which services pulled the affected package, hand-patching in an order nobody had time to write down. And remember the CVE backlog — the one everyone knows about, the one that only ever grows, because triaging it properly would take a team you don’t have? None of that was a failure of effort. It was the operating model. For decades it looked like this: humans operated, software assisted. We built dashboards, alerts, runbooks, automation scripts, and eventually copilots — and through every one of those advances, the human was still the operator. That’s the part that’s changing. And it’s genuinely good news. Agents operate. Humans govern. That’s Zero Ops. And the best part is you don’t have to invent it — the path is already well-worn. The five things worth knowing before you start Everything below comes from building and running agentic operations at scale. If you read nothing else, read these. 1. Zero Ops is the destination — and it doesn’t mean zero humans. It means removing operations from humans. People don’t disappear; they move up the stack. They set the intent, govern the system, and validate outcomes. Nobody’s job becomes “watch the dashboard” ever again. 2. The model is not the moat. This was the biggest surprise. The model matters less every year. You can swap models. What you cannot swap is the context and governance wrapped around them. That’s the durable asset you’re building. 3. Context creates intelligence. Agents become genuinely useful the moment they’re grounded in reality — your source code, your live telemetry, your institutional knowledge, your incident history, and the skills and tools to act on all of it. Swap the model and the system still works. Swap the context and it stops being useful. 4. Governance creates trust. Enterprises don’t trust intelligence. Enterprises trust controls. Identity, audit, evals, rollback, evidence. Governance is what earns the right to automate — and it’s liberating rather than restricting, because it’s what lets you say yes. 5. Metrics create permission. Nobody should trust an agent because a demo looked impressive. Trust comes from numbers you can run yourself. If only the vendor can produce the number, it’s marketing. If you can query it, it’s a metric. The climb, and the one thing that changes at each rung Here’s the elegant part. As an agent matures, the thing that changes isn’t how clever it is. It’s what the human reviews. Rung What the agent does What the human reviews Crawl Suggests. A human still does the work. Their own work Walk Does the work one step at a time, asking before each action. Every step Run Completes whole tasks and hands back a change to approve. The diff Fly Fixes, deploys to test, validates the outcome itself, posts the evidence. The outcome And between Run and Fly sits the review wall. When an agent produces hundreds of changes a month, reviewing someone else’s diff is nearly as hard as writing it yourself. That’s where teams plateau — not because the agent isn’t capable, but because the humans became the bottleneck. Fly is how you get past it: you move the unit of human review from the diff to the outcome. Hold that thought — we’ll come back to it, because it’s the most exciting part of the whole journey. Getting there is a design problem before it’s a technology one. Agents that climb were built to climb. So let’s start where every one of them starts — how you scope it, what you teach it, and what you connect it to. Part One — Designing your agent Before you start: what you’ll want in place The good news is that this list is short, and you almost certainly have most of it already. There’s no platform to stand up first. Diagnostic logs turned on for the services you care about. An agent can only reason about what your system actually emits. Telemetry the agent can query. It doesn’t need to live in one place — most estates have it spread across several platforms, and that’s completely fine. What matters is that each of those places is reachable and queryable. This is what turns “something is wrong” into “here’s why.” Read access to the sources that hold the answers — your subscriptions, your repositories, your incident history, your ticketing system. An identity for the agent, with permissions scoped the way you’d scope a new team member’s on day one. A repository for agent artifacts. Skills, custom agents and tool definitions are production code. They deserve version control from the first one. That’s it. Nothing here is agent-specific — it’s the same hygiene that makes a system operable by humans. If your on-call engineer can answer a question at 3am, your agent can too. Step 1: Scope it — how many agents do you actually need? Good news first: fewer than you think. Teams often assume one agent per team, and that’s usually wrong. Five considerations decide it: 1. Fixed cost. Every Azure SRE Agent carries a small baseline charge just for existing — think of it as keeping the lights on so the agent is ready the instant something happens. That means consolidating where you can is genuinely good hygiene: fewer agents, each with a clear job, means every dollar goes toward outcomes rather than idle capacity. 2. Context. This is the big one. An agent is powerful because it holds a complete picture of a system. Split one application’s context across two agents and you’ve halved what each of them knows — usually the half that mattered. Don’t split an app’s context. 3. Data residency at rest. If data legally cannot leave a geography, that’s a boundary, and it’s a real one. Separate agent, separate region. 4. Team and organisational access boundaries. Genuinely different permission sets and genuinely different blast radius deserve genuinely different agents — each with its own identity, so least-privilege actually means something. 5. At least one dev agent. Always keep a non-production agent to test changes before they touch prod. Same reason you have a staging environment. That’s the whole list. Everything else, consolidate. Ideally, this is what it looks like. A single agent per application or product module — never splitting one across two. Explicit production and test agents. A regional agent wherever residency genuinely demands one. Every split maps to one of the five considerations above. The one thing to protect in every split decision is context. When two agents need to reason about the same problem, each one only has half the picture. If you absolutely must split context — say your org structure or access boundaries require it — plan for those agents to talk to each other so the full context is still reachable. Multiple patterns work. A dedicated infrastructure team that manages AKS clusters and only cares about the upkeep of that infrastructure? A single agent scoped to those resources makes perfect sense — they have a clear domain, a clear boundary, and a clear job. An application team whose service depends on a database? Give that application’s agent access to the database rather than standing up a second agent and splitting the problem’s context across two. There’s no single right layout — the principle is: keep the context of the problems you’re trying to solve together. Step 2: Teach it — context is king This is where the magic actually comes from, and it’s the step most worth over-investing in. Your agent needs five kinds of context: Source code — what the system actually does Production telemetry — what it’s doing right now Institutional knowledge — how your team really operates Previous incidents — what broke before, and why Skills and tools — how to act on any of it Connect the first two and you have a competent log reader. Add the middle two and it starts sounding like someone who’s worked on your team for a year. How you actually bring context in: Connect the real sources — subscriptions and their telemetry, your repositories, your incident history, your ticketing system. Knowledge as markdown in a repo. This is the pattern that works best. LLMs are exceptionally good with markdown files, and putting your knowledge in a connected repository means it’s version-controlled, reviewable, and — critically — updatable by the agent itself. Your scheduled tasks can automatically improve these files as the agent learns, closing the loop between insight and artifact. Connect external knowledge via MCP. If your team’s knowledge lives in Confluence, SharePoint, or another platform, connect it as an MCP server rather than migrating it. The agent queries it at runtime. Upload documents. Architecture diagrams, architecture decision records, design docs, onboarding guides. It reads all of it. Just talk to it. This is the underrated one. Tell it how your system works. Explain that “the blue cluster” means the EU stamp, that Tuesday deploys are riskier, that this alert is always noise before 8am. Ask it to summarise your architecture back to you — where it’s wrong, you’ve found a context gap, and you can fill it on the spot. One thing to be deliberate about: don’t dump everything. If you’ve accumulated years of documentation, runbooks, and tribal knowledge, resist the urge to pour all of it in on day one. Garbage in, garbage out. The agent will work with whatever you give it, and outdated or contradictory knowledge makes it worse, not better. Curate intentionally. Start with the knowledge that matters for the scenarios you’re tackling first, make sure it’s current, and grow from there. Teaching an agent feels remarkably like onboarding a sharp new hire. The difference is it reads everything you give it, overnight, and never forgets. And you don’t have to teach it everything at once. This is the part worth saying plainly, because the size of an estate can feel paralysing. You are not trying to pour your entire organisation into an agent before it becomes useful. You teach it the parts that matter, and you do it organically — one solution at a time. Start from your toil. Write down the things that actually wake your engineers up, the tasks your team does over and over, the investigation everyone dreads because it takes four hours and always ends the same way. Pick the top one. Coach the agent through that single scenario the way you’d coach a new engineer through their first on-call shift — the context it needs, the sources it should check, the judgement calls that aren’t written down anywhere. Then do the next one. Each scenario you teach is narrow, which means it’s cheap and fast to get right. And each one compounds: the context you gave it for scenario one is already there when you start scenario three. Six weeks in, you’ll notice it knows your system well enough to help with things you never explicitly taught it. Don’t boil the ocean. Boil the thing that’s burning you. Step 3: Create the artifacts — understand the primitives, then build Before you build anything, it helps to understand the three primitives you’re building with — because the difference between them is what gives you consistency. The meta agent is your agent out of the box. It has the LLM’s world knowledge plus all the context you’ve connected — your code, your telemetry, your documents, your memory. It’s versatile: it can investigate, reason, plan, and act. But it’s non-deterministic. Ask it the same question twice and it might take different steps, in a different order, and format its findings differently. That’s fine for exploration. It’s not fine for the 3am incident that needs to run the same way every time. Custom agents give you that consistency. A custom agent is a specialist with its own instructions, its own tools, and its own scope. Think of it as the what — the plan. The Zava learning lab’s learning-ops agent is a good example: it tells the agent exactly how to handle an incident — what to check, in what order, what to post, how to format the report. Every run follows that plan. Custom agents are scoped — they’re only invoked when you specifically ask for them (via /agent in chat, or via a response plan or scheduled task). That scoping is itself a governance lever, which we’ll come back to in Step 5. Skills are the how. They’re reusable procedures that teach the agent how to do a specific thing — query your Kusto cluster, restart a container app, read an IcM incident, run a particular diagnostic sequence. Skills are universal: both the meta agent and any custom agent can use them. A single skill written once is available everywhere. The key insight: the meta agent alone will get you far, but it won’t do the same ten steps next time, or in the same order, or produce the same kind of report. Custom agents and skills give you that repeatability — and repeatability is what you need for automation you trust. Now — how you actually create them. There are exactly two on-ramps, and which one you take depends on whether you already know the answer. Path A — you have a runbook (a known problem). Throw the runbook at the agent and ask it to build the artifacts: the skill, the custom agent, the tool definitions. Review what it produces, refine it, and have it cut a pull request into your repository. A procedure you’d have hand-written over a week arrives in an afternoon. Path B — you don’t (a complex or unknown problem). Work it interactively. Hand the agent the live problem and investigate together. Let it dig, watch it waver, correct its wrong turns, point it at the source it didn’t know about. When you finally crack it — that’s the moment. Ask it to turn what just happened into a custom agent, a skill, a tool. The next time that problem appears, it’s automatic. Path B is the one people don’t expect, and it’s the more valuable of the two. Your best artifacts aren’t written at a desk. They’re precipitated out of real investigations that worked. Every hard incident you solve together becomes an incident you never have to solve again. This isn’t unusual, either — teams everywhere now run skill-creating skills, agent-building skills, and MCP-server-building skills. Using the agent to build more of the agent is simply how this works now. Step 4: Test it — playground first, then non-prod Treat agent artifacts like code, because they are. Start in the playground — a safe space to exercise a skill against realistic inputs without touching anything. Then promote to a non-production system where the agent can act for real against resources that don’t matter. You won’t get everything right before production, and you don’t need to. Get the critical parts right — the core logic, the safety boundaries, the happy path — and then put it on real work. That’s where you find out what it’s actually like. From there, use evals to improve continuously. Every real run produces one, and reading them is how you find out whether the artifact holds up outside the playground. Part Two covers what to do with that signal — including how to wire it back into the artifacts automatically. And because these are production artifacts, they belong in source control from the beginning — with review, diffs, and rollback. Step 5: Govern it — earn the right to automate Remember principle four: governance creates trust. This is where you make it concrete. Before anything touches production, you decide who the agent is, what it’s allowed to do, what rules gate its actions, and what checks run in context. These controls layer on top of each other, and together they’re what lets you say yes to autonomy with confidence. Identity and access Your agent authenticates as a managed identity — system-assigned or user-assigned — and you scope it with normal Azure RBAC at the subscription, resource group, or management group level. Out of the box, Azure SRE Agent offers two access tiers: Reader — read-only access to your resources. This is all your agent needs for investigation, root-cause analysis, and reporting. It’s the right starting point. Privileged — adds resource-type-specific contributor roles (like Container App Contributor) based on what’s detected in your environment. This is what the agent needs for actions: restart, scale, rollback, configuration changes. Most teams start with Reader and add Privileged only on the resource groups where they want the agent to act. If neither tier fits — maybe you want the agent to restart App Services but never touch network rules — create a custom RBAC role with exactly the permissions you need and assign it to the agent’s managed identity. The agent’s identity is its security boundary; treat it the way you’d treat any other service principal. Run mode This is the single biggest lever. In Review mode, the agent proposes actions and waits for a human to approve each one. In Autonomous mode, it acts on its own within the bounds you’ve set. Most teams start every scenario in Review, watch it work for a few weeks, and then selectively move well-understood scenarios to Autonomous. That graduation is the Crawl-to-Run climb in practice. There’s a third thing worth understanding: what happens when the agent doesn’t have the privileges to act. If the agent’s managed identity lacks the RBAC permission for an action, it doesn’t fail silently — it asks. An Administrator can grant temporary elevation via on-behalf-of (OBO), which lets the action execute using the human’s credentials rather than the agent’s identity. This is the human-in-the-loop pattern at its most precise: the agent does the investigation, proposes the action, and a human with the right privileges authorises it in context. The agent never accumulates permissions it doesn’t need permanently, and the audit trail shows exactly who approved what. Tool controls Every tool the agent has access to can be set to one of three states: Allow — the tool executes without asking. Good for safe read operations you’re confident about. Ask — the tool pauses for human approval before running. Good for actions you trust but want to see before they happen. Off — the tool is completely disabled. The agent can’t use it at all. This is the first governance layer — simple, per-tool toggles. Need the agent to query your Kusto cluster but never write to it? Allow the read tool, turn the write tool off. Need it to restart an App Service but never delete one? Allow the restart, turn delete off. This is how you define the agent’s basic operational envelope. Some actions — like restarting a healthy service or scaling up a container app — may not need any gating at all. Others — like modifying a network security group or changing a database configuration — absolutely do. The right setting depends on how much autonomy you want the agent to have and how much you want a human involved. There’s no single right answer; there’s the answer that fits your comfort level today, and it can change tomorrow. Tool access policies Tool controls are per-tool on/off switches. Tool access policies go deeper: they let you write pattern-based rules that match tool names and even command arguments. Examples: - “Deny any command containing delete “ — bash(az * delete *) matches any az ... delete ... command regardless of which tool executes it. - “Allow all monitoring queries without approval” — so your read-only investigation flow runs uninterrupted. - “Ask before any deployment command” — so deploys always pause for a human. Policies apply at three scopes: Scope Who sets it What it can do Global Admin Allow, Ask, or Deny — across the entire agent Custom agent Admin or author Allow only — widen access within global boundaries for a specific custom agent Thread Any user Allow only — temporary override for one conversation The key principle: a global deny cannot be overridden by a lower scope. A custom agent or thread can widen access but never weaken a global deny. This means an admin can set a floor — “nobody, human or agent, can run a delete command” — and know it holds. Hooks Policies match patterns. Hooks evaluate context. This is the layer that handles the cases patterns can’t express. Four hook events: Event When it fires What you’d use it for Start A new thread begins Seed context, validate the trigger, tag the conversation PreToolUse The agent is about to call a tool Inspect the arguments, allow/deny/ask based on what you see PostToolUse A tool just returned Audit the result, flag sensitive output, trigger follow-up Stop The agent is about to finish Validate that the work is complete, reject and keep the loop running if it’s not Hooks can be prompt-based (an LLM judge evaluates the situation) or command-based (a bash or Python script runs deterministically). They sit at the highest priority in the decision chain — a hook allow overrides everything below it, and a hook deny blocks immediately. Here’s where it gets practical. Say the agent is investigating a performance issue and discovers a corrupt database index. It decides to drop and rebuild the index — exactly what a DBA would do. But you don’t want the agent to ever drop a table. How do you allow one and prevent the other? Three layers, working together: Tool access policy: a global deny on any command matching *DROP TABLE* . Pattern-based, unconditional, always enforced. Custom agent scoping: create a database-maintenance custom agent with instructions that explicitly say “you may drop and rebuild indexes; you may never drop tables.” The custom agent only has the database tools it needs — nothing else. The blast radius is contained by design. PreToolUse hook: a script that inspects the actual SQL command. It allows DROP INDEX , denies DROP TABLE , and can require approval for any DDL command above a risk threshold you define. The policy catches the obvious pattern. The custom agent constrains the scope. The hook handles the edge cases that patterns miss. This is the full stack working together. Scoping automations to a custom agent is one of the most powerful governance levers you have. Instead of giving the meta agent broad database access, you create a specialist with its own tools, its own instructions, its own tool access policies, and its own hooks. The meta agent can investigate and recommend. Actual database changes only happen through the custom agent, with guardrails purpose-built for that domain. Who can configure the agent RBAC extends to the agent itself. Four built-in roles govern who can do what: Role What they can do Administrator Full control — approve actions, manage connectors, configure hooks and policies, change run mode, deploy artifacts Author Create custom agents and tools, upload knowledge, author response plans and incident configurations, manage connectors Standard User Chat, run diagnostics, request actions, create scheduled tasks Reader View conversations and configuration — read-only Separation of duties applies here the same way it applies everywhere else: the person who builds a skill shouldn’t necessarily be the person who promotes it to Autonomous. Only Administrators can approve infrastructure actions — Standard Users and Authors cannot. And only Administrators can create hooks and tool access policies, because those controls govern what every other role can do. How it all fits together These controls layer: identity sets the boundary, run mode sets the default posture, tool controls set the envelope, policies set the rules, and hooks handle the judgement calls. They’re not restrictions — they’re what lets you say yes to progressively more autonomy, with evidence that each step is safe. A useful mental model: governance isn’t a gate you pass through once. It’s the dial you turn up gradually, scenario by scenario, as each one proves itself. The agent that’s fully autonomous for certificate renewals and fully gated for database changes isn’t half-governed — it’s precisely governed. Step 6: Promote to production — your agent configuration is code This is the step that turns your dev agent into a repeatable, auditable production system. Your dev agent is your workshop — the place where you experiment, teach, build artifacts, and iterate until things work. Once they do, the configuration you’ve built there becomes your golden state: the skills, custom agents, tool definitions, knowledge base, response plans, scheduled tasks, and memory that together define how this agent operates. All of it can be declared, versioned, and deployed programmatically: Infrastructure as Code — define agents and their configuration in Bicep or Terraform, same as any other Azure resource. Your agent’s entire shape lives in a template. CLI and REST API — create, update, and configure agents with az commands or direct API calls. Useful for CI/CD pipelines that promote artifacts from dev to prod as part of a normal release. Artifact repositories — skills, custom agents, and tool definitions are files in your repo. Push them to your production agent the same way you push code: through a pipeline, with review, with rollback. This means everything your dev agent learned can flow to production through your existing change process. A new skill gets built and tested in dev, reviewed in a PR, merged, and deployed to the production agent by the pipeline — no portal clicking, no manual replication, no drift. It also means consistency across a fleet. If you run multiple agents — per module, per region, per environment — they can all be powered from the same artifact repository. Update the skill once, deploy it everywhere. The agent-per-module pattern from Step 1 works precisely because IaC makes it cheap to keep them consistent. And when something goes wrong, you roll back the same way you roll back anything else: revert the commit, redeploy the template, and the agent is back to its last known-good state. Step 7: Wire it up — an artifact does nothing until something calls it A skill sitting in your repository doesn’t do anything until it’s bound to a trigger — something in your world that fires it without a human deciding to. It’s an easy step to skip, and worth not skipping. There are three you’ll use constantly: Incident response plans. Attach the artifact to an alert class, so that when that alert fires, that skill runs. This is the single highest-value wiring you can do. Scheduled tasks. For work that should happen on a rhythm rather than in response to a signal — the nightly sweep, the weekly review, the monthly audit. HTTP triggers. For everything else in your ecosystem that wants to start agent work: a pipeline stage, a webhook, a work item transitioning to Ready. Here’s why this matters more than it looks. Remember the climb — Crawl, Walk, Run, Fly. Teams often assume they’ll graduate by making the agent smarter. They won’t. A brilliantly capable agent that only ever runs when someone opens a chat window is still at Walk, permanently, because a human is still initiating every piece of work. Capability doesn’t promote you. Triggers do. Wiring is the actual line between Walk and Run. Cross it deliberately. Step 8: Mimic your production process Here’s the step that turns a clever assistant into an operations teammate: the agent should follow the process your humans already follow. Not a parallel workflow. The workflow. An incident arrives → the agent acknowledges it, so everyone can see it’s owned → it investigates, pulling telemetry, correlating recent deploys, checking dependencies → it posts its findings to the incident, where the on-call already lives → it proposes or applies the mitigation → it updates status → it documents the root cause → it resolves. That’s end-to-end incident investigation and remediation, in the same lifecycle, the same ticket, the same channel your team already watches. No new tool to learn. The on-call engineer just notices the work is already done. And this covers more ground than people expect. Most teams think of incidents in three flavours: outages, where something is down; performance issues, where something is slow or degrading; and manual errors — the config change somebody made by hand at the end of a long day, the setting that got flipped in the portal and never made it back into source control. That third category is the one teams under-count and the one agents are unusually good at, because catching it is mostly a matter of comparing what’s running against what was declared — patient, unglamorous work that nobody wants to do at 2am. A worked example. The Zava learning lab agent runs exactly this loop — incident-triggered investigation and remediation across a live estate. Looking at its real runs: a typical end-to-end run takes about 32 tool calls and lands in a 5-to-12-minute band, with a median around 8.6 minutes from signal to finished work. Roughly five minutes to a mitigation, ten to a full resolution. Compare that with what it replaces: a page, someone waking up, ten minutes to orient, a scramble across dashboards, a colleague pulled in for a second opinion. Ninety minutes and two engineers, on a good night. A second example, from the other end of the lifecycle. A large software vendor running a multi-region estate — dozens of subscriptions, tens of thousands of resources — wired their agents into delivery rather than just incidents. A work item moves to Ready, and that’s the trigger. A custom agent picks it up, writes the code, opens the pull request, deploys the change to a test environment, and runs the validation suite against it — synthetic checks and browser-driven tests, the same ones a human would have run. Then it posts the result on the original work item. The engineer’s first involvement is reading an outcome that already has evidence attached. Same five design considerations from Step 1 govern their fleet: one agent per product module, explicit prod and test agents, and one extra agent in-region purely for data residency. These two examples bookend the same idea. One agent closes incidents; the other closes work items. Both were built the same way — context first, artifacts second, triggers third. Beyond incidents — the agent as a proactive partner It’s easy to think of agents as incident responders, because that’s where the value is most visible. But the best teams use them just as heavily when nothing is broken. Understand your system better. Ask the agent to explain your architecture back to you. Ask it what depends on what. Ask it to map the blast radius of a change you haven’t made yet. Ask it to find every resource in your estate that hasn’t been touched in six months, or every configuration that drifts from what’s declared in code. These aren’t investigations — they’re conversations. And the answers come grounded in your actual telemetry and source code, not a wiki page that was last updated in 2023. Get recommendations you didn’t ask for. Set up a scheduled task that reviews your infrastructure weekly and surfaces opportunities: resources that could be right-sized, SKUs that could be downgraded, replicas that could be consolidated, regions where you’re paying for redundancy you’re not using. The same task can check for reliability gaps: services without health probes configured, storage accounts without soft-delete enabled, deployments running without a rollback path. The agent sees all of it because it already has the context — it just needs a reason to look. Run proactive reliability reviews. Ask the agent to evaluate your service against the Azure Well-Architected Framework, or against your own best practices checklist. Ask it to compare your production configuration against your staging configuration and tell you what’s different — and whether the difference is intentional. Ask it to trace a customer-facing flow end to end and identify the single points of failure. Shift from reactive to preventive. This is the compounding value of the platform. Every incident the agent resolves teaches it something about your system. Over time, the agent that started as an incident responder becomes the thing that prevents incidents — because it’s seen enough of your system to spot the preconditions before they become symptoms. The cost analysis that catches the runaway resource before finance does. The capacity check that raises the quota before the 429s start. The configuration audit that catches the drift before it becomes an outage. The agent that only responds to incidents is useful. The agent that also prevents them is transformative. Part Two — Running it well Two loops, not one queue Once agents are working real incidents, the question stops being can it and becomes which ones. Make that a routing decision rather than a judgement call. Run two loops: an agent loop and a human loop. Every incident class is registered to one of them, so where an incident lands is a property of the class, decided in advance — not something someone works out at 3am. Promotion between loops is deliberate. Moving a class into the agent loop is a reviewable change with a written gate, and a written demotion trigger for when it stops earning its place. The safety net belongs to the incident system, not the agent. Define the conditions your process cares about — not acknowledged within x minutes, not mitigated, not handed off — and let the incident system escalate to the human loop when they’re breached. An agent that has stalled can’t be relied on to report that it has stalled; something outside it has to notice. And escalation should carry the work with it, so the human arrives to evidence already gathered rather than a blank page. Cost: know what an outcome costs One of the quietly wonderful things about agentic operations is that you can finally price an outcome. Agents consume metered units, and every unit maps to work. So instead of “what does our on-call cost?” — a question nobody has ever answered honestly — you get: this incident, end to end, cost this much. For the loop above: an entire incident investigated, mitigated, documented and resolved, in minutes, for under $30. Now price the alternative. Two engineers, ninety minutes, out of hours, plus the context-switch tax on whatever they were doing, plus the meeting the next morning to explain what happened. You’re comparing tens of dollars against hundreds — and that’s before you count the ninety minutes of customer impact that didn’t happen because the fix landed in eight minutes instead of an hour and a half. Multiply by your monthly incident volume and it stops being a cost conversation and starts being a capacity one. The question isn’t “can we afford this?” — it’s “what do we do with the engineering time we just got back?” But be careful not to measure the return only in money and minutes, because the larger part of it never shows up on an invoice. It’s the engineer who slept through the night. It’s the on-call rotation people stop quietly dreading, and the weekend that stayed a weekend. It’s the postmortem that never had to be written — and with it, the whole uncomfortable ritual of working out whose change it was — because the problem was caught and fixed while it was still one degraded instance rather than a customer-visible outage. Teams feel that long before finance notices the bill. Morale has always been a reliability metric; it just never had a dashboard. A few practical habits: - Set a consumption budget deliberately, and know who can raise it and how fast before you need them. - Watch cost per resolved outcome, not total spend. Total spend rising while cost-per-outcome falls is exactly what success looks like. - Use the right trigger for the job. Incident response plans and HTTP triggers bring the work to the agent the instant it matters. Scheduled tasks handle the work that belongs on a rhythm — the nightly sweep, the weekly review. Both have a place; the key is matching each scenario to the trigger that fits it. Live Reports — the UI beyond chat Most people first encounter their agent in a chat window, and chat is genuinely good for investigation and conversation. But it’s not the only surface — and for a lot of operational work, it’s not the best one. Live Reports are interactive HTML applications built by the agent and hosted on the platform. They call the same tools the agent uses — Kusto queries, Azure CLI, incident APIs, connector tools — and render the results as charts, tables, grids, and interactive controls. They’re not screenshots of a past conversation. They’re live applications that re-fetch data every time you open them. Here’s the part worth understanding from a cost perspective: the agent spends tokens when it builds the report — the conversation where you describe what you want. After that, opening the report calls the tools directly. No LLM is involved, so there’s no ongoing token consumption. Build it once, open it a hundred times, share it with your team — the investment is in the creation, and it pays off every time someone opens it. Think of Live Reports as the place where your agent’s intelligence becomes a permanent, shareable surface rather than a conversation that scrolls away. Scenarios where Live Reports shine: Morning triage view. What happened overnight? Which incidents are open, which were resolved autonomously, which need human attention? A single page your on-call opens at the start of every shift — always current, no queries to run. Agent fleet health. Across all your agents: which are healthy, which have degraded tool reliability, which haven’t run in a week? Per-tool success rates, outcome counts, cost-per-resolution trending. The monitoring dashboard you’d otherwise build in Grafana, except it’s already wired to the data. Governance and compliance. NSG audit results, CVE exposure by service, resource compliance against your policy baseline. The report that used to take two engineers a day to compile — now it’s a page that’s always current. Cost analysis. Per-agent spend, per-outcome cost, consumption trending with visual charts. The data that makes the cost conversation in Part Two actually work. On-call handover. A shift handoff report: what happened during this rotation, what’s still pending, what to watch. Built once, regenerated for every handover. Stakeholder status pages. Service health for leadership or customers — uptime, incident summary, SLA adherence — without exposing the underlying tools or conversations. Interactive explorers. Not just viewing data but acting on it. A compliance report where you can drill into a finding and ask the agent to open a remediation PR, right from the report surface. The pattern is the same every time: you tell the agent what you want to see, it builds the report, and from that point forward the report is a zero-cost, always-current application that anyone on your team can open. It’s the agent’s intelligence crystallised into a surface that doesn’t need the agent to be running. Monitor the agent You’ll want a few different lenses, because each sees something the others can’t: Layer What it gives you Live reports Your measurement dashboard — autonomy by scenario, throughput, tool reliability — refreshed from your own connectors every time you open it Scheduled tasks The agent reporting on itself: a weekly health narrative, and the loops that keep artifacts current Your own observability platform Independent health and reliability monitoring outside the agent — the layer that still works when the agent doesn’t Foundry Control Plane Auto-discovers your SRE agents across the subscription: status, error rate, run counts, plus start/stop/block lifecycle control, governed by normal Azure RBAC Agent 365 Organisation-wide registry, governance and security posture across every agent platform you run. Agent 365 is generally available; SRE Agent integration into it is on the roadmap One field-tested tip: track tool failure rate per tool, not in aggregate. The overall success rate in large estates typically sits above 98%, which is reassuring — but it can mask a single connector that needs a configuration fix. Watching each tool individually lets you catch those early, and the fix is usually straightforward: a stale token, a permission gap, a connector that needs reconnecting. Knowledge, evals and learning — insist on these Context isn’t a one-time setup. It’s a living asset, and it’s the thing that compounds — but only if your platform is built to let it. This is the section where what you’re running starts to matter a great deal, so it’s worth being direct about what to demand. Insist on an agent that learns without being told to. The common failure mode of agentic tooling is that all the good material stays in the chat thread. Someone works a hard problem with the agent at midnight, finally cracks it, and the reasoning evaporates when the tab closes. What you want instead is derived learning: the agent distils what it just worked out — the query that got there, the dead end worth avoiding, the service that behaves nothing like its documentation — and files it as durable, structured knowledge on its own, without anyone remembering to write it down. Azure SRE Agent does this automatically. Every investigation deposits something. What still needs your attention is the round trip to the original source of truth. Derived learning lives with the agent. Your runbook, your architecture note, your alert definition lives in your repository — and that’s the copy your humans read. Wire the automation that pushes a learning back into the original artifact as a pull request, so the knowledge doesn’t quietly fork into two versions. This is the single most valuable piece of plumbing most teams haven’t built yet. Insist on evals that run forever, not once. Evals get widely misread as a pre-production gate: test the skill, it passes, it ships, done. That’s the smaller half of the value. The bigger half is relentless — continuously evaluating the agent’s real runs in production. Did it stay in scope? Did it reach the right conclusion? Did it stop and ask when it should have? Did that skill quietly start failing at step four last Tuesday? Real traffic finds things no test suite will, and it finds them on your actual estate rather than on a fixture. Then close the loop, so eval results become work rather than a report nobody opens. Azure SRE Agent ships this as a first-class loop: scheduled tasks that watch the eval signal, notice the degradation, and act on it. Self-improvement — where it gets fun Which is where something rather lovely happens: the agent starts improving itself. It notices a runbook is out of date and updates it. It sees a skill failing at the same step and rewrites that step. It spots a recurring investigation and proposes a new custom agent to own it. It watches its own eval scores and opens a pull request against the artifact that slipped. Teams run learning-loop agents alongside their fleets, and watchdog agents that review other agents’ work. Every completed task should make the next task easier. That’s the flywheel — and it only turns when all three pieces are present: knowledge that accumulates by itself, evals that keep scoring real work, and automation wired to act on both. Put them together and the system stops being something you maintain and starts being something that maintains itself. Part Three — The Zero Ops journey: the art of the possible Now the fun part. Here’s what each rung actually feels like, across the scenarios teams really run. Crawl — the agent suggests, you do the work You’ve connected context and you’re asking questions. It’s already useful: “Which of these 40 alerts overnight actually mattered?” — and it tells you, with reasoning. At this rung the governance sweep produces its first report: here are your idle resources, here are the network rules that don’t match policy, here are the CVEs you’re exposed to. Just a list — but it’s a list nobody had time to produce before, and it took four minutes. The certificate scan tells you what expires in the next 90 days. The cost analysis names your top ten spenders and why they moved. The change reviewer reads an incoming change request and tells you, in plain language, what it actually touches and what depends on it — the blast-radius analysis somebody used to do by hand in a change advisory board meeting. You still do all the work. But for the first time, you can see everything. Walk — the agent does the work, one step at a time Now it acts, asking before each step. This is where investigation and root-cause analysis come alive. An alert fires and the agent has already pulled the telemetry, correlated the recent deployment, checked the dependency, and posted a probable cause on the incident — before the on-call has finished reading the title. The question responder starts answering “is the EU region healthy?” in your team channel, with evidence. The governance sweep grows a spine: it doesn’t just list the orphaned resources, it recommends what to do about each. The CVE report becomes a prioritised remediation plan. The change reviewer stops describing the change and starts drafting it — the implementation plan, the validation steps, and the rollback procedure, written before anyone approves anything. You approve every step. It feels slow. It is also where you discover exactly what your agent is good at — and every gap you find becomes tomorrow’s artifact. Run — the agent completes whole tasks; you review the change Triggers are wired now — incidents, webhooks, schedules — and work starts without you. This is the rung where the 3am page stops arriving. The alert-class handler takes a whole class end to end: fires on arrival, investigates, applies the safe mitigation — restart, scale up, roll back the release — documents it, resolves it. You read about it in the morning. This is the rung where the word self-healing finally earns its place. It’s worth being precise about what it means, because it’s a phrase that gets stretched: self-healing is when the agent detects a known failure class, decides on the response, and acts on it within bounds you pre-approved. Not “the agent does whatever it thinks best.” The class is chosen by you. The safe actions are enumerated by you. The agent’s contribution is that it does the work at 3am, correctly, without waking anyone — and tells you exactly what it did. And notice that this is granted per alert class, never per service. It’s completely normal for one fleet to run some classes at near-total autonomy while other classes sit at a deliberate zero, because nobody’s ready yet. That’s not inconsistency. That’s the control working. The capacity agent sees the quota curve heading for a wall and raises it before anything breaks. The certificate agent opens the renewal PR on schedule. The maintenance agent handles the planned work that used to eat somebody’s weekend — the scheduled patching round, the index rebuild, the node pool rotation — running it in the window, verifying it landed, and reporting on it. The change agent executes the approved change in non-production, validates it, and raises the pull request and the change record together. The governance sweep stops recommending and starts acting — opening pull requests against your infrastructure-as-code to close the findings it used to just report. The CVE backlog that only ever grew? It starts going down, because something is working it every single day. And the work-item loop appears: a backlog item goes in, a custom agent writes the code and opens a pull request. You review the diff. Which is exactly when you meet the review wall. Fly — the agent proves the outcome, and improves the system Fly is not “the agent can execute.” It’s two much better things. Fly, part one: the agent can prove the outcome is correct. It builds the fix. It deploys it to a test environment. It runs the validation itself — synthetic checks, browser tests, the full suite. Then it posts the evidence. You stop reviewing the diff and start reviewing the outcome. That’s how the wall comes down. Now the work-item loop closes completely: backlog item → code → deploy → tested → evidence posted. The release-safety agent doesn’t just roll back after an incident, it gates the deploy beforehand — validating in test and blocking the bad one. The governance sweep pushes its own fix to production, having proven in test that it works. And your standard changes — the well-understood, pre-approved, thousand-times-executed ones — get carried out in production end to end, validated, and the change record closed with the evidence attached. The change advisory board stops reviewing procedure and starts reviewing outcomes, which is what it always wanted to be doing. Fly, part two: the agent improves the system. It learns from every incident. It improves knowledge, artifacts, runbooks, skills — and its own custom agents. The alert-quality loop turns inward: it notices which of your alerts are chronic false positives and opens PRs to fix the alert rules themselves. Your monitoring gets better while you sleep. The system gets better without a human editing it. And back to where we started That 3am page? A whole class of them doesn’t reach a person anymore. The fortnight-long cost review? A standing job that finds the waste and opens the PR. The zero-day marathon? The agent maps exposure across every service in minutes, patches in test, proves it works, and hands you evidence. The CVE backlog that only grew? Something works it every day, and it shrinks. That’s Zero Ops. Not zero humans — zero operations for humans. Your people set intent, govern the system, and validate outcomes. Everything below that line takes care of itself. The proof We run Microsoft this way. Every number here is queryable — these aren’t product metrics, they’re trust metrics. Today: - 2,500+ Microsoft engineering teams - 5,400+ agents running in production - Median time from alert to mitigation: 4 minutes To date: - 1.47M incidents processed - 221K mitigated autonomously - 1.25M enriched for the on-call engineer - ~1M developer hours saved* In the last month alone: - 480K incidents handled - 91K mitigated autonomously - 32M agent actions executed - 60K deploy-and-validate runs - 97.9% of agent work ran autonomously That last number is the one worth sitting with. Ninety-eight percent of the work happens with no human in the conversation — and the two percent that does reach a person is the two percent that genuinely needs judgement. In closing It isn’t about building a better agent. It’s about building a system that deserves autonomy. Context makes it intelligent. Governance makes it trustworthy. Metrics make it provable. When those three come together — agents operate, and humans govern. And the best news: you don’t have to build this from the ground up. Azure SRE Agent already carries these learnings — the context, the governance, the evidence, and the metrics — so your team can start today. Pick one scenario. Give it context. Teach it your system. Work a real problem with it, and turn what you learn into something that persists. Then do it again next week. Start your Zero Ops journey: aka.ms/sreagent · Resources and community: aka.ms/sreagent/links *AI-calculated estimate, based on a conservative earlier baseline.1.4KViews6likes0CommentsMicrosoft Foundry Now Has an AI Gateway Control Plane — What Changes for App Service
Microsoft Foundry can now create or associate an APIM-based AI Gateway. Here is what changes for App Service agents, what remains in APIM, and the v2-tier requirement that affects existing gateways.1.8KViews1like1CommentFrom AI Adoption to AI Governance - Using APIM as the Gateway for Azure AI Foundry
Co-authored by Gaurav Jain (Senior Cloud Solution Architect @ Microsoft) and Abhishek Mittal (Cloud Solution Architect @ Microsoft) Enterprises move through three phases of AI adoption: evaluating models, building apps and agents, and operationalizing them in production. The first two are easier to accelerate. The third is where governance becomes critical. Once multiple teams share an AI endpoint, leaders need clear answers to practical questions: which model consumed tokens, which team used them, and who is authorized to call it? This post shows how to place Azure API Management (APIM) in front of Azure AI Foundry as an AI Gateway, turning a shared endpoint into a governed control point for per-model token visibility, chargeback, and budget alerts — with no changes to client code. It also shows where Azure Front Door and Web Application Firewall (WAF) fit in a secure AI Landing Zone. The problem: AI adoption is outpacing AI governance A common starting point is an Azure OpenAI resource running multiple models. The team already has operational telemetry, but governance needs a different view: per-model token usage for chargeback, budget alerts, and capacity planning, captured in one place. Azure gives you rich resource-level telemetry out of the box, and that is exactly where we started: Azure Monitor — Metrics blade: shows token usage split by model and deployment in near real time. Diagnostic settings: stream the resource's metrics and request logs into Log Analytics (the AzureMetrics and AzureDiagnostics tables). Azure Monitor provides useful resource-level telemetry, including metrics and diagnostic logs. A governance view needs something different: model identity and token counts correlated in a single record, so teams can build a per-model, month-to-date ledger for chargeback and alerting. The AzureMetrics table carries the token totals, aggregated at the resource level. The AzureDiagnostics logs carry the model and deployment name at the request level. Each stream does its job well. Correlating them into one per-model, month-to-date ledger — and alerting on it — is a governance concern that sits above any single resource. Azure Monitor metric alerts, for instance, work on a rolling 24-hour window that maps cleanly onto a per-day token budget; a month-to-date, per-model chargeback ledger is simply a different shape of question — and a natural fit for a dedicated control point. This transition is the focus of this post: moving from AI adoption to AI governance by introducing a control point where model identity and token usage are captured together by design. The natural home for that control point is an AI gateway — and we build it next with Azure API Management in front of Azure AI Foundry. The pattern: APIM as the AI Gateway for Azure AI Foundry The AI gateway in Azure API Management is a set of capabilities to secure, scale, monitor, and govern the AI models, agents, and tools behind your apps. It isn't a separate product — it extends the existing API Management gateway. As Microsoft's guidance puts it, as AI adoption matures the gateway helps you authenticate and authorize access to AI services, load balance across endpoints, monitor and log AI interactions, and manage token usage and quotas across multiple applications. APIM becomes the governed front door for Azure AI Foundry. Clients continue calling an OpenAI-compatible endpoint; APIM authenticates to Foundry with a system-assigned managed identity, forwards the request, and emits per-model token telemetry to Azure Monitor and Application Insights. The result is per-model visibility without client-side changes. Models behind the gateway The gateway can front any model deployment in Azure AI Foundry — Azure OpenAI models, other Foundry models, or a mix — and the pattern is identical no matter which you run. For a concrete reference, the walkthrough in this post sits in front of two existing deployments: Deployment Model Provisioned capacity (TPM) gpt-4.1 gpt-4.1 500K gpt-5 gpt-5 50K Example deployments referenced throughout this post. Note the deliberate capacity gap — gpt-5 at 50K TPM versus 500K for gpt-4.1 — exactly the kind of asymmetry that makes per-model visibility a governance requirement, not a nice-to-have. Architecture Figure 1 — Architecture / component flow: consumers call one governed API; the inbound policy authenticates with a managed identity, resolves the model, and emits per-model token metrics to Azure Monitor and Application Insights. The starting point (“before”): a pass-through without a usage signal By default, APIM operates as a straightforward proxy. If you import a Foundry API and keep the default configuration, the policy simply selects the backend service: <policies> <inbound> <base /> <set-backend-service id="apim-generated-policy" backend-id="foundry-backend" /> </inbound> <backend><base /></backend> <outbound><base /></outbound> <on-error><base /></on-error> </policies> A plain pass-through API. It forwards traffic faithfully — it simply doesn't surface a usage signal yet. This is our “before.” Pass-through configuration works, but it does not distinguish traffic by model. All requests flow through the same stream, with no per-model chargeback signal, no capacity warning, and no clear view of which deployment is driving consumption. To govern the workload, the gateway must understand the traffic — not just relay it. The governed gateway (“after”): a policy that sees every token The custom inbound policy below is the heart of the pattern. It does four things in order: set-backend-service — select the Azure AI Foundry backend. authentication-managed-identity — obtain an Entra ID token for cognitiveservices.azure.com using the APIM system-assigned identity. No keys ever leave the gateway. set-variable deployment-id — resolve the model name from either the URL path or the request body (more on why below). azure-openai-emit-token-metric — emit prompt, completion, and total token counts to Azure Monitor, dimensioned by model. <policies> <inbound> <base /> <set-backend-service backend-id="foundry-backend" /> <authentication-managed-identity resource="https://cognitiveservices.azure.com" /> <!-- Resolve the model/deployment name. The Foundry Model Inference API (/models/chat/completions, /models/embeddings, /anthropic/v1/messages) passes it in the JSON body as "model". The Azure OpenAI-style surface (/openai/deployments/{name}/...) passes it in the URL path. Handle both. --> <set-variable name="deployment-id" value="@{ var path = context.Request.Url.Path ?? ""; var m = System.Text.RegularExpressions.Regex.Match(path, "/deployments/([^/?]+)"); if (m.Success) { return m.Groups[1].Value; } try { var body = context.Request.Body?.As<JObject>(preserveContent: true); var model = body?["model"]; if (model != null && !string.IsNullOrEmpty(model.ToString())) { return model.ToString(); } } catch (Exception) { } return "unknown"; }" /> <!-- Emit token-usage metrics dimensioned by model, so consumption can be sliced per model in Azure Monitor / Application Insights. --> <azure-openai-emit-token-metric namespace="genai-tokens"> <dimension name="ModelDeploymentName" value="@((string)context.Variables["deployment-id"])" /> <dimension name="ModelName" value="@((string)context.Variables["deployment-id"])" /> <dimension name="APIId" value="@(context.Api.Id)" /> <dimension name="Subscription" value="@(context.Subscription?.Id ?? "none")" /> <dimension name="Client IP" value="@(context.Request.IpAddress)" /> <dimension name="Product ID" value="@(context.Product?.Id ?? "none")" /> </azure-openai-emit-token-metric> </inbound> <backend> <base /> </backend> <outbound> <base /> </outbound> <on-error> <base /> </on-error> </policies> The full custom policy, applied at API scope. The highlighted value is the model-name resolution feeding a per-model token metric. Request flow, end to end Figure 2 traces a single chat request from top to bottom — from the caller, through the gateway's inbound policy, out to Azure AI Foundry, and into your telemetry. Figure 2 — Per-request flow: authentication, model resolution, forwarding, and token-metric emission. The request flow is straightforward: the client calls the APIM endpoint, the gateway selects the Foundry backend, authenticates with managed identity, resolves the model name, forwards the request, emits token metrics, and returns the response unchanged. Governance is added at the gateway without requiring client-side changes. Why dual-shape model resolution matters The azure-openai-emit-token-metric policy can emit usage, but it still needs a model dimension. Different API surfaces place the model name in different locations: Foundry Model Inference and Anthropic-style requests use the body, while Azure OpenAI-compatible calls use the URL path. The policy handles both shapes, so one gateway can govern all callers consistently. Observability: per-model token visibility and chargeback Metrics land in Azure Monitor / Application Insights under the namespace genai-tokens. The policy records Total Tokens, Prompt Tokens, and Completion Tokens, each tagged with Model Name, Model Deployment Name, API Id, APIM Product Subscription, Client IP, and Product ID. The data can then be queried directly. Per-model consumption over time: customMetrics | where name == "Total Tokens" | where timestamp >= startofmonth(now()) | extend ModelName = tostring(customDimensions["ModelName"]) | summarize TotalTokens = sum(valueSum), Calls = sum(valueCount) by ModelName Per-model token consumption (Application Insights customMetrics). And a per-model, per- API product subscription view for chargeback: customMetrics | where name == "Total Tokens" | where timestamp >= startofmonth(now()) | extend Model = tostring(customDimensions["ModelName"]), Sub = tostring(customDimensions["Subscription"]) | summarize Tokens = sum(value) by Model, Sub, name | order by Tokens desc Chargeback: tokens by model and consuming subscription. The gateway records model identity and token usage together, so the chargeback view is built in. The same signal supports dashboards, daily budget alerts, capacity planning, and cost allocation by subscription or product — without changing client code. Turning the signal into a Cost Guardrail: a 24-hour token alert Because the token totals now carry the model name, you can put a hard guardrail on spend. Wrap a query in an Azure Monitor log search alert rule that sums Total Tokens over the last 24 hours per model and returns only the deployments that breach a daily budget: // Rolling 24-hour token-budget guardrail — returns any model over its daily cap let dailyTokenBudget = 50000; // max Total Tokens per model in a rolling 24h window customMetrics | where name == "Total Tokens" | where timestamp > ago(24h) extend Model = tostring(customDimensions["ModelName"]) | summarize TokensLast24h = sum(value) by Model | where TokensLast24h > dailyTokenBudget | extend OverBudgetBy = TokensLast24h - dailyTokenBudget | project Model, TokensLast24h, DailyBudget = dailyTokenBudget, OverBudgetBy A rolling 24-hour token-budget check. The alert rule fires whenever this query returns one or more rows. Configure this as a scheduled log search alert: evaluate on a short cadence (for example, hourly over the trailing 24-hour window), set the alert logic to fire when the result count is greater than zero, and attach an action group that notifies the team through an email distribution list or Microsoft Teams channel. When any model crosses its rolling 24-hour token budget, the owning team is alerted, so overspend is detected within the day rather than at invoice time. Tune dailyTokenBudget per model, or add a single all-up cap, and translate token budgets into estimated daily cost ceilings to maintain continuous spend visibility. Completing the picture: securing the AI Landing Zone with Front Door + WAF APIM governs model usage; Azure Front Door with WAF governs public access. Placing WAF at the edge protects the AI endpoint from common web attacks, malicious bots, abusive callers, and unwanted source IP ranges before traffic reaches APIM or Foundry. What Front Door + WAF adds OWASP protection: The Azure-managed Microsoft_DefaultRuleSet_2.1 helps defend against OWASP Top 10 web attacks and known CVEs; Microsoft_BotManagerRuleSet_1.0 helps block malicious bots. Run the policy in prevention mode so offending requests are rejected with a 403, not just logged. IP restriction and rate limiting: Custom WAF rules restrict access to known IP ranges and throttle abusive callers before they reach APIM or Foundry. Global edge: Front Door terminates TLS at the edge and provides a single, DDoS-protected public entry point for the workload. Defense in depth across the landing zone Layered against the Azure AI Foundry landing zone baseline, the request path looks like this: Defense in depth: WAF at the edge, governance at the gateway, isolation on the network, Foundry reachable over a private endpoint. The baseline Azure AI Foundry landing zone reinforces every layer: private endpoints keep PaaS services (Foundry, Key Vault, Storage, AI Search) off the public internet; a system-assigned managed identity helps remove API keys; a hub-and-spoke topology routes egress through Azure Firewall; Azure Key Vault holds the Front Door TLS certificate; and Azure Policy enforces guardrails across the subscription. The gateway pattern from Sections 2–6 slots directly into this architecture as the governed control point for model traffic. Outcomes and what to extend next With APIM and the security edge in place, the shared endpoint supports per-model chargeback, capacity planning, zero client changes, and a stronger security baseline. The same gateway pattern can then be extended with token quotas, semantic caching, content safety, resiliency, and a unified model API (preview). Closing thoughts Moving from AI adoption to AI governance does not require re-architecting every app; it requires a control point. APIM in front of Azure AI Foundry provides that point: one policy turns token usage into a per-model governance signal, and Front Door with WAF provides a hardened edge. Start with visibility, then add quotas, safety, and resiliency as adoption scales. References AI gateway capabilities in Azure API Management — Microsoft Learn Baseline Microsoft Foundry Chat Reference Architecture in an Azure Landing Zone - Azure Architecture Center Protect Azure OpenAI using Azure Web Application Firewall on Azure Front Door — Microsoft Learn LLM token limit policy — Microsoft Learn Emit token consumption metrics (llm-emit-token-metric) — Microsoft Learn1.8KViews1like0CommentsHow to build long-running MCP tools on Azure Functions
Recently, a customer building servers with the Azure Functions MCP extension reached out and asked: How do I handle tools that take longer than the client is willing to wait? This becomes especially relevant when tool calls move beyond simple request/response into multi-step workflows and long-running operations. At the same time, MCP is evolving to address exactly this. The Tasks extension is introduced in the 2026-07-28 release candidate, defining a standard way to model long-running work. In this post, we’ll walk through how to build long-running MCP tools on Azure Functions using Durable Functions , a framework for authoring stateful, long-running workflows as ordinary code, with checkpointing, scaling, and recovery handled automatically. MCP tools today Today, MCP tools are fundamentally request/response: the client issues a tools/call the server returns a result This works well for fast operations, but breaks down when: workflows take minutes execution depends on multiple steps latency is unpredictable In practice, clients enforce their own tool-call timeouts. These aren't standardized by the MCP spec and vary per client, but they're often in the ~30–60 second range. If a tool exceeds that window: In practice, clients often enforce short timeouts. If a tool exceeds that window: the client times out the agent observes a failed call the underlying work may still be running So the core issue is that you have synchronous tool calls don’t naturally model long-running work. The MCP Tasks extension The Tasks extension to address this. With the extension, a server can respond to a tools/call with an asynchronous task handle instead of a final result, and the client drives the lifecycle from there: tasks/get: poll the task's status tasks/update: submit input back to the server if the task reaches input_required tasks/cancel: cancel an in-flight task A task carries a status ("working", "input_required", "completed", "failed", or "cancelled") and on completion, the final result. Task creation is server-directed: the client advertises support by including the extension in its per-request capabilities, and the server decides per request whether to return a task. A server won't return a task to a client that hasn't advertised support. It's important to note that Tasks rely on ecosystem support. Clients must advertise the extension, and MCP SDKs must implement the task lifecycle, before servers can use it. So while Tasks is now a defined extension, broad client and SDK support is still in progress. Implement long-runng tasks with Durable Functions today Until the Tasks extension is broadly supported across clients, we need a pattern that works with existing request/response clients and supports long-running execution. The following samples show how, using Durable Functions: Python NET The long-running work in this sample mines a short chain of blocks. Each block requires solving a computational puzzle where the system keeps trying different inputs until it finds one that produces a result matching a specific pattern (for example, starting with a certain number of zeros). Because this involves lots of trial and error, it naturally takes time, making it a good example of a long-running workflow. The server in the sample exposes two tools: start_mining Starts a Durable Functions orchestration to mine the blocks Waits briefly (within a configurable budget) Returns result inline if completed within budget OR returns workflow_id if still running get_mining_result Takes the workflow_id Returns the current state, e.g. "completed", "running", "failed", or "not_found" To ensure that the agent calls the tools in the right order, workflow_id is a required parameter of get_mining_result, so the agent can't poll without starting a mining run first. Also, the "running" response carries a poll_after_seconds and a next instruction, ensuring the agent to poll again if work is not done rather than give up or assume completion. Even so, the poll path still relies on the agent correctly remembering, and not hallucinating, the workflow_id it was handed. If it garbles or invents an id, the poll lands on the wrong instance or none at all (which is why get_mining_result returns "not_found" rather than guessing). What changes with the Tasks extension Once the Tasks extension is fully implemented across clients and SDKs, the model becomes simpler and more reliable: the server returns a Task handle, the client manages the polling and lifecyle calls, and the SDK tracks execution state. This removes a key limitation of today’s solution, which requires the agent to remember and correctly pass identifiers like workflow_id. Call to action Try out the sample and let us know whether it addresses your MCP needs around long-running or workflow type tools!638Views0likes0CommentsHow Many Copies of Each Layer Does Your Container Registry Actually Need?
Authors: Payal Mahesh and Vicky Lin Azure Container Registry team: Jeanine Burke and Johnson Shi Introduction It's Monday morning. You spin up a fresh 1,000-node AKS cluster for a big training run or a fleet-wide rollout. Every node reaches for the same large container image at the same instant. What actually happens in the next ten minutes - and whether your pods reach Ready in 9 minutes or 14 - turns out to depend on a single number you've probably never thought about: how many copies of each image layer exist behind your registry. At the surface, you see a single capacity number for your registry size - but behind that abstraction, Azure Container Registry maintains copies of your layer data to optimize pull performance. That number of copies directly determines the read throughput available per layer. Each copy can serve requests independently, so distributing the layer across storage allows it to be read in parallel. More copies mean more independent readers - and higher aggregate throughput when thousands of nodes pull at once. The intuitive answer is that more is better: add copies, get faster pulls. When we actually tested it at 1,000-node scale, the truth turned out to be more interesting: A few extra copies helped a little. A moderate number helped a lot, and eliminated storage throttling entirely. A large number helped no more than the moderate one. A huge number actually made pulls slower again. Think of it like opening checkout lanes at a grocery store. Opening a few more lanes when the store is slammed cuts the line dramatically. Past a certain point, though, extra lanes barely help, because by then it's the customers, not the cashiers, who are the bottleneck. And open too many? Now the staff is spread thin and tripping over each other, and the line moves worse than it did at the sweet spot. This post walks through what we measured, why the curve bends where it does, and what we're building next so finding that sweet spot isn't something anyone has to do by hand. Key Takeaways There's a sweet spot, not a slope. Adding copies per layer cut pod-startup P99 by 27% and raised P50 per-node egress throughput by 244%, but only up to a point. Past that, the returns vanish, and far past it, latency actually regresses. Storage throttling is the real enemy. The win comes from spreading load across enough storage backends that no single backend gets pinned at its egress ceiling. Once throttling is gone, more copies stop helping. Storage scale alone has a ceiling. Even at the sweet spot, the per-backend egress limit caps total throughput. The next jump in performance has to come from somewhere else, which is exactly what we're building (see What's Next). This isn't something customers should need to manage. We're building a proactive, on-demand storage scaling capability that automatically grows the footprint before throttling happens and shrinks it back when the burst is over. A quick bit of background Within a region, the layer data behind your container images is backed by Azure storage. The number of copies ACR maintains per layer determines how many independent storage backends a concurrent-pull workload can spread its reads across. That's what matters, because each backend has a finite egress ceiling. Once concurrent reads against one backend get close to that ceiling, requests start getting throttled, and your pulls slow down in proportion. The principle is simple: more copies per layer means more backends serving the same data, which means more total egress headroom and fewer throttled requests. What we wanted data on was how many, and where it stops helping. How we tested We ran a controlled series of large-scale pull tests against ACR Premium on a roughly 1,000-node cluster, with every node pulling the same large image cold at the same time (no local cache on any node). The only thing we changed between runs was the number of per-layer copies behind a single registry endpoint. Everything else, including rate limits, the image, node count, and concurrency, stayed constant. For each run we measured pod-startup latency (P50/P90/P99), end-to-end storage read latency, egress throughput distributions (P50-P99.9), and storage throttling events. Pod-startup latency is our headline metric, because it's the one number that reflects the actual customer experience no matter where the bottleneck happens to be. Per-node egress throughput matters too, though. It tells you directly how much pull bandwidth ACR delivers to your fleet, and it's usually what customers have in mind when they ask how much faster extra copies will make their pulls. We report egress as a distribution rather than a single average, since per-request and per-time-window views can tell very different stories about the same set of pulls. These are observations from a single controlled environment, not a service guarantee. Absolute numbers will move with image size, node count, layer composition, network topology, and concurrency. What we found We tested five configurations, sweeping from a low baseline number of per-layer copies up to a very high one. We name them by relative copy count rather than exact instance counts: Baseline: the lowest level, our reference point. Low: a modest step up from Baseline. Mid: a meaningful step up from Low. Higher: a further step up from Mid. Very high: the largest configuration we tested, well above Higher. Here are the numbers. All percent changes are relative to Baseline. Configuration Pod startup P50 Pod startup P90 Pod startup P99 Storage throttling events Peak per-backend egress Baseline (fewest copies) 9m 36s 11m 0s 14m 16s Many; all top backends above the egress ceiling Highest Low 9m 27s (−2%) 10m 14s (−7%) 12m 59s (−9%) Some; one backend still above the ceiling High Mid 9m 25s (−2%) 9m 45s (−11%) 10m 22s (−27%) Zero Below the ceiling Higher 9m 20s (−3%) 9m 37s (−13%) 10m 22s (−27%) Zero Well below the ceiling Very high 9m 28s (−1%) 10m 31s (−4%) 13m 48s (−3%) Zero Lowest Look at the P99 pod-startup column from top to bottom: 14m 16s, 12m 59s, 10m 22s, 10m 22s, 13m 48s. It improves, flattens out, then climbs back up. Three things explain that shape: 1. The win: Throttling falls off a cliff at the Mid configuration As we added copies per layer, per-backend egress fell and storage-side throttling decreased. At the Mid configuration, throttling errors hit zero, and they stayed at zero for every configuration above it. The upside isn't just that the errors went away, though. It's raw pull bandwidth. At the Mid sweet spot, the typical node saw its P50 egress throughput jump 244% over Baseline. With load spread across enough copies, each node pulled its layers off storage much faster, not just without stalling. For a workload owner, that's the difference between watching pods come up in a steady stream and watching them stall for tens of seconds at a time while throttling clears. Same image, same node count, same registry, very different experience. To put it in concrete terms: if your team runs a daily AI training kickoff that needs all 1,000 nodes pulling before the job can start, this is the difference between starting on time and starting four minutes late every day. Over a quarter of training runs, that adds up. 2. The surprise: more copies made pulls slower This is the finding that genuinely surprised us. Going from Higher to Very high, the largest configuration we tested, cost us 3 minutes and 26 seconds at P99: 10m 22s climbing back up to 13m 48s. That gave back almost the entire benefit we'd built up over the previous four configurations. Tail storage-read latency at Very high actually came out worse than Baseline. The Very high run is where the wheels came off, and the reason is the trade-off underneath. Once storage throttling is gone, more copies stop buying you anything, and the cost of fanning reads across that many backends starts to take over. The throughput distribution shows it clearly. P50 and P75 throughput had been climbing steadily and getting smoother through Mid and Higher, then dropped sharply at Very high while the peak P99/P99.9 spikes came back. Spread the same load across too many backends and it fragments into smaller, less consistent bursts. The takeaway is that "more is better" stops being true past the sweet spot, and the failure mode is quiet. You won't see throttling errors. You'll just see your pulls get slower. 3. What we didn't expect: at few copies, the hottest backend is what hurts you At the lowest copy counts, pull traffic wasn't spread evenly across the underlying storage footprint. Some backends absorbed far more traffic than others. As we added copies, that distribution evened out and the hottest backends cooled down. The implication is sharp. You can saturate the busiest backend, and trigger throttling, even when the total headroom across all your backends is large in aggregate. What matters is the load on the hottest backend, not the average. That's exactly the failure mode that demand-driven, proactive scaling (described below) is meant to head off before it happens. So how should you think about this? You don't size copies yourself; ACR manages the storage footprint behind your registry. Still, it helps to understand what moves the sweet spot, because the shape of your own workload is what decides where it lands. The bigger your worst-case concurrent burst (more nodes, larger images, higher concurrency), the more copies per layer it takes to keep pulls off the throttling ceiling, and the further out the sweet spot sits. Smaller workloads may already be sitting on the flat part of the curve. One thing is worth saying plainly. The storage footprint underneath is managed by ACR and shared across many registries, so there's no fixed, private storage budget that maps one-to-one to your workload. The sweet spot isn't a number you compute and provision; it's a behavior the platform has to land on for you, which is exactly why we're moving toward demand-driven scaling that handles it automatically. That's what brings us to what we're building next. What's next: proactive, on-demand storage scaling and a caching layer The fixed-copy tests above answer the question "how many should the ACR system provision?" but they assume a single, static answer. Real workloads aren't static. A 1,000-node burst happens at deploy time, not at 3 a.m. on a Tuesday. And no matter how many copies are provisioned, the per-backend storage ceiling still bounds peak deliverable throughput. So we're investing along two complementary directions. 1. Proactive, demand-driven storage scaling We're building a capability that adjusts the number of per-layer copies automatically based on real-time pull demand: Proactive, not reactive. The system scales the storage footprint before concurrent pull pressure pushes any single backend near the throttling threshold, so throttling is prevented before it forms rather than cleaned up after the fact. On-demand scale-out. The footprint expands automatically as sustained pull demand grows. Scale-in when demand subsides. The footprint contracts so you're not paying for steady-state capacity you only needed during a burst. Tiering for cold content. Long-tail, rarely-pulled content can sit on colder storage, so the redundant footprint of frequently-pulled content doesn't pay full hot-storage cost everywhere. The benefit to customers is straightforward: smoother pulls under burst, higher delivered throughput on average, no permanent over-provisioning, and no manual re-tuning as workloads grow. 2. A caching layer to absorb burst beyond the storage ceiling Even a perfectly scaled storage footprint runs into the per-backend egress ceiling at extreme scale. To push past it, we're investing in a caching layer in the registry service that absorbs burst traffic before it ever reaches storage. A pull surge that hits the same set of layers, which is the common case for fleet-wide deployments, can be served largely from cache. That takes a lot of load off any single storage backend and complements the storage scaling above. We'll share results from this work in follow-up posts. If you have questions about scaling ACR for your workload, or about how we measure storage performance, reach out on the Azure Container Registry GitHub repository. Note: All results in this post are based on controlled internal testing configurations and are intended to illustrate general scaling behavior rather than prescribe exact configurations.280Views0likes0CommentsVNet integration for Azure SRE Agent (preview)
For many production systems, the logs, databases, private endpoints, repositories, and runbooks an SRE Agent needs to do its job are behind network boundaries your security team already governs. VNet integration for Azure SRE Agent, now in preview, puts the agent's outbound traffic under those same controls - your virtual network, your NSG rules, your private DNS - so it reaches only what your network allows. The principle is one your security team already applies to every other workload: a component's network access shouldn't depend on the component behaving correctly. Identity governs what the agent can reach. Permissions and hooks shape what it does within reach. The network sits beneath both: it blocks any request to a destination you haven't allowed no matter what the agent decides. Why egress control matters Two reasons. First, the agent reads sensitive things by design. Inspecting logs, code, configuration, and internal systems is the whole point during an incident, which means you have to decide where that data can go. Open egress gives that data a path out of your network - a risk you wouldn't accept for any other production-adjacent workload. Second, it reasons over text it didn't write - logs, issue descriptions, tool output — which is how prompt injection gets in. Handling that is partly model safety, and Azure SRE Agent runs under Microsoft's Responsible AI standard with safety work from OpenAI and Anthropic. Network controls add another layer: an instruction that tries to reach a destination you haven't allowed can't run, because the network blocks it. For example, an agent investigating an outage might query Log Analytics, read deployment configuration, and call an internal runbook - all private resources. With VNet integration, those calls follow the routes, DNS, and firewall rules your workloads already use. A request to an external endpoint you haven't allowed fails at the network boundary. It doesn't depend on the model recognizing the risk and refusing; the network stops it either way. Choose an egress mode Azure SRE Agent has three egress modes, and you don't have to start at the strongest. Unrestricted - all outbound traffic allowed Limited - deny all outbound, allow an explicit list of hosts. Gives you host-level control without setting up a full VNet Azure VNet - outbound traffic goes through a delegated subnet in your network, with your NSG rules and private DNS applied. The recommended mode for production and regulated workloads. How Azure VNet mode works Outbound traffic takes one of two paths, and every call takes exactly one. Your VNet. Everything not placed on the managed path goes through a delegated subnet in your own network, where your NSG rules, private DNS, and firewall all apply. The agent is just another workload on that subnet, so it can reach what the subnet can reach: databases behind private endpoints, internal services, monitoring stores, and key vaults -the parts of production that aren't reachable from the public internet. The resources that matter most during an incident are usually the private ones. If your network connects to on-premises over ExpressRoute or VPN, the agent can reach those systems too, as long as your existing routes and rules allow it. The managed infra path. Some destinations go through Azure SRE Agent's managed infrastructure network instead - platform services the agent needs, plus optional categories you turn on: package registries, code repositories, and remote MCP servers. This path skips your VNet, so your NSG rules and Firewall Policies don't apply to it. Treat it as a deliberate exception, used only where you need it. Why public services start on the managed path Public services are hard to allow by IP address. GitHub, PyPI, npm, NuGet, apt, and the container registries run on large, changing IP ranges, and they don't map to a single Azure service tag. If your NSG filters by IP and port, keeping those lists up to date is constant work, and when a list falls behind, the agent can't pull a package or read a repository - and an investigation stalls on a networking problem that has nothing to do with the incident. Each category has a toggle: package registries (PyPI, npm, NuGet, apt), code repositories (GitHub, GitHub Enterprise, Azure DevOps), remote MCP servers, and a list of additional hostnames. Starting with these on the managed path keeps the agent working reliably without maintaining an IP allowlist. For build-time dependencies, that's usually fine. If you want this traffic inspected too, the next step is name-based (FQDN) egress filtering in your own network. Once your firewall can allow github.com and pypi.org by name, you can move these categories off the managed path and route them through your VNet instead Configure it Two decisions: the subnet, and what (if anything) uses the bypass. Navigate to Settings > Workspace Configuration > Network Choose Azure VNet as the egress mode. Select a subnet that is /27 or larger and delegated to `Microsoft.App/environments`. Decide which categories, if any, use the bypass. Restrict who can change the egress mode and bypass toggles. These settings widen or narrow the agent's reach, so govern them like any production network control. Test the outbound behavior before using the agent with production data. A reasonable setup for most enterprises during preview: use Azure VNet mode, keep package registries and code repositories on the bypass if you need reliable access to them, and route everything else through your VNet. Stricter environments can turn those categories off and rely on their own name-based firewall rules. What it doesn't cover yet VNet integration is in preview, with two limitations to know. It covers outbound traffic only - reaching the agent privately from inside your network isn't part of this preview. And connector traffic still routes over the public internet; the governance and credential isolation in Connectors V2 still apply. Use VNet integration for outbound control of the agent workspace, and combine it with identity, RBAC, tool permissions, hooks, and connector governance for a complete set of controls. Where it fits VNet integration doesn't replace identity, RBAC, tool permissions, or connector governance. It controls where traffic can go. The agent still needs the right identity and permissions to access a resource in the first place. Identity is the foundation: your RBAC assignments decide what the agent can reach. Permissions and hooks shape what it does within reach: allow/ask/deny rules control what runs, and hooks let you inspect or change a tool call before it runs. VNet integration sits underneath, controlling where traffic can go no matter what the agent tries to do. You want the agent to be capable. You also want a boundary that holds whether or not it is. Get started Create an SRE Agent - https://aka.ms/sreagent Documentation - https://aka.ms/sreagent/newdocs Recipes - https://aka.ms/sreagent/recipes Build 2026 Announcement - https://aka.ms/Build26/blog/SREAgent1.3KViews1like0Comments