Proactive Health Monitoring and Auto-Communication Now Available for Azure Container Registry
Today, we're introducing Azure Container Registry's (ACR) latest service health enhancement: automated auto-communication through Azure Service Health alerts. When ACR detects degradation in critical operations—authentication, image push, and pull—your teams are now proactively notified through Azure Service Health, delivering better transparency and faster communication without waiting for manual incident reporting. For platform teams, SRE organizations, and enterprises with strict SLA requirements, this means container registry health events are now communicated automatically and integrated into your existing incident management and observability workflows. Background: Why Registry Availability Matters Container registries sit at the heart of modern software delivery. Every CI/CD pipeline build, every Kubernetes pod startup, and every production deployment depends on the ability to authenticate, push artifacts, and pull images reliably. When a registry experiences degradation—even briefly—the downstream impact can cascade quickly: failed pipelines, delayed deployments, and application startup failures across multiple clusters and environments. Until now, ACR customers discovered service issues primarily through two paths: monitoring their own workloads for symptoms (failed pulls, auth errors), or checking the Azure Status page reactively. Neither approach gives your team the head start needed to coordinate an effective response before impact is felt. Auto-Communication Through Azure Service Health Alerts ACR now provides faster communication when: Degradation is detected in your region Automated remediation is in progress Engineering teams have been engaged and are actively mitigating These notifications arrive through Azure Service Health, the same platform your teams already use to track planned maintenance and health advisories across all your Azure resources. You receive timely visibility into registry health events—with rich context including tracking IDs, affected regions, impacted resources, and mitigation timelines—without needing to open a support request or continuously monitor dashboards. Who Benefits This capability delivers value across every team that depends on container registry availability: Enterprise platform teams managing centralized registries for large organizations will receive early warning before CI/CD pipelines begin failing across hundreds of development teams. SRE organizations can integrate ACR health signals into their existing incident management workflows—via webhook integration with PagerDuty, Opsgenie, ServiceNow, and similar tools—rather than relying on synthetic monitoring or customer reports. Teams with strict SLA requirements can now correlate production incidents with documented ACR service events, supporting post-incident reviews and customer communication. All ACR customers gain a level of registry observability that previously required custom monitoring infrastructure to approximate. A Part of ACR's Broader Observability Strategy Automated Service Health auto-communication is one component of ACR's ongoing investment in service health and observability. Combined with Azure Monitor metrics, diagnostic logs and events, Service Health alerts give your teams a layered observability posture: Signal What It Tells You Service Health alerts ACR-wide service events in your regions, with official mitigation status Azure Monitor metrics Registry-level request rates, success rates, and storage utilization. This will be available soon Diagnostic logs Repository and operation-level audit trail What's next: We are working on exposing additional ACR metrics through Azure Monitor, giving you deeper visibility into registry operations—such as authentication, pull and push API requests, and error breakdowns—directly in the Azure portal. This will enable self-service diagnostics, allowing your teams to investigate and troubleshoot registry issues independently without opening a support request. Getting Started To configure Service Health alerts for ACR, navigate to Service Health in the Azure portal, create an alert rule filtering on Container Registry, and attach an action group with your preferred notification channels (email, SMS, webhook). Alerts can also be created programmatically via ARM templates or Bicep for infrastructure-as-code workflows. For the full step-by-step setup guide—including recommended alert configurations for production-critical, maintenance awareness, and comprehensive monitoring scenarios—see Configure Service Health alerts for Azure Container Registry.The Agent that investigates itself
Azure SRE Agent handles tens of thousands of incident investigations each week for internal Microsoft services and external teams running it for their own systems. Last month, one of those incidents was about the agent itself. Our KV cache hit rate alert started firing. Cached token percentage was dropping across the fleet. We didn't open dashboards. We simply asked the agent. It spawned parallel subagents, searched logs, read through its own source code, and produced the analysis. First finding: Claude Haiku at 0% cache hits. The agent checked the input distribution and found that the average call was ~180 tokens, well below Anthropic’s 4,096-token minimum for Haiku prompt caching. Structurally, these requests could never be cached. They were false positives. The real regression was in Claude Opus: cache hit rate fell from ~70% to ~48% over a week. The agent correlated the drop against the deployment history and traced it to a single PR that restructured prompt ordering, breaking the common prefix that caching relies on. It submitted two fixes: one to exclude all uncacheable requests from the alert, and the other to restore prefix stability in the prompt pipeline. That investigation is how we develop now. We rarely start with dashboards or manual log queries. We start by asking the agent. Three months earlier, it could not have done any of this. The breakthrough was not building better playbooks. It was harness engineering: enabling the agent to discover context as the investigation unfolded. This post is about the architecture decisions that made it possible. Where we started In our last post, Context Engineering for Reliable AI Agents: Lessons from Building Azure SRE Agent, we described how moving to a single generalist agent unlocked more complex investigations. The resolution rates were climbing, and for many internal teams, the agent could now autonomously investigate and mitigate roughly 50% of incidents. We were moving in the right direction. But the scores weren't uniform, and when we dug into why, the pattern was uncomfortable. The high-performing scenarios shared a trait: they'd been built with heavy human scaffolding. They relied on custom response plans for specific incident types, hand-built subagents for known failure modes, and pre-written log queries exposed as opaque tools. We weren’t measuring the agent’s reasoning – we were measuring how much engineering had gone into the scenario beforehand. On anything new, the agent had nowhere to start. We found these gaps through manual review. Every week, engineers read through lower-scored investigation threads and pushed fixes: tighten a prompt, fix a tool schema, add a guardrail. Each fix was real. But we could only review fifty threads a week. The agent was handling ten thousand. We were debugging at human speed. The gap between those two numbers was where our blind spots lived. We needed an agent powerful enough to take this toil off us. An agent which could investigate itself. Dogfooding wasn't a philosophy - it was the only way to scale. The Inversion: Three bets The problem we faced was structural - and the KV cache investigation shows it clearly. The cache rate drop was visible in telemetry, but the cause was not. The agent had to correlate telemetry with deployment history, inspect the relevant code, and reason over the diff that broke prefix stability. We kept hitting the same gap in different forms: logs pointing in multiple directions, failure modes in uninstrumented paths, regressions that only made sense at the commit level. Telemetry showed symptoms, but not what actually changed. We'd been building the agent to reason over telemetry. We needed it to reason over the system itself. The instinct when agents fail is to restrict them: pre-write the queries, pre-fetch the context, pre-curate the tools. It feels like control. In practice, it creates a ceiling. The agent can only handle what engineers anticipated in advance. The answer is an agent that can discover what it needs as the investigation unfolds. In the KV cache incident, each step, from metric anomaly to deployment history to a specific diff, followed from what the previous step revealed. It was not a pre-scripted path. Navigating towards the right context with progressive discovery is key to creating deep agents which can handle novel scenarios. Three architectural decisions made this possible – and each one compounded on the last. Bet 1: The Filesystem as the Agent's World Our first bet was to give the agent a filesystem as its workspace instead of a custom API layer. Everything it reasons over – source code, runbooks, query schemas, past investigation notes – is exposed as files. It interacts with that world using read_file, grep, find, and shell. No SearchCodebase API. No RetrieveMemory endpoint. This is an old Unix idea: reduce heterogeneous resources to a single interface. Coding agents already work this way. It turns out the same pattern works for an SRE agent. Frontier models are trained on developer workflows: navigating repositories, grepping logs, patching files, running commands. The filesystem is not an abstraction layered on top of that prior. It matches it. When we materialized the agent’s world as a repo-like workspace, our human "Intent Met" score - whether the agent's investigation addressed the actual root cause as judged by the on-call engineer - rose from 45% to 75% on novel incidents. But interface design is only half the story. The other half is what you put inside it. Code Repositories: the highest-leverage context Teams had prewritten log queries because they did not trust the agent to generate correct ones. That distrust was justified. Models hallucinate table names, guess column schemas, and write queries against the wrong cluster. But the answer was not tighter restriction. It was better grounding. The repo is the schema. Everything else is derived from it. When the agent reads the code that produces the logs, query construction stops being guesswork. It knows the exact exceptions thrown, and the conditions under which each path executes. Stack traces start making sense, and logs become legible. But beyond query grounding, code access unlocked three new capabilities that telemetry alone could not provide: Ground truth over documentation. Docs drift and dashboards show symptoms. The code is what the service actually does. In practice, most investigations only made sense when logs were read alongside implementation. Point-in-time investigation. The agent checks out the exact commit at incident time, not current HEAD, so it can correlate the failure against the actual diffs. That's what cracked the KV cache investigation: a PR broke prefix stability, and the diff was the only place this was visible. Without commit history, you can't distinguish a code regression from external factors. Reasoning even where telemetry is absent. Some code paths are not well instrumented. The agent can still trace logic through source and explain behavior even when logs do not exist. This is especially valuable in novel failure modes – the ones most likely to be missed precisely because no one thought to instrument them. Memory as a filesystem, not a vector store Our first memory system used RAG over past session learnings. It had a circular dependency: a limited agent learned from limited sessions and produced limited knowledge. Garbage in, garbage out. But the deeper problem was retrieval. In SRE Context, embedding similarity is a weak proxy for relevance. “KV cache regression” and “prompt prefix instability” may be distant in embedding space yet still describe the same causal chain. We tried re-ranking, query expansion, and hybrid search. None fixed the core mismatch between semantic similarity and diagnostic relevance. We replaced RAG with structured Markdown files that the agent reads and writes through its standard tool interface. The model names each file semantically: overview.md for a service summary, team.md for ownership and escalation paths, logs.md for cluster access and query patterns, debugging.md for failure modes and prior learnings. Each carry just enough context to orient the agent, with links to deeper files when needed. The key design choice was to let the model navigate memory, not retrieve it through query matching. The agent starts from a structured entry point and follows the evidence toward what matters. RAG assumes you know the right query before you know what you need. File traversal lets relevance emerge as context accumulates. This removed chunking, overlap tuning, and re-ranking entirely. It also proved more accurate, because frontier models are better at following context than embeddings are at guessing relevance. As a side benefit, memory state can be snapshotted periodically. One problem remains unsolved: staleness. When two sessions write conflicting patterns to debugging.md, the model must reconcile them. When a service changes behavior, old entries can become misleading. We rely on timestamps and explicit deprecation notes, but we do not have a systemic solution yet. This is an active area of work, and anyone building memory at scale will run into it. The sandbox as epistemic boundary The filesystem also defines what the agent can see. If something is not in the sandbox, the agent cannot reason about it. We treat that as a feature, not a limitation. Security boundaries and epistemic boundaries are enforced by the same mechanism. Inside that boundary, the agent has full execution: arbitrary bash, python, jq, and package installs through pip or apt. That scope unlocks capabilities we never would have built as custom tools. It opens PRs with gh cli, like the prompt-ordering fix from KV cache incident. It pushes Grafana dashboards, like a cache-hit-rate dashboard we now track by model. It installs domain-specific CLI tools mid-investigation when needed. No bespoke integration required, just a shell. The recurring lesson was simple: a generally capable agent in the right execution environment outperforms a specialized agent with bespoke tooling. Custom tools accumulate maintenance costs. Shell commands compose for free. Bet 2: Context Layering Code access tells the agent what a service does. It does not tell the agent what it can access, which resources its tools are scoped to, or where an investigation should begin. This gap surfaced immediately. Users would ask "which team do you handle incidents for?" and the agent had no answer. Tools alone are not enough. An integration also needs ambient context so the model knows what exists, how it is configured, and when to use it. We fixed this with context hooks: structured context injected at prompt construction time to orient the agent before it takes action. Connectors - what can I access? A manifest of wired systems such as Log Analytics, Outlook, and Grafana, along with their configuration. Repositories - what does this system do? Serialized repo trees, plus files like AGENTS.md, Copilot.md, and CLAUDE.md with team-specific instructions. Knowledge map - what have I learned before? A two-tier memory index with a top-level file linking to deeper scenario-specific files, so the model can drill down only when needed. Azure resource topology - where do things live? A serialized map of relationships across subscriptions, resource groups, and regions, so investigations start in the right scope. Together, these context hooks turn a cold start into an informed one. That matters because a bad early choice does not just waste tokens. It sends the investigation down the wrong trajectory. A capable agent still needs to know what exists, what matters, and where to start. Bet 3: Frugal Context Management Layered context creates a new problem: budget. Serialized repo trees, resource topology, connector manifests, and a memory index fill context fast. Once the agent starts reading source files and logs, complex incidents hit context limits. We needed our context usage to be deliberately frugal. Tool result compression via the filesystem Large tool outputs are expensive because they consume context before the agent has extracted any value from them. In many cases, only a small slice or a derived summary of that output is actually useful. Our framework exposes these results as files to the agent. The agent can then use tools like grep, jq, or python to process them outside the model interface, so that only the final result enters context. The filesystem isn't just a capability abstraction - it's also a budget management primitive. Context Pruning and Auto Compact Long investigations accumulate dead weight. As hypotheses narrow, earlier context becomes noise. We handle this with two compaction strategies. Context Pruning runs mid-session. When context usage crosses a threshold, we trim or drop stale tool calls and outputs - keeping the window focused on what still matters. Auto-Compact kicks in when a session approaches its context limit. The framework summarizes findings and working hypotheses, then resumes from that summary. From the user's perspective, there's no visible limit. Long investigations just work. Parallel subagents The KV cache investigation required reasoning along two independent hypotheses: whether the alert definition was sound, and whether cache behavior had actually regressed. The agent spawned parallel subagents for each task, each operating in its own context window. Once both finished, it merged their conclusions. This pattern generalizes to any task with independent components. It speeds up the search, keeps intermediate work from consuming the main context window, and prevents one hypothesis from biasing another. The Feedback loop These architectural bets have enabled us to close the original scaling gap. Instead of debugging the agent at human speed, we could finally start using it to fix itself. As an example, we were hitting various LLM errors: timeouts, 429s (too many requests), failures in the middle of response streaming, 400s from code bugs that produced malformed payloads. These paper cuts would cause investigations to stall midway and some conversations broke entirely. So, we set up a daily monitoring task for these failures. The agent searches for the last 24 hours of errors, clusters the top hitters, traces each to its root cause in the codebase, and submits a PR. We review it manually before merging. Over two weeks, the errors were reduced by more than 80%. Over the last month, we have successfully used our agent across a wide range of scenarios: Analyzed our user churn rate and built dashboards we now review weekly. Correlated which builds needed the most hotfixes, surfacing flaky areas of the codebase. Ran security analysis and found vulnerabilities in the read path. Helped fill out parts of its own Responsible AI review, with strict human review. Handles customer-reported issues and LiveSite alerts end to end. Whenever it gets stuck, we talk to it and teach it, ask it to update its memory, and it doesn't fail that class of problem again. The title of this post is literal. The agent investigating itself is not a metaphor. It is a real workflow, driven by scheduled tasks, incident triggers, and direct conversations with users. What We Learned We spent months building scaffolding to compensate for what the agent could not do. The breakthrough was removing it. Every prewritten query was a place we told the model not to think. Every curated tool was a decision made on its behalf. Every pre-fetched context was a guess about what would matter before we understood the problem. The inversion was simple but hard to accept: stop pre-computing the answer space. Give the model a structured starting point, a filesystem it knows how to navigate, context hooks that tell it what it can access, and budget management that keeps it sharp through long investigations. The agent that investigates itself is both the proof and the product of this approach. It finds its own bugs, traces them to root causes in its own code, and submits its own fixes. Not because we designed it to. Because we designed it to reason over systems, and it happens to be one. We are still learning. Staleness is unsolved, budget tuning remains largely empirical, and we regularly discover assumptions baked into context that quietly constrain the agent. But we have crossed a new threshold: from an agent that follows your playbook to one that writes the next one. Thanks to visagarwal for co-authoring this post.
Azure SRE Agent Now Builds Expertise Like Your Best Engineer Introducing Deep Context
What if SRE Agent already knew your system before the next incident? Your most experienced SRE didn't become an expert overnight. Day one: reading runbooks, studying architecture diagrams, asking a lot of questions. Month three: knowing which services are fragile, which config changes cascade, which log patterns mean real trouble. Year two: diagnosing a production issue at 2 AM from a single alert because they'd built deep, living context about your systems. That learning process, absorbing documentation, reading code, handling incidents, building intuition from every interaction is what makes an expert. Azure SRE Agent could do the same thing From pulling context to living in it Azure SRE Agent already connects to Azure Monitor, PagerDuty, and ServiceNow. It queries Kusto logs, checks resource health, reads your code, and delivers root cause analysis often resolving incidents without waking anyone up. Thousands of incidents handled. Thousands of engineering hours saved. Deep Context takes this to the next level. Instead of accessing context on demand, your agent now lives in it — continuously reading your code, knowledge building persistent memory from every interaction, and evolving its understanding of your systems in the background. Three things makes Deep Context work: Continuous access. Source code, terminal, Python runtime, and Azure environment are available whenever the agent needs them. Connected repos are cloned into the agent's workspace automatically. The agent knows your code structure from the first message. Persistent memory. Insights from previous investigations, architecture understanding, team context — it all persists across sessions. The next time the agent picks up an alert, it already knows what happened last time. Background intelligence. Even when you're not chatting, background services continuously learn. After every conversation, the agent extracts what worked, what failed, what the root cause was. It aggregates these across all past investigations to build evolving operational insights. The agent recognizes patterns you haven't noticed yet. One example: connected to Kusto, background scanning auto-discovers every table, documents schemas, and builds reusable query templates. But this learning applies broadly — every conversation, every incident, every data source makes the agent sharper. Expertise that compound with every incident New on-call engineer SRE Agent with Deep Context Alert fires Opens runbook, looks up which service this maps to Already knows the service, its dependencies, and failure patterns from prior incidents Investigation Reads logs, searches code, asks teammates Goes straight to the relevant code path, correlates with logs and persistent insights from similar incidents After 100 incidents Becomes the team expert — irreplaceable institutional knowledge Same institutional knowledge — always available, never forgets, scales across your entire organization A human expert takes months to build this depth. An agent with Deep Context builds it in days and the knowledge compounds with every interaction. You shape what your agent learns. Deep Context learns automatically but the best results come when your team actively guides what the agent retains. Type #remember in chat to save important facts your agent should always know environment details, escalation paths, team preferences. For example: "#remember our Redis cache uses Premium tier with 6GB" or "#remember database failover takes approximately 15 minutes." These are recalled automatically during future investigations. Turn investigations into knowledge. After a good investigation, ask your agent to turn the resolution into a runbook: "Create a troubleshooting guide from the steps we just followed and save it to Knowledge settings." The agent generates a structured document, uploads it, and indexes it — so the next time a similar issue occurs, the agent finds and follows that guide automatically. The agent captures insights from every conversation on its own. Your guidance tells it which ones matter most. This is exactly how Microsoft’s own SRE team gets the best results: “Whenever it gets stuck, we talk to it and teach it, ask it to update its memory, and it doesn’t fail that class of problem again.” Read the full story in The Agent That Investigates Itself. See it in action: an Azure Monitor alert, end to end An HTTP 5xx spike fires on your container app. Your agent is in autonomous mode. It acknowledges the alert, checks resource health, reads logs, and delivers a diagnosis — that's what it already does well. Deep Context makes this dramatically better. Two things change everything: The agent already knows your environment.It'salready read your code, runbooks, and built context from previous investigations. Your route handlers, database layer, deployment configs, operational procedures, it knows all of it. So, when these alert fires, it doesn't start from scratch. It goes straight to the relevant code path, correlates a recent connection pooling commit with the deployment timeline, and confirms the root cause. The agent remembers.It's seen this pattern before a similar incident last week that was investigated but never permanently fixed. It recognizes the recurrence from persistent memory, skips rediscovery, confirms the issue is still in the code, and this time fixes it. Because it's in autonomous mode, the agent edits the source code, restarts the container, pushes the fix to a new branch, creates a PR, opens a GitHub Issue, and verifies service health, all before you wake up. The agent delivers a complete remediation summary including alert, root cause with code references, fix applied, PR created, without a single message from you. Code access turns diagnosis into action. Persistent memory turns recurring problems into solved problems. Give your agent your code — here's why it matters If you're on an IT operations, SRE, or DevOps team, you might think: "Code access? That's for developers." We'd encourage you to rethink that. Your infrastructure-as-code, deployment configs, Helm charts, Terraform files, pipeline definitions — that's all code. And it's exactly the context your agent needs to go from good to extraordinary. When your agent can read your actual configuration and infrastructure code, investigations transform. Instead of generic troubleshooting, you get root cause analysis that points to the exact file, the exact line, the exact config change. It correlates a deployment failure with a specific commit. It reads your Helm values and spots the misconfiguration that caused the pod crash loop. "Will the agent modify our production code?" No. The agent works in a secure sandbox — a copy of your repository, not your production environment. When it identifies a fix, it creates a pull request on a new branch. Your code review process, your CI/CD pipeline, your approval gates — all untouched. The agent proposes. Your team decides. Whether you're a developer, an SRE, or an IT operator managing infrastructure you didn't write — connecting your code is the single highest-impact thing you can do to make your agent smarter. The compound effects Deep Context amplifies every other SRE Agent capability: Deep Context + Incident management → Alerts fire, the agent correlates logs with actual code. Root cause references specific files and line numbers. Deep Context + Scheduled tasks → Automated code analysis, compliance checks, and drift detection — inspecting your actual infrastructure code, not just metrics. Deep Context + MCP connectors → Datadog, Splunk, PagerDuty data combined with source code context. The full picture in one conversation. Deep Context + Knowledge files → Upload runbooks, architecture docs, postmortems — in any format. The agent cross-references your team's knowledge with live code, logs, and infrastructure state. Logs tell the agent what happened. Code tells it why. Your knowledge files tell it what to do about it. Get started Deep Context is available today as part of Azure SRE Agent GA. New agents have it enabled by default. For a step-by-step walkthrough connecting your code, logs, incidents, and knowledge files, see What It Takes to Give an SRE Agent a Useful Starting Point Resources SRE Agent GA Announcement blog - https://aka.ms/sreagent/ga SRE Agent GA What’s new post - https://aka.ms/sreagent/blog/whatsnewGA SRE Agent Documentation – https://aka.ms/sreagent/newdocs SRE Agent Overview - https://aka.ms/sreagent/newdocsoverview
Migrating to the next generation of Virtual Nodes on Azure Container Instances (ACI)
What is ACI/Virtual Nodes? Azure Container Instances (ACI) is a fully-managed serverless container platform which gives you the ability to run containers on-demand without provisioning infrastructure. Virtual Nodes on ACI allows you to run Kubernetes pods managed by an AKS cluster in a serverless way on ACI instead of traditional VM‑backed node pools. From a developer’s perspective, Virtual Nodes look just like regular Kubernetes nodes, but under the hood the pods are executed on ACI’s serverless infrastructure, enabling fast scale‑out without waiting for new VMs to be provisioned. This makes Virtual Nodes ideal for bursty, unpredictable, or short‑lived workloads where speed and cost efficiency matter more than long‑running capacity planning. Introducing the next generation of Virtual Nodes on ACI The newer Virtual Nodes v2 implementation modernises this capability by removing many of the limitations of the original AKS managed add‑on and delivering a more Kubernetes‑native, flexible, and scalable experience when bursting workloads from AKS to ACI. In this article I will demonstrate how you can migrate an existing AKS cluster using the Virtual Nodes managed add-on (legacy), to the new generation of Virtual Nodes on ACI, which is deployed and managed via Helm. More information about Virtual Nodes on Azure Container Instances can be found here, and the GitHub repo is available here. Advanced documentation for Virtual Nodes on ACI is also available here, and includes topics such as node customisation, release notes and a troubleshooting guide. Please note that all code samples within this guide are examples only, and are provided without warranty/support. Background Virtual Nodes on ACI is rebuilt from the ground-up, and includes several fixes and enhancements, for instance: Added support/features VNet peering, outbound traffic to the internet with network security groups Init containers Host aliases Arguments for exec in ACI Persistent Volumes and Persistent Volume Claims Container hooks Confidential containers (see supported regions list here) ACI standby pools Support for image pulling via Private Link and Managed Identity (MSI) Planned future enhancements Kubernetes network policies Support for IPv6 Windows containers Port Forwarding Note: The new generation of the add-on is managed via Helm rather than as an AKS managed add-on. Requirements & limitations Each Virtual Nodes on ACI deployment requires 3 vCPUs and 12 GiB memory on one of the AKS cluster’s VMs Each Virtual Nodes node supports up to 200 pods DaemonSets are not supported Virtual Nodes on ACI requires AKS clusters with Azure CNI networking (Kubenet is not supported, nor is overlay networking) Virtual Nodes on ACI is incompatible with API server authorized IP ranges for AKS (because of the subnet delegation to ACI) Migrating to the next generation of Virtual Nodes on Azure Container Instances via Helm chart For this walkthrough, I'm using Bash via Windows Subsystem for Linux (WSL), along with the Azure CLI. Direct migration is not supported, and therefore the steps below show an example of removing Virtual Nodes managed add-on and its resources and then installing the Virtual Nodes on ACI Helm chart. In this walkthrough I will explain how to delete and re-create the Virtual Nodes subnet, however if you need to preserve the VNet and/or use a custom subnet name, refer to the Helm customisation steps here. Prerequisites A recent version of the Azure CLI An Azure subscription with sufficient ACI quota for your selected region Helm Deployment steps Initialise environment variables location=northeurope rg=rg-virtualnode-demo vnetName=vnet-virtualnode-demo clusterName=aks-virtualnode-demo aksSubnetName=subnet-aks vnSubnetName=subnet-vn Scale-down any running Virtual Nodes workloads (example below): kubectl delete deploy <deploymentName> -n <namespace> Drain and cordon the legacy Virtual Nodes node: kubectl drain virtual-node-aci-linux Disable the Virtual Nodes managed add-on (legacy): az aks disable-addons --resource-group $rg --name $clusterName --addons virtual-node Export a backup of the original subnet configuration: az network vnet subnet show --resource-group $rg --vnet-name $vnetName --name $vnSubnetName > subnetConfigOriginal.json Delete the original subnet (subnets cannot be renamed and therefore must be re-created): az network vnet subnet delete -g $rg -n $vnSubnetName --vnet-name $vnetName Create the new Virtual Nodes on ACI subnet (replicate the configuration of the original subnet but with the specific name value of cg): vnSubnetId=$(az network vnet subnet create \ --resource-group $rg \ --vnet-name $vnetName \ --name cg \ --address-prefixes 10.241.0.0/16 \ --delegations Microsoft.ContainerInstance/containerGroups --query id -o tsv) Assign the cluster's -kubelet identity Contributor access to the infrastructure resource group, and Network Contributor access to the ACI subnet: nodeRg=$(az aks show --resource-group $rg --name $clusterName --query nodeResourceGroup -o tsv) nodeRgId=$(az group show -n $nodeRg --query id -o tsv) agentPoolIdentityId=$(az aks show --resource-group $rg --name $clusterName --query "identityProfile.kubeletidentity.resourceId" -o tsv) agentPoolIdentityObjectId=$(az identity show --ids $agentPoolIdentityId --query principalId -o tsv) az role assignment create \ --assignee-object-id "$agentPoolIdentityObjectId" \ --assignee-principal-type ServicePrincipal \ --role "Contributor" \ --scope "$nodeRgId" az role assignment create \ --assignee-object-id "$agentPoolIdentityObjectId" \ --assignee-principal-type ServicePrincipal \ --role "Network Contributor" \ --scope "$vnSubnetId" Download the cluster's kubeconfig file: az aks get-credentials -n $clusterName -g $rg Clone the virtualnodesOnAzureContainerInstances GitHub repo: git clone https://github.com/microsoft/virtualnodesOnAzureContainerInstances.git Install the Virtual Nodes on ACI Helm chart: helm install <yourReleaseName> <GitRepoRoot>/Helm/virtualnode Confirm the Virtual Nodes node shows within the cluster and is in a Ready state (virtualnode-n): $ kubectl get node NAME STATUS ROLES AGE VERSION aks-nodepool1-35702456-vmss000000 Ready <none> 4h13m v1.33.6 aks-nodepool1-35702456-vmss000001 Ready <none> 4h13m v1.33.6 virtualnode-0 Ready <none> 162m v1.33.7 Delete the previous Virtual Nodes node from the cluster: kubectl delete node virtual-node-aci-linux Test and confirm pod scheduling on Virtual Node: apiVersion: v1 kind: Pod metadata: annotations: name: demo-pod spec: containers: - command: - /bin/bash - -c - 'counter=1; while true; do echo "Hello, World! Counter: $counter"; counter=$((counter+1)); sleep 1; done' image: mcr.microsoft.com/azure-cli name: hello-world-counter resources: limits: cpu: 2250m memory: 2256Mi requests: cpu: 100m memory: 128Mi nodeSelector: virtualization: virtualnode2 tolerations: - effect: NoSchedule key: virtual-kubelet.io/provider operator: Exists If the pod successfully starts on the Virtual Node, you should see similar to the below: $ kubectl get pod -o wide demo-pod NAME READY STATUS RESTARTS AGE IP NODE NOMINATED NODE READINESS GATES demo-pod 1/1 Running 0 95s 10.241.0.4 vnode2-virtualnode-0 <none> <none> Modify your deployments to run on Virtual Nodes on ACI For Virtual Nodes managed add-on (legacy), the following nodeSelector and tolerations are used to run pods on Virtual Nodes: nodeSelector: kubernetes.io/role: agent kubernetes.io/os: linux type: virtual-kubelet tolerations: - key: virtual-kubelet.io/provider operator: Exists - key: azure.com/aci effect: NoSchedule For Virtual Nodes on ACI, the nodeSelector/tolerations are slightly different: nodeSelector: virtualization: virtualnode2 tolerations: - effect: NoSchedule key: virtual-kubelet.io/provider operator: Exists Troubleshooting Check the virtual-node-admission-controller and virtualnode-n pods are running within the vn2 namespace: $ kubectl get pod -n vn2 NAME READY STATUS RESTARTS AGE virtual-node-admission-controller-54cb7568f5-b7hnr 1/1 Running 1 (5h21m ago) 5h21m virtualnode-0 6/6 Running 6 (4h48m ago) 4h51m If these pods are in a Pending state, your node pool(s) may not have enough resources available to schedule them (use kubectl describe pod to validate). If the virtualnode-n pod is crashing, check the logs of the proxycri container to see whether there are any Managed Identity permissions issues (the cluster's -agentpool MSI needs to have Contributor access on the infrastructure resource group): kubectl logs -n vn2 virtualnode-0 -c proxycri Further troubleshooting guidance is available within the official documentation. Support If you have issues deploying or using Virtual Nodes on ACI, add a GitHub issue hereMicrosoft Azure at KubeCon Europe 2026 | Amsterdam, NL - March 23-26
Microsoft Azure is coming back to Amsterdam for KubeCon + CloudNativeCon Europe 2026 in two short weeks, from March 23-26! As a Diamond Sponsor, we have a full week of sessions, hands-on activities, and ways to connect with the engineers behind AKS and our open-source projects. Here's what's on the schedule: Azure Day with Kubernetes: 23 March 2026 Before the main conference begins, join us at Hotel Casa Amsterdam for a free, full-day technical event built around AKS (registration required for entry - capacity is limited!). Whether you're early in your Kubernetes journey, running clusters at scale, or building AI apps, the day is designed to give you practical guidance from Microsoft product and engineering teams. Morning sessions cover what's new in AKS, including how teams are building and running AI apps on Kubernetes. In the afternoon, pick your track: Hands-on AKS Labs: Instructor-led labs to put the morning's concepts into practice. Expert Roundtables: Small-group conversations with AKS engineers on topics like security, autoscaling, AI workloads, and performance. Bring your hard questions. Evening: Drinks on us. Capacity is limited, so secure your spot before it closes: aka.ms/AKSDayEU KubeCon + CloudNativeCon: 24-26 March 2026 There will be lots going on at the main conference! Here's what to add to your calendar: Keynote (24 March): Jorge Palma takes the stage to tackle a question the industry is actively wrestling with: can AI agents reliably operate and troubleshoot Kubernetes at scale, and should they? Customer Keynote (24 March): Wayve's Mukund Muralikrishnan shares how they handle GPU scheduling across multi-tenant inference workloads using Kueue, providing a practical look at what production AI infrastructure actually requires. Demo Theatre (25 March): Anson Qian and Jorge Palma walk through a Kubernetes-native approach to cross-cloud AI inference, covering elastic autoscaling with Karpenter and GPU capacity scheduling across clouds. Sessions: Microsoft engineers are presenting across all three days on topics ranging from multi-cluster networking, supply chain security, observability, Istio in production, and more. Full list below. Find our team in the Project Pavilion at kiosks for Inspektor Gadget, Headlamp, Drasi, Radius, Notary Project, Flatcar, ORAS, Ratify, and Istio. Brendan Burns, Kubernetes co-founder and Microsoft CVP & Technical Fellow, will also share his thoughts on the latest developments and key Microsoft announcements related to open-source, cloud native, and AI application development in his KubeCon Europe blog on March 24. Come find us at Microsoft Azure booth #200 all three days. We'll be running short demos and sessions on AKS, running Kubernetes at scale, AI workloads, and cloud-native topics throughout the show, plus fun activations and opportunities to unlock special swag. Read on below for full details on our KubeCon sessions and booth theater presentations: Sponsored Keynote Date: Tues 24 March 2026 Start Time: 10:18 AM CET Room: Hall 12 Title: Scaling Platform Ops with AI Agents: Troubleshooting to Remediation Speakers: Jorge Palma, Natan Yellin (Robusta) As AI agents increasingly write our code, can they also operate and troubleshoot our infrastructure? More importantly, should they? This keynote explores the practical reality of deploying AI agents to maintain Kubernetes clusters at scale. We'll demonstrate HolmesGPT, an open-source CNCF sandbox project that connects LLMs to operational and observability data to diagnose production issues. You'll see how agents reduce MTTR by correlating logs, metrics, and cluster state far faster than manual investigation. Then we'll tackle the harder problem: moving from diagnosis to remediation. We'll show how agents with remediation policies can detect and fix issues autonomously, within strict RBAC boundaries, approval workflows, and audit trails. We'll be honest about challenges: LLM non-determinism, building trust, and why guardrails are non-negotiable. This isn't about replacing SREs; it's about multiplying their effectiveness so they can focus on creative problem-solving and system design. Customer Keynote Date: Tues 24 March 2026 Start Time: 9:37 AM CET Room: Hall 12 Title: Rules of the road for shared GPUs: AI inference scheduling at Wayve Speaker: Mukund Muralikrishnan, Wayve Technologies As AI inference workloads grow in both scale and diversity, predictable access to GPUs becomes as important as raw throughput, especially in large, multi-tenant Kubernetes clusters. At Wayve, Kubernetes underpins a wide range of inference workloads, from latency-sensitive evaluation and validation to large-scale synthetic data generation supporting the development of an end-to-end self-driving system. These workloads run side by side, have very different priorities, and all compete for the same GPU capacity. In this keynote, we will share how we manage scheduling and resources for multi-tenant AI inference on Kubernetes. We will explain why default Kubernetes scheduling falls short, and how we use Kueue, a Kubernetes-native queueing and admission control solution, to operate shared GPU clusters reliably at scale. This approach gives teams predictable GPU allocations, improves cluster utilisation, and reduces operational noise. We will close by briefly showing how frameworks like Ray fit into this model as Wayve scales its AI Driver platform. KubeCon Theatre Demo Date: Wed 25 March 2026 Start Time: 13:15 CET Room: Hall 1-5 | Solutions Showcase | Demo Theater Title: Building cross-cloud AI inference on Kubernetes with OSS Speaker: Anson Qian, Jorge Palma Operating AI inference under bursty, latency-sensitive workloads is hard enough on a single cluster. It gets harder when GPU capacity is fragmented across regions and cloud providers. This demo walks through a Kubernetes-native pattern for cross-cloud AI inference, using an incident triage and root cause analysis workflow as the example. The stack is built on open-source capabilities for lifecycle management, inference, autoscaling, and cross-cloud capacity scheduling. We will specifically highlight Karpenter for elastic autoscaling and a GPU flex nodes project for scheduling capacity across multiple cloud providers into a single cluster. Models, inference endpoints, and GPU resources are treated as first-class Kubernetes objects, enabling elastic scaling, stable routing under traffic spikes, and cross-provider failover without a separate AI control plane. KubeCon Europe 2025 Sessions with Microsoft Speakers Speaker Title Jorge Palma Microsoft keynote: Scaling Platform Ops with AI Agents: Troubleshooting to Remediation Anson Qian, Jorge Palma Microsoft demo: Building cross-cloud AI inference on Kubernetes with OSS Will Tsai Leveling up with Radius: Custom Resources and Headlamp Integration for Real-World Workloads Simone Rodigari Demystifying the Kubernetes Network Stack (From Pod to Pod) Joaquin Rodriguez Privacy as Infrastructure: Declarative Data Protection for AI on Kubernetes Cijo Thomas ⚡Lightning Talk: “Metrics That Lie”: Understanding OpenTelemetry’s Cardinality Capping and Its Implications Gaurika Poplai ⚡Lightning Talk: Compliance as Code Meets Developer Portals: Kyverno + Backstage in Action Mereta Degutyte & Anubhab Majumdar Network Flow Aggregation: Pay for the Logs You Care About! Niranjan Shankar Expl(AI)n Like I’m 5: An Introduction To AI-Native Networking Danilo Chiarlone Running Wasmtime in Hardware-Isolated Microenvironments Jack Francis Cluster Autoscaler Evolution Jackie Maertens Cloud Native Theater | Istio Day: Running State of the Art Inference with Istio and LLM-D Jackie Maertens & Mitch Connors Bob and Alice Revisited: Understanding Encryption in Kubernetes Mitch Connors Istio in Production: Expected Value, Results, and Effort at GitHub Scale Mitch Connors Evolution or Revolution: Istio as the Network Platform for Cloud Native René Dudfield Ping SRE? I Am the SRE! Awesome Fun I Had Drawing a Zine for Troubleshooting Kubernetes Deployments René Dudfield & Santhosh Nagaraj Does Your Project Want a UI in Kubernetes-SIGs/headlamp? Bridget Kromhout How Will Customized Kubernetes Distributions Work for You? a Discussion on Options and Use Cases Kenneth Kilty AI-Powered Cloud Native Modernization: From Real Challenges to Concrete Solutions Mike Morris Building the Next Generation of Multi-Cluster with Gateway API Toddy Mladenov, Flora Taagen & Dallas Delaney Beyond Image Pull-Time: Ensuring Runtime Integrity With Image Layer Signing Microsoft Booth Theatre Sessions Tues 24 March (11:00 - 18:00) Zero-Migration AI with Drasi: Bridge Your Existing Infrastructure to Modern Workflows Bringing real-time Kubernetes observability to AI agents via Model Context Protocol Secure Kubernetes Across the Stack: Supply Chain to Runtime Cut the Noise, Cut the Bill: Cost‑Smart Network Observability for Kubernetes AKS everywhere: one Kubernetes experience from Cloud to Edge Teaching AI to Build Better AKS Clusters with Terraform AKS-Flex: autoscale GPU nodes from Azure and neocloud like Nebius using karpenter Block Game with Block Storage: Running Minecraft on Kubernetes with local NVMe When One Cluster Fails: Keeping Kubernetes Services Online with Cilium ClusterMesh You Spent How Much? Controlling Your AI Spend with Istio + agentgateway Azure Front Door Edge Actions: Hardware-protected CDN functions in Azure Secure Your Sensitive Workloads with Confidential Containers on Azure Red Hat OpenShift AKS Automatic Anyscale on Azure Wed 25 March Kubernetes Answers without AI (And That's Okay) Accelerating Cloud‑Native and AI Workloads with Azure Linux on AKS Codeless OpenTelemetry: Auto‑Instrumenting Kubernetes Apps in Minutes Life After ingress-nginx: Modern Kubernetes Ingress on AKS Modern Apps, Faster: Modernization with AKS + GitHub Copilot App Mod Get started developing on AKS Encrypt Everything, Complicate Nothing: Rethinking Kubernetes Workload Network Security From Repo to Running on AKS with GitHub Copilot Simplify Multi‑Cluster App Traffic with Azure Kubernetes Application Network Open Source with Chainguard and Microsoft: Better Together on AKS Accelerating Cloud-Native Delivery for Developers: API-Driven Platforms with Radius Operate Kubernetes at Scale with Azure Kubernetes Fleet Manager Thurs 26 March Oooh Wee! An AKS GUI! – Deploy, Secure & Collaborate in Minutes (No CLI Required) Sovereign Kubernetes: Run AKS Where the Cloud Can’t Go Thousand Pods, One SAN: Burst-Scaling Stateful Apps with Azure Container Storage + Elastic SAN There will also be a wide variety of demos running at our booth throughout the show – be sure to swing by to chat with the team. We look forward to seeing you at KubeCon Europe 2026 in Amsterdam Psst! Local or coming in to Amsterdam early? You can also catch the Microsoft team at: Cloud Native Rejekts on 21 March Maintainer Summit on 22 March
Unifying Scattered Observability Data from Dynatrace + Azure for Self-Healing with SRE Agent
What if your deployments could fix themselves? The Deployment Remediation Challenge Modern operations teams face a recurring nightmare: A deployment ships at 9 AM Errors spike at 9:15 AM By the time you correlate logs, identify the bad revision, and execute a rollback—it's 10:30 AM Your users felt 75 minutes of degraded experience The data to detect and fix this existed the entire time—but it was scattered across clouds and platforms: Error logs and traces → Dynatrace (third-party observability cloud) Deployment history and revisions → Azure Container Apps API Resource health and metrics → Azure Monitor Rollback commands → Azure CLI Your observability data lives in one cloud. Your deployment data lives in another. Stitching together log analysis from Dynatrace with deployment correlation from Azure—and then executing remediation—required a human to manually bridge these silos. What if an AI agent could unify data from third-party observability platforms with Azure deployment history and act on it automatically—every week, before users even notice? Enter SRE Agent + Model Context Protocol (MCP) + Subagents Azure SRE Agent doesn't just work with Azure. Using the Model Context Protocol (MCP), you can connect external observability platforms like Dynatrace directly to your agent. Combined with subagents for specialized expertise and scheduled tasks for automation, you can build an automated deployment remediation system. Here's what I built/configured for my Azure Container Apps environment inside SRE Agent: Component Purpose Dynatrace MCP Connector Connect to Dynatrace's MCP gateway for log queries via DQL 'Dynatrace' Subagent Log analysis specialist that executes DQL queries and identifies root causes 'Remediation' Subagent Deployment remediation specialist that correlates errors with deployments and executes rollbacks Scheduled Task Weekly Monday 9 AM health check for the 'octopets-prod-api' Container App Subagent workflow: The subagent workflow in SRE Agent Builder: 'OctopetsScheduledTask' triggers 'RemediationSubagent' (12 tools), which hands off to 'DynatraceSubagent' (3 MCP tools) for log analysis. How I Set It Up: Step by Step Step 1: Connect Dynatrace via MCP SRE Agent supports the Model Context Protocol (MCP) for connecting external data sources. Dynatrace exposes an MCP gateway that provides access to its APIs as first-class tools. Connection configuration: { "name": "dynatrace-mcp-connector", "dataConnectorType": "Mcp", "dataSource": "Endpoint=https://<your-tenant>.live.dynatrace.com/platform-reserved/mcp-gateway/v0.1/servers/dynatrace-mcp/mcp;AuthType=BearerToken;BearerToken=<your-api-token>" } Once connected, SRE Agent automatically discovers Dynatrace tools. 💡 Tip: When creating your Dynatrace API token, grant the `entities.read`, `events.read`, and `metrics.read` scopes for comprehensive access. Step 2: Build Specialized Subagents Generic agents are good. Specialized agents are better. I created two subagents that work together in a coordinated workflow—one for Dynatrace log analysis, the other for deployment remediation. DynatraceSubagent This subagent is the log analysis specialist. It uses the Dynatrace MCP tools to execute DQL queries and identify root causes. Key capabilities: Executes DQL queries via MCP tools (`create-dql`, `execute-dql`, `explain-dql`) Fetches 5xx error counts, request volumes, and spike detection Returns consolidated analysis with root cause, affected services, and error patterns 👉 View full DynatraceSubagent configuration here RemediationSubagent This is the deployment remediation specialist. It correlates Dynatrace log analysis with Azure Container Apps deployment history, generates correlation charts, and executes rollbacks when confidence is high. Key capabilities: Retrieves Container Apps revision history (`GetDeploymentTimes`, `ListRevisions`) Generates correlation charts (`PlotTimeSeriesData`, `PlotBarChart`, `PlotAreaChartWithCorrelation`) Computes confidence score (0-100%) for deployment causation Executes rollback and traffic shift when confidence > 70% 👉 View full RemediationSubagent configuration here The power of specialization: Each agent focuses on its domain—DynatraceSubagent handles log analysis, RemediationSubagent handles deployment correlation and rollback. When the workflow runs, RemediationSubagent hands off to DynatraceSubagent (bi-directional handoff) for analysis, gets the findings back, and continues with remediation. Simple delegation, not a single monolithic agent trying to do everything. Step 3: Create the Weekly Scheduled Task Now the automation. I configured a scheduled task that runs every Monday at 9:30 AM to check whether deployments in the last 4 hours caused any issues—and automatically remediate if needed. Scheduled task configuration: Setting Value Task Name OctopetsScheduledTask Frequency Weekly Day of Week Monday Time 9:30 AM Response Subagent RemediationSubagent Scheduled Task Configuration Configuring the OctopetsScheduledTask in the SRE Agent portal The key insight: the scheduled task is just a coordinator. It immediately hands off to the RemediationSubagent, which orchestrates the entire workflow including handoffs to DynatraceSubagent. Step 4: See It In Action Here's what happens when the scheduled task runs: The scheduled task triggering and initiating Dynatrace analysis for octopets-prod-api The DynatraceSubagent analyzes the logs and identifies the root cause: executing DQL queries and returning consolidated log analysis The RemediationSubagent then generates correlation charts: Finally, with a 95% confidence score, SRE agent executes the rollback autonomously: executing rollback and traffic shift autonomously. The agent detected the bad deployment, generated visual evidence, and automatically shifted 100% traffic to the last known working revision—all without human intervention. Why This Matters Before After Manually check Dynatrace after incidents Automated DQL queries via MCP Stitch together logs + deployments manually Subagents correlate data automatically Rollback requires human decision + execution Confidence-based auto-remediation 75+ minutes from deployment to rollback Under 5 Minutes with autonomous workflow Reactive incident response Proactive weekly health checks Try It Yourself Connect your observability tool via MCP (Dynatrace, Datadog, New Relic, Prometheus—any tool with an MCP gateway) Build a log analysis subagent that knows how to query your observability data Build a remediation subagent that can correlate logs with deployments and execute fixes Wire them together with handoffs so the subagents can delegate log analysis Create a scheduled task to trigger the workflow automatically Learn More Azure SRE Agent documentation Model Context Protocol (MCP) integration guide Building subagents for specialized workflows Scheduled tasks and automation SRE Agent Community Azure SRE Agent pricing SRE Agent BlogsFrom "Maybe Next Quarter" to "Running Before Lunch" on Container Apps - Modernizing Legacy .NET App
In early 2025, we wanted to modernize Jon Galloway's MVC Music Store — a classic ASP.NET MVC 5 app running on .NET Framework 4.8 with Entity Framework 6. The goal was straightforward: address vulnerabilities, enable managed identity, and deploy to Azure Container Apps and Azure SQL. No more plaintext connection strings. No more passwords in config files. We hit a wall immediately. Entity Framework on .NET Framework did not support Azure.Identity or DefaultAzureCredential. We just could not add a NuGet package and call it done — we’d need EF Core, which means modern .NET - and rewriting the data layer, the identity system, the startup pipeline, the views. The engineering team estimated one week of dedicated developer work. As a product manager without extensive .NET modernization experience, I wasn't able to complete it quickly on my own, so the project was placed in the backlog. This was before the GitHub Copilot "Agent" mode, the GitHub Copilot app modernization (a specialized agent with skills for modernization) existed but only offered assessment — it could tell you what needed to change, but couldn't make the end to end changes for you. Fast-forward one year. The full modernization agent is available. I sat down with the same app and the same goal. A few hours later, it was running on .NET 10 on Azure Container Apps with managed identity, Key Vault integration, and zero plaintext credentials. Thank you GitHub Copilot app modernization! And while we were on it – GitHub Copilot helped to modernize the experience as well, built more tests and generated more synthetic data for testing. Why Azure Container Apps? Azure Container Apps is an ideal deployment target for this modernized MVC Music Store application because it provides a serverless, fully managed container hosting environment. It abstracts away infrastructure management while natively supporting the key security and operational features this project required. It pairs naturally with infrastructure-as-code deployments, and its per-second billing on a consumption plan keeps costs minimal for a lightweight web app like this, eliminating the overhead of managing Kubernetes clusters while still giving you the container portability that modern .NET apps benefit from. That is why I asked Copilot to modernize to Azure Container Apps - here's how it went - Phase 1: Assessment GitHub Copilot App Modernization started by analyzing the codebase and producing a detailed assessment: Framework gap analysis — .NET Framework 4.0 → .NET 10, identifying every breaking change Dependency inventory — Entity Framework 6 (not EF Core), MVC 5 references, System.Web dependencies Security findings — plaintext SQL connection strings in Web.config, no managed identity support API surface changes — Global.asax → Program.cs minimal hosting, System.Web.Mvc → Microsoft.AspNetCore.Mvc The assessment is not a generic checklist. It reads your code — your controllers, your DbContext, your views — and maps a concrete modernization path. For this app, the key finding was clear: EF 6 on .NET Framework cannot support DefaultAzureCredential. The entire data layer needs to move to EF Core on modern .NET to unlock passwordless authentication. Phase 2: Code & Dependency Modernization This is where last year's experience ended and this year's began. The agent performed the actual modernization: Project structure: .csproj converted from legacy XML format to SDK-style targeting net10.0 Global.asax replaced with Program.cs using minimal hosting packages.config → NuGet PackageReference entries Data layer (the hard part): Entity Framework 6 → EF Core with Microsoft.EntityFrameworkCore.SqlServer DbContext rewritten with OnModelCreating fluent configuration System.Data.Entity → Microsoft.EntityFrameworkCore namespace throughout EF Core modernization generated from scratch Database seeding moved to a proper DbSeeder pattern with MigrateAsync() Identity: ASP.NET Membership → ASP.NET Core Identity with ApplicationUser, ApplicationDbContext Cookie authentication configured through ConfigureApplicationCookie Security (the whole trigger for this modernization): Azure.Identity + DefaultAzureCredential integrated in Program.cs Azure Key Vault configuration provider added via Azure.Extensions.AspNetCore.Configuration.Secrets Connection strings use Authentication=Active Directory Default — no passwords anywhere Application Insights wired through OpenTelemetry Views: Razor views updated from MVC 5 helpers to ASP.NET Core Tag Helpers and conventions _Layout.cshtml and all partials migrated The code changes touched every layer of the application. This is not a find-and-replace — it's a structural rewrite that maintains functional equivalence. Phase 3: Local Testing After modernization, the app builds, runs locally, and connects to a local SQL Server (or SQL in a container). EF Core modernizations apply cleanly, the seed data loads, and you can browse albums, add to cart, and check out. The identity system works. The Key Vault integration gracefully skips when KeyVaultName isn't configured — meaning local dev and Azure use the same Program.cs with zero code branches. Phase 4: AZD UP and Deployment to Azure The agent also generates the deployment infrastructure: azure.yaml — AZD service definition pointing to the Dockerfile, targeting Azure Container Apps Dockerfile — Multi-stage build using mcr.microsoft.com/dotnet/sdk:10.0 and aspnet:10.0 infra/main.bicep — Full IaaC including: Azure Container Apps with system + user-assigned managed identity Azure SQL Server with Azure AD-only authentication (no SQL auth) Azure Key Vault with RBAC, Secrets Officer role for the managed identity Container Registry with ACR Pull role assignment Application Insights + Log Analytics All connection strings injected as Container App secrets — using Active Directory Default, not passwords One command: AZD UP Provisions everything, builds the container, pushes to ACR, deploys to Container Apps. The app starts, runs MigrateAsync() on first boot, seeds the database, and serves traffic. Managed identity handles all auth to SQL and Key Vault. No credentials stored anywhere. What Changed in a Year Early 2025 Now Assessment Available Available Automated code modernization Semi-manual ✅ Full modernization agent Infrastructure generation Semi-manual ✅ Bicep + AZD generated Time to complete Weeks ✅ Hours The technology didn't just improve incrementally. The gap between "assessment" and "done" collapsed. A year ago, knowing what to do and being able to do it were very different things. Now they're the same step. Who This Is For If you have a .NET Framework app sitting on a backlog because "the modernization is too expensive" — revisit that assumption. The process changed. GitHub Copilot app modernization helps you rewrite your data layer, generates your infrastructure, and gets you to azd up. It can help you generate tests to increase your code coverage. If you have some feature requests – or – if you want to further optimize the code for scale – bring your requirements or logs or profile traces, you can take care of all of that during the modernization process. MVC Music Store went from .NET Framework 4.0 with Entity Framework 6 and plaintext SQL credentials to .NET 10 on Azure Container Apps with managed identity, Key Vault, and zero secrets in code. In an afternoon. That backlog item might be a lunch break now 😊. Really. Find your legacy apps and try it yourself. Next steps Modernize your .Net or Java apps with GitHub Copilot app modernization – https://aka.ms/ghcp-appmod Open your legacy application in Visual Studio or Visual Studio Code to start the process Deploy to Azure Container Apps https://aka.ms/aca/startAn AI led SDLC: Building an End-to-End Agentic Software Development Lifecycle with Azure and GitHub.
This is due to the inevitable move towards fully agentic, end-to-end SDLCs. We may not yet be at a point where software engineers are managing fleets of agents creating the billion-dollar AI abstraction layer, but (as I will evidence in this article) we are certainly on the precipice of such a world. Before we dive into the reality of agentic development today, let me examine two very different modules from university and their relevance in an AI-first development environment. Manual Requirements Translation. At university I dedicated two whole years to a unit called “Systems Design”. This was one of my favourite units, primarily focused on requirements translation. Often, I would receive a scenario between “The Proprietor” and “The Proprietor’s wife”, who seemed to be in a never-ending cycle of new product ideas. These tasks would be analysed, broken down, manually refined, and then mapped to some kind of early-stage application architecture (potentially some pseudo-code and a UML diagram or two). The big intellectual effort in this exercise was taking human intention and turning it into something tangible to build from (BA’s). Today, by the time I have opened Notepad and started to decipher requirements, an agent can already have created a comprehensive list, a service blueprint, and a code scaffold to start the process (*cough* spec-kit *cough*). Manual debugging. Need I say any more? Old-school debugging with print()’s and breakpoints is dead. I spent countless hours learning to debug in a classroom and then later with my own software, stepping through execution line by line, reading through logs, and understanding what to look for; where correlation did and didn’t mean causation. I think back to my year at IBM as a fresh-faced intern in a cloud engineering team, where around 50% of my time was debugging different issues until it was sufficiently “narrowed down”, and then reading countless Stack Overflow posts figuring out the actual change I would need to make to a PowerShell script or Jenkins pipeline. Already in Azure, with the emergence of SRE agents, that debug process looks entirely different. The debug process for software even more so… #terminallastcommand WHY IS THIS NOT RUNNING? #terminallastcommand Review these logs and surface errors relating to XYZ. As I said: breakpoints are dead, for now at least. Caveat – Is this a good thing? One more deviation from the main core of the article if you would be so kind (if you are not as kind skip to the implementation walkthrough below). Is this actually a good thing? Is a software engineering degree now worthless? What if I love printf()? I don’t know is my answer today, at the start of 2026. Two things worry me: one theoretical and one very real. To start with the theoretical: today AI takes a significant amount of the “donkey work” away from developers. How does this impact cognitive load at both ends of the spectrum? The list that “donkey work” encapsulates is certainly growing. As a result, on one end of the spectrum humans are left with the complicated parts yet to be within an agent’s remit. This could have quite an impact on our ability to perform tasks. If we are constantly dealing with the complex and advanced, when do we have time to re-root ourselves in the foundations? Will we see an increase in developer burnout? How do technical people perform without the mundane or routine tasks? I often hear people who have been in the industry for years discuss how simple infrastructure, computing, development, etc. were 20 years ago, almost with a longing to return to a world where today’s zero trust, globally replicated architectures are a twinkle in an architect’s eye. Is constantly working on only the most complex problems a good thing? At the other end of the spectrum, what if the performance of AI tooling and agents outperforms our wildest expectations? Suddenly, AI tools and agents are picking up more and more of today’s complicated and advanced tasks. Will developers, architects, and organisations lose some ability to innovate? Fundamentally, we are not talking about artificial general intelligence when we say AI; we are talking about incredibly complex predictive models that can augment the existing ideas they are built upon but are not, in themselves, innovators. Put simply, in the words of Scott Hanselman: “Spicy auto-complete”. Does increased reliance on these agents in more and more of our business processes remove the opportunity for innovative ideas? For example, if agents were football managers, would we ever have graduated from Neil Warnock and Mick McCarthy football to Pep? Would every agent just augment a ‘lump it long and hope’ approach? We hear about learning loops, but can these learning loops evolve into “innovation loops?” Past the theoretical and the game of 20 questions, the very real concern I have is off the back of some data shared recently on Stack Overflow traffic. We can see in the diagram below that Stack Overflow traffic has dipped significantly since the release of GitHub Copilot in October 2021, and as the product has matured that trend has only accelerated. Data from 12 months ago suggests that Stack Overflow has lost 77% of new questions compared to 2022… Stack Overflow democratises access to problem-solving (I have to be careful not to talk in past tense here), but I will admit I cannot remember the last time I was reviewing Stack Overflow or furiously searching through solutions that are vaguely similar to my own issue. This causes some concern over the data available in the future to train models. Today, models can be grounded in real, tested scenarios built by developers in anger. What happens with this question drop when API schemas change, when the technology built for today is old and deprecated, and the dataset is stale and never returning to its peak? How do we mitigate this impact? There is potential for some closed-loop type continuous improvement in the future, but do we think this is a scalable solution? I am unsure. So, back to the question: “Is this a good thing?”. It’s great today; the long-term impacts are yet to be seen. If we think that AGI may never be achieved, or is at least a very distant horizon, then understanding the foundations of your technical discipline is still incredibly important. Developers will not only be the managers of their fleet of agents, but also the janitors mopping up the mess when there is an accident (albeit likely mopping with AI-augmented tooling). An AI First SDLC Today – The Reality Enough reflection and nostalgia (I don’t think that’s why you clicked the article), let’s start building something. For the rest of this article I will be building an AI-led, agent-powered software development lifecycle. The example I will be building is an AI-generated weather dashboard. It’s a simple example, but if agents can generate, test, deploy, observe, and evolve this application, it proves that today, and into the future, the process can likely scale to more complex domains. Let’s start with the entry point. The problem statement that we will build from. “As a user I want to view real time weather data for my city so that I can plan my day.” We will use this as the single input for our AI led SDLC. This is what we will pass to promptkit and watch our app and subsequent features built in front of our eyes. The goal is that we will: - Spec-kit to get going and move from textual idea to requirements and scaffold. - Use a coding agent to implement our plan. - A Quality agent to assess the output and quality of the code. - GitHub Actions that not only host the agents (Abstracted) but also handle the build and deployment. - An SRE agent proactively monitoring and opening issues automatically. The end to end flow that we will review through this article is the following: Step 1: Spec-driven development - Spec First, Code Second A big piece of realising an AI-led SDLC today relies on spec-driven development (SDD). One of the best summaries for SDD that I have seen is: “Version control for your thinking”. Instead of huge specs that are stale and buried in a knowledge repository somewhere, SDD looks to make them a first-class citizen within the SDLC. Architectural decisions, business logic, and intent can be captured and versioned as a product evolves; an executable artefact that evolves with the project. In 2025, GitHub released the open-source Spec Kit: a tool that enables the goal of placing a specification at the centre of the engineering process. Specs drive the implementation, checklists, and task breakdowns, steering an agent towards the end goal. This article from GitHub does a great job explaining the basics, so if you’d like to learn more it’s a great place to start (https://github.blog/ai-and-ml/generative-ai/spec-driven-development-with-ai-get-started-with-a-new-open-source-toolkit/). In short, Spec Kit generates requirements, a plan, and tasks to guide a coding agent through an iterative, structured development process. Through the Spec Kit constitution, organisational standards and tech-stack preferences are adhered to throughout each change. I did notice one (likely intentional) gap in functionality that would cement Spec Kit’s role in an autonomous SDLC. That gap is that the implement stage is designed to run within an IDE or client coding agent. You can now, in the IDE, toggle between task implementation locally or with an agent in the cloud. That is great but again it still requires you to drive through the IDE. Thinking about this in the context of an AI-led SDLC (where we are pushing tasks from Spec Kit to a coding agent outside of my own desktop), it was clear that a bridge was needed. As a result, I used Spec Kit to create the Spec-to-issue tool. This allows us to take the tasks and plan generated by Spec Kit, parse the important parts, and automatically create a GitHub issue, with the option to auto-assign the coding agent. From the perspective of an autonomous AI-led SDLC, Speckit really is the entry point that triggers the flow. How Speckit is surfaced to users will vary depending on the organisation and the context of the users. For the rest of this demo I use Spec Kit to create a weather app calling out to the OpenWeather API, and then add additional features with new specs. With one simple prompt of “/promptkit.specify “Application feature/idea/change” I suddenly had a really clear breakdown of the tasks and plan required to get to my desired end state while respecting the context and preferences I had previously set in my Spec Kit constitution. I had mentioned a desire for test driven development, that I required certain coverage and that all solutions were to be Azure Native. The real benefit here compared to prompting directly into the coding agent is that the breakdown of one large task into individual measurable small components that are clear and methodical improves the coding agents ability to perform them by a considerable degree. We can see an example below of not just creating a whole application but another spec to iterate on an existing application and add a feature. We can see the result of the spec creation, the issue in our github repo and most importantly for the next step, our coding agent, GitHub CoPilot has been assigned automatically. Step 2: GitHub Coding Agent - Iterative, autonomous software creation Talking of coding agents, GitHub Copilot’s coding agent is an autonom ous agent in GitHub that can take a scoped development task and work on it in the background using the repository’s context. It can make code changes and produce concrete outputs like commits and pull requests for a developer to review. The developer stays in control by reviewing, requesting changes, or taking over at any point. This does the heavy lifting in our AI-led SDLC. We have already seen great success with customers who have adopted the coding agent when it comes to carrying out menial tasks to save developers time. These coding agents can work in parallel to human developers and with each other. In our example we see that the coding agent creates a new branch for its changes, and creates a PR which it starts working on as it ticks off the various tasks generated in our spec. One huge positive of the coding agent that sets it apart from other similar solutions is the transparency in decision-making and actions taken. The monitoring and observability built directly into the feature means that the agent’s “thinking” is easily visible: the iterations and steps being taken can be viewed in full sequence in the Agents tab. Furthermore, the action that the agent is running is also transparently available to view in the Actions tab, meaning problems can be assessed very quickly. Once the coding agent is finished, it has run the required tests and, even in the case of a UI change, goes as far as calling the Playwright MCP server and screenshotting the change to showcase in the PR. We are then asked to review the change. In this demo, I also created a GitHub Action that is triggered when a PR review is requested: it creates the required resources in Azure and surfaces the (in this case) Azure Container Apps revision URL, making it even smoother for the human in the loop to evaluate the changes. Just like any normal PR, if changes are required comments can be left; when they are, the coding agent can pick them up and action what is needed. It’s also worth noting that for any manual intervention here, use of GitHub Codespaces would work very well to make minor changes or perform testing on an agent’s branch. We can even see the unit tests that have been specified in our spec how been executed by our coding agent. The pattern used here (Spec Kit -> coding agent) overcomes one of the biggest challenges we see with the coding agent. Unlike an IDE-based coding agent, the GitHub.com coding agent is left to its own iterations and implementation without input until the PR review. This can lead to subpar performance, especially compared to IDE agents which have constant input and interruption. The concise and considered breakdown generated from Spec Kit provides the structure and foundation for the agent to execute on; very little is left to interpretation for the coding agent. Step 3: GitHub Code Quality Review (Human in the loop with agent assistance.) GitHub Code Quality is a feature (currently in preview) that proactively identifies code quality risks and opportunities for enhancement both in PRs and through repository scans. These are surfaced within a PR and also in repo-level scoreboards. This means that PRs can now extend existing static code analysis: Copilot can action CodeQL, PMD, and ESLint scanning on top of the new, in-context code quality findings and autofixes. Furthermore, we receive a summary of the actual changes made. This can be used to assist the human in the loop in understanding what changes have been made and whether enhancements or improvements are required. Thinking about this in the context of review coverage, one of the challenges sometimes in already-lean development teams is the time to give proper credence to PRs. Now, with AI-assisted quality scanning, we can be more confident in our overall evaluation and test coverage. I would expect that use of these tools alongside existing human review processes would increase repository code quality and reduce uncaught errors. The data points support this too. The Qodo 2025 AI Code Quality report showed that usage of AI code reviews increased quality improvements to 81% (from 55%). A similar study from Atlassian RovoDev 2026 study showed that 38.7% of comments left by AI agents in code reviews lead to additional code fixes. LLM’s in their current form are never going to achieve 100% accuracy however these are still considerable, significant gains in one of the most important (and often neglected) parts of the SDLC. With a significant number of software supply chain attacks recently it is also not a stretch to imagine that that many projects could benefit from "independently" (use this term loosely) reviewed and summarised PR's and commits. This in the future could potentially by a specialist/sub agent during a PR or merge to focus on identifying malicious code that may be hidden within otherwise normal contributions, case in point being the "near-miss" XZ Utils attack. Step 4: GitHub Actions for build and deploy - No agents here, just deterministic automation. This step will be our briefest, as the idea of CI/CD and automation needs no introduction. It is worth noting that while I am sure there are additional opportunities for using agents within a build and deploy pipeline, I have not investigated them. I often speak with customers about deterministic and non-deterministic business process automation, and the importance of distinguishing between the two. Some processes were created to be deterministic because that is all that was available at the time; the number of conditions required to deal with N possible flows just did not scale. However, now those processes can be non-deterministic. Good examples include IVR decision trees in customer service or hard-coded sales routines to retain a customer regardless of context; these would benefit from less determinism in their execution. However, some processes remain best as deterministic flows: financial transactions, policy engines, document ingestion. While all these flows may be part of an AI solution in the future (possibly as a tool an agent calls, or as part of a larger agent-based orchestration), the processes themselves are deterministic for a reason. Just because we could have dynamic decision-making doesn’t mean we should. Infrastructure deployment and CI/CD pipelines are one good example of this, in my opinion. We could have an agent decide what service best fits our codebase and which region we should deploy to, but do we really want to, and do the benefits outweigh the potential negatives? In this process flow we use a deterministic GitHub action to deploy our weather application into our “development” environment and then promote through the environments until we reach production and we want to now ensure that the application is running smoothly. We also use an action as mentioned above to deploy and surface our agents changes. In Azure Container Apps we can do this in a secure sandbox environment called a “Dynamic Session” to ensure strong isolation of what is essentially “untrusted code”. Often enterprises can view the building and development of AI applications as something that requires a completely new process to take to production, while certain additional processes are new, evaluation, model deployment etc many of our traditional SDLC principles are just as relevant as ever before, CI/CD pipelines being a great example of that. Checked in code that is predictably deployed alongside required services to run tests or promote through environments. Whether you are deploying a java calculator app or a multi agent customer service bot, CI/CD even in this new world is a non-negotiable. We can see that our geolocation feature is running on our Azure Container Apps revision and we can begin to evaluate if we agree with CoPilot that all the feature requirements have been met. In this case they have. If they hadn't we'd just jump into the PR and add a new comment with "@copilot" requesting our changes. Step 5: SRE Agent - Proactive agentic day two operations. The SRE agent service on Azure is an operations-focused agent that continuously watches a running service using telemetry such as logs, metrics, and traces. When it detects incidents or reliability risks, it can investigate signals, correlate likely causes, and propose or initiate response actions such as opening issues, creating runbook-guided fixes, or escalating to an on-call engineer. It effectively automates parts of day two operations while keeping humans in control of approval and remediation. It can be run in two different permission models: one with a reader role that can temporarily take user permissions for approved actions when identified. The other model is a privileged level that allows it to autonomously take approved actions on resources and resource types within the resource groups it is monitoring. In our example, our SRE agent could take actions to ensure our container app runs as intended: restarting pods, changing traffic allocations, and alerting for secret expiry. The SRE agent can also perform detailed debugging to save human SREs time, summarising the issue, fixes tried so far, and narrowing down potential root causes to reduce time to resolution, even across the most complex issues. My initial concern with these types of autonomous fixes (be it VPA on Kubernetes or an SRE agent across your infrastructure) is always that they can very quickly mask problems, or become an anti-pattern where you have drift between your IaC and what is actually running in Azure. One of my favourite features of SRE agents is sub-agents. Sub-agents can be created to handle very specific tasks that the primary SRE agent can leverage. Examples include alerting, report generation, and potentially other third-party integrations or tooling that require a more concise context. In my example, I created a GitHub sub-agent to be called by the primary agent after every issue that is resolved. When called, the GitHub sub-agent creates an issue summarising the origin, context, and resolution. This really brings us full circle. We can then potentially assign this to our coding agent to implement the fix before we proceed with the rest of the cycle; for example, a change where a port is incorrect in some Bicep, or min scale has been adjusted because of latency observed by the SRE agent. These are quick fixes that can be easily implemented by a coding agent, subsequently creating an autonomous feedback loop with human review. Conclusion: The journey through this AI-led SDLC demonstrates that it is possible, with today’s tooling, to improve any existing SDLC with AI assistance, evolving from simply using a chat interface in an IDE. By combining Speckit, spec-driven development, autonomous coding agents, AI-augmented quality checks, deterministic CI/CD pipelines, and proactive SRE agents, we see an emerging ecosystem where human creativity and oversight guide an increasingly capable fleet of collaborative agents. As with all AI solutions we design today, I remind myself that “this is as bad as it gets”. If the last two years are anything to go by, the rate of change in this space means this article may look very different in 12 months. I imagine Spec-to-issue will no longer be required as a bridge, as native solutions evolve to make this process even smoother. There are also some areas of an AI-led SDLC that are not included in this post, things like reviewing the inner-loop process or the use of existing enterprise patterns and blueprints. I also did not review use of third-party plugins or tools available through GitHub. These would make for an interesting expansion of the demo. We also did not look at the creation of custom coding agents, which could be hosted in Microsoft Foundry; this is especially pertinent with the recent announcement of Anthropic models now being available to deploy in Foundry. Does today’s tooling mean that developers, QAs, and engineers are no longer required? Absolutely not (and if I am honest, I can’t see that changing any time soon). However, it is evidently clear that in the next 12 months, enterprises who reshape their SDLC (and any other business process) to become one augmented by agents will innovate faster, learn faster, and deliver faster, leaving organisations who resist this shift struggling to keep up.Beyond the Desktop: The Future of Development with Microsoft Dev Box and GitHub Codespaces
The modern developer platform has already moved past the desktop. We’re no longer defined by what’s installed on our laptops, instead we look at what tooling we can use to move from idea to production. An organisations developer platform strategy is no longer a nice to have, it sets the ceiling for what’s possible, an organisation can’t iterate it's way to developer nirvana if the foundation itself is brittle. A great developer platform shrinks TTFC (time to first commit), accelerates release velocity, and maybe most importantly, helps alleviate everyday frictions that lead to developer burnout. Very few platforms deliver everything an organization needs from a developer platform in one product. Modern development spans multiple dimensions, local tooling, cloud infrastructure, compliance, security, cross-platform builds, collaboration, and rapid onboarding. The options organizations face are then to either compromise on one or more of these areas or force developers into rigid environments that slow productivity and innovation. This is where Microsoft Dev Box and GitHub Codespaces come into play. On their own, each addresses critical parts of the modern developer platform: Microsoft Dev Box provides a full, managed cloud workstation. Dev Box gives developers a consistent, high-performance environment while letting central IT apply strict governance and control. Internally at Microsoft, we estimate that usage of Dev Box by our development teams delivers savings of 156 hours per year per developer purely on local environment setup and upkeep. We have also seen significant gains in other key SPACE metrics reducing context-switching friction and improving build/test cycles. Although the benefits of Dev Box are clear in the results demonstrated by our customers it is not without its challenges. The biggest challenge often faced by Dev Box customers is its lack of native Linux support. At the time of writing and for the foreseeable future Dev Box does not support native Linux developer workstations. While WSL2 provides partial parity, I know from my own engineering projects it still does not deliver the full experience. This is where GitHub Codespaces comes into this story. GitHub Codespaces delivers instant, Linux-native environments spun up directly from your repository. It’s lightweight, reproducible, and ephemeral ideal for rapid iteration, PR testing, and cross-platform development where you need Linux parity or containerized workflows. Unlike Dev Box, Codespaces can run fully in Linux, giving developers access to native tools, scripts, and runtimes without workarounds. It also removes much of the friction around onboarding: a new developer can open a repository and be coding in minutes, with the exact environment defined by the project’s devcontainer.json. That said, Codespaces isn’t a complete replacement for a full workstation. While it’s perfect for isolated project work or ephemeral testing, it doesn’t provide the persistent, policy-controlled environment that enterprise teams often require for heavier workloads or complex toolchains. Used together, they fill the gaps that neither can cover alone: Dev Box gives the enterprise-grade foundation, while Codespaces provides the agile, cross-platform sandbox. For organizations, this pairing sets a higher ceiling for developer productivity, delivering a truly hybrid, agile and well governed developer platform. Better Together: Dev Box and GitHub Codespaces in action Together, Microsoft Dev Box and GitHub Codespaces deliver a hybrid developer platform that combines consistency, speed, and flexibility. Teams can spin up full, policy-compliant Dev Box workstations preloaded with enterprise tooling, IDEs, and local testing infrastructure, while Codespaces provides ephemeral, Linux-native environments tailored to each project. One of my favourite use cases is having local testing setups like a Docker Swarm cluster, ready to go in either Dev Box or Codespaces. New developers can jump in and start running services or testing microservices immediately, without spending hours on environment setup. Anecdotally, my time to first commit and time to delivering “impact” has been significantly faster on projects where one or both technologies provide local development services out of the box. Switching between Dev Boxes and Codespaces is seamless every environment keeps its own libraries, extensions, and settings intact, so developers can jump between projects without reconfiguring or breaking dependencies. The result is a turnkey, ready-to-code experience that maximizes productivity, reduces friction, and lets teams focus entirely on building, testing, and shipping software. To showcase this value, I thought I would walk through an example scenario. In this scenario I want to simulate a typical modern developer workflow. Let's look at a day in the life of a developer on this hybrid platform building an IOT project using Python and React. Spin up a ready-to-go workstation (Dev Box) for Windows development and heavy builds. Launch a Linux-native Codespace for cross-platform services, ephemeral testing, and PR work. Run "local" testing like a Docker Swarm cluster, database, and message queue ready to go out-of-the-box. Switch seamlessly between environments without losing project-specific configurations, libraries, or extensions. 9:00 AM – Morning Kickoff on Dev Box I start my day on my Microsoft Dev Box, which gives me a fully-configured Windows environment with VS Code, design tools, and Azure integrations. I select my teams project, and the environment is pre-configured for me through the Dev Box catalogue. Fortunately for me, its already provisioned. I could always self service another one using the "New Dev Box" button if I wanted too. I'll connect through the browser but I could use the desktop app too if I wanted to. My Tasks are: Prototype a new dashboard widget for monitoring IoT device temperature. Use GUI-based tools to tweak the UI and preview changes live. Review my Visio Architecture. Join my morning stand up. Write documentation notes and plan API interactions for the backend. In a flash, I have access to my modern work tooling like Teams, I have this projects files already preloaded and all my peripherals are working without additional setup. Only down side was that I did seem to be the only person on my stand up this morning? Why Dev Box first: GUI-heavy tasks are fast and responsive. Dev Box’s environment allows me to use a full desktop. Great for early-stage design, planning, and visual work. Enterprise Apps are ready for me to use out of the box (P.S. It also supports my multi-monitor setup). I use my Dev Box to make a very complicated change to my IoT dashboard. Changing the title from "IoT Dashboard" to "Owain's IoT Dashboard". I preview this change in a browser live. (Time for a coffee after this hardwork). The rest of the dashboard isnt loading as my backend isnt running... yet. 10:30 AM – Switching to Linux Codespaces Once the UI is ready, I push the code to GitHub and spin up a Linux-native GitHub Codespace for backend development. Tasks: Implement FastAPI endpoints to support the new IoT feature. Run the service on my Codespace and debug any errors. Why Codespaces now: Linux-native tools ensure compatibility with the production server. Docker and containerized testing run natively, avoiding WSL translation overhead. The environment is fully reproducible across any device I log in from. 12:30 PM – Midday Testing & Sync I toggle between Dev Box and Codespaces to test and validate the integration. I do this in my Dev Box Edge browser viewing my codespace (I use my Codespace in a browser through this demo to highlight the difference in environments. In reality I would leverage the VSCode "Remote Explorer" extension and its GitHub Codespace integration to use my Codespace from within my own desktop VSCode but that is personal preference) and I use the same browser to view my frontend preview. I update the environment variable for my frontend that is running locally in my Dev Box and point it at the port running my API locally on my Codespace. In this case it was a web socket connection and HTTPS calls to port 8000. I can make this public by changing the port visibility in my Codespace. https://fluffy-invention-5x5wp656g4xcp6x9-8000.app.github.dev/api/devices wss://fluffy-invention-5x5wp656g4xcp6x9-8000.app.github.dev/ws This allows me to: Preview the frontend widget on Dev Box, connecting to the backend running in Codespaces. Make small frontend adjustments in Dev Box while monitoring backend logs in Codespaces. Commit changes to GitHub, keeping both environments in sync and leveraging my CI/CD for deployment to the next environment. We can see the Dev Box running local frontend and the Codespace running the API connected to each other, making requests and displaying the data in the frontend! Hybrid advantage: Dev Box handles GUI previews comfortably and allows me to live test frontend changes. Codespaces handles production-aligned backend testing and Linux-native tools. Dev Box allows me to view all of my files in one screen with potentially multiple Codespaces running in browser of VS Code Desktop. Due to all of those platform efficiencies I have completed my days goals within an hour or two and now I can spend the rest of my day learning about how to enable my developers to inner source using GitHub CoPilot and MCP (Shameless plug). The bottom line There are some additional considerations when architecting a developer platform for an enterprise such as private networking and security not covered in this post but these are implementation details to deliver the described developer experience. Architecting such a platform is a valuable investment to deliver the developer platform foundations we discussed at the top of the article. While in this demo I have quickly built I was working in a mono repository in real engineering teams it is likely (I hope) that an application is built of many different repositories. The great thing about Dev Box and Codespaces is that this wouldn’t slow down the rapid development I can achieve when using both. My Dev Box would be specific for the project or development team, pre loaded with all the tools I need and potentially some repos too! When I need too I can quickly switch over to Codespaces and work in a clean isolated environment and push my changes. In both cases any changes I want to deliver locally are pushed into GitHub (Or ADO), merged and my CI/CD ensures that my next step, potentially a staging environment or who knows perhaps *Whispering* straight into production is taken care of. Once I’m finished I delete my Codespace and potentially my Dev Box if I am done with the project, knowing I can self service either one of these anytime and be up and running again! Now is there overlap in terms of what can be developed in a Codespace vs what can be developed in Azure Dev Box? Of course, but as organisations prioritise developer experience to ensure release velocity while maintaining organisational standards and governance then providing developers a windows native and Linux native service both of which are primarily charged on the consumption of the compute* is a no brainer. There are also gaps that neither fill at the moment for example Microsoft Dev Box only provides windows compute while GitHub Codespaces only supports VS Code as your chosen IDE. It's not a question of which service do I choose for my developers, these two services are better together! *Changes have been announced to Dev Box pricing. A W365 license is already required today and dev boxes will continue to be managed through Azure. For more information please see: Microsoft Dev Box capabilities are coming to Windows 365 - Microsoft Dev Box | Microsoft LearnHow SRE Agent Pulls Logs from Grafana and Creates Jira Tickets Without Native Integrations
Your tools. Your workflows. SRE Agent adapts. SRE Agent natively integrates with PagerDuty, ServiceNow, and Azure Monitor. But your team might use Jira for incident tracking. Grafana for dashboards. Loki for logs. Prometheus for metrics. These aren't natively supported. That doesn't matter. SRE Agent supports MCP, the Model Context Protocol. Any MCP-compatible server extends the agent's capabilities. Connect your Grafana instance. Connect your Jira. The agent queries logs, correlates errors, and creates tickets with root cause analysis across tools that were never designed to talk to each other. The Scenario I built a grocery store app that simulates a realistic SRE scenario: an external supplier API starts rate limiting your requests. Customers see "Unable to check inventory" errors. The on-call engineer gets paged. The goal: SRE Agent should diagnose the issue by querying Loki logs through Grafana, identify the root cause, and create a Jira ticket with findings and recommendations. The app runs on Azure Container Apps with Loki for logs and Azure Managed Grafana for visualization. 👉 Deploy it yourself: github.com/dm-chelupati/grocery-sre-demo How I Set Up SRE Agent: Step by Step Step 1: Create SRE Agent I created an SRE Agent and gave it Reader access to my subscription Step 2: Connect to Grafana and Jira via MCP Neither MCP server had a remotely hosted option, and their stdio setup didn't match what SRE Agent supports. So I hosted them myself as Azure Container Apps: Grafana MCP Server — connects to my Azure Managed Grafana instance Atlassian MCP Server — connects to my Jira Cloud instance Now I have two endpoints SRE Agent can reach: https://ca-mcp-grafana.<env>.azurecontainerapps.io/mcp https://ca-mcp-jira.<env>.azurecontainerapps.io/mcp I added both to SRE Agent's MCP configuration as remotely hosted servers. Step 3: Create Sub-Agent with Tools and Instructions I created a sub-agent specifically for incident diagnosis with these tools enabled: Grafana MCP (for querying Loki logs) Atlassian MCP (for creating Jira tickets) Instructions were simple: You are expert in diagnosing applications running on Azure services. You need to use the Grafana tools to get the logs, metrics or traces and create a summary of your findings inside Jira as a ticket. use your knowledge base file loki-queries.md to learn about app configuration with loki and Query the loki for logs in Grafana. Step 4: Invoke Sub-Agent and Watch It Work I went to the SRE Agent chat and asked: @JiraGrafanaexpert: My container app ca-api-3syj3i2fat5dm in resource group rg-groceryapp is experiencing rate limit errors from a supplier API when checking product inventory. The agent: Queried Loki via Grafana MCP: {app="grocery-api"} |= "error" Found 429 rate limit errors spiking — 55+ requests hitting supplier API limits Identified root cause: SUPPLIER_RATE_LIMIT_429 from FreshFoods Wholesale API Created a Jira ticket: One prompt. Logs queried. Root cause identified. Ticket created with remediation steps. Making It Better: The Knowledge File SRE Agent can explore and discover how your apps are wired but you can speed that up. When querying observability data sources, the agent needs to learn the schema, available labels, table structures, and query syntax. For Loki, that means understanding LogQL, knowing which labels your apps use, and what JSON fields appear in logs. SRE Agent can figure things out, but with context, it gets there faster — just like humans. I created a knowledge file that gives the agent a head start: With this context, the agent knows exactly which labels to query, what fields to extract from JSON logs, and which query patterns to use 👉 See my full knowledge file How MCP Makes This Possible SRE Agent supports two ways to connect MCP servers: stdio — runs locally via command. This works for MCP servers that can be invoked via npx, node, or uvx. For example: npx -y @modelcontextprotocol/server-github. Remotely hosted — HTTP endpoint with streamable transport: https://mcp-server.example.com/sse or /mcp The catch: Not every MCP server fits these options out of the box. Some servers only support stdio but not the npx/node/uvx formats SRE Agent expects. Others don't offer a hosted endpoint at all. The solution: host them yourself. Deploy the MCP server as a container with an HTTP endpoint. That's what I did with Grafana MCP Server and Atlassian MCP Server, deployed both as Azure Container Apps exposing /mcp endpoints. Why This Matters Enterprise tooling is fragmented across Azure and non-Azure ecosystems. Some teams use Azure Monitor, others use Datadog. Incident tracking might be ServiceNow in one org and Jira in another. Logs live in Loki, Splunk, Elasticsearch and sometimes all three. SRE Agent meets you where you are. Azure-native tools work out of the box. Everything else connects via MCP. Your observability stack stays the same. Your ticketing system stays the same. The agent becomes the orchestration layer that ties them together. One agent. Any tool. Intelligent workflows across your entire ecosystem. Try It Yourself Create an SRE Agent Deploy MCP servers for your tools (Grafana, Atlassian) Create a sub-agent with the MCP tools connected Add a knowledge file with your app context Ask it to diagnose an issue Watch logs become tickets. Errors become action items. Context becomes intelligence. Learn More Azure SRE Agent documentation Azure SRE Agent blogs Grocery SRE Demo repo MCP specification Azure SRE Agent is currently in preview.
