Microsoft Ignite 2025 AI announcements: What software developers need to know
Igniting what’s next: What software development companies need to know about Microsoft’s AI announcements at Ignite 2025 The AI landscape took a major leap forward at Microsoft Ignite 2025, and for software development companies and digital natives, the announcements represent a massive opportunity: faster innovation, simplified agent development, access to enterprise‑ready AI platforms, and a dramatically expanded ecosystem to build on. This year, Microsoft introduced the era of agentic AI—and software companies are at the center of this shift. Ignite 2025 formally unveiled Microsoft Foundry, our unified platform for building, governing, and scaling intelligent agents. From new agent runtimes to multi‑agent orchestration, enterprise‑grade knowledge access, and one‑click publishing to Microsoft 365, the momentum creates one clear signal: 💡 AI assistants are becoming intelligent agents—and Foundry is the platform software companies will use to build them. Why Microsoft Ignite 2025 mattered for software companies Across every session, Microsoft doubled down on helping partners accelerate time‑to‑market with agentic AI solutions. Whether you’re building vertical apps, automation copilots, knowledge systems, or developer tools, the new capabilities in Foundry eliminate much of the heavy lifting associated with retrieval, orchestration, compliance, hosting, and model selection. Key themes this year from Azure AI: Unified agent platform across all Microsoft clouds Framework‑agnostic development (bring your own models, tools, or frameworks) Enterprise‑grade governance built into the lifecycle Open ecosystem and interoperability using MCP, A2A, OpenAPI Seamless distribution through Microsoft 365 and Teams Let’s break down what’s new—and what it means for your product strategy. Top announcements for software companies at Ignite 2025 Microsoft Foundry: A unified brand for AI agent development Azure AI Foundry is now Microsoft Foundry—a consolidated platform for building, deploying, and managing intelligent agents. For software companies, this means: One consistent developer experience Shared governance and compliance across products A more integrated ecosystem for publishing and distributing agentic solutions This rebrand isn’t cosmetic—it reflects Microsoft’s strategic shift to deliver a platform built explicitly for the next generation of AI agents. Introducing Foundry IQ: Your enterprise knowledge engine One of the most exciting announcements is Foundry IQ, a new engine that gives agents instant access to enterprise data from SharePoint, OneLake, ADLS, and the web, all governed by Purview. For software companies, this unlocks: Reliable, production‑grade knowledge retrieval without building RAG pipelines Consistent compliance and security models Faster customer onboarding with fewer integration gaps Foundry IQ is a game‑changer for teams who have spent months building retrieval layers or maintaining custom RAG components. Foundry Control Plane: Unified governance for all agents Now in public preview, the Foundry Control Plane enables teams to manage agents across frameworks, clouds, and environments. Highlights: Unified visibility and observability Built‑in security & compliance (Defender, Purview) Fleet‑wide monitoring for cost, health, and risk For software companies offering multi‑tenant solutions or operating in regulated industries, this dramatically simplifies the operational burden of managing AI agents. Agent Framework (public preview): SK + AutoGen, Unified The Microsoft Agent Framework, now in public preview, merges the strengths of Semantic Kernel and AutoGen into a single SDK for building durable, interoperable agents. Software companies gain: A consistent programming model Durable memory Strong interoperability with MCP, A2A, OpenAPI Framework‑agnostic design This is the developer foundation for future AI applications built on Microsoft clouds. Hosted Agents: Enterprise‑grade runtime, no infrastructure needed With Hosted Agents, teams can deploy custom‑code agents directly into a fully managed runtime—no containers, pipelines, or infra setup. What this enables for software companies: Faster deployment cycles Secure, autoscaling environments Simple onboarding for customer‑specific agents Observability and monitoring built in This drastically reduces the operational overhead many software companies face today. Multi‑agent workflows & connected intelligence Ignite 2025 introduced major advancements in multi‑agent orchestration: Built‑in memory across sessions A catalog of 1,000+ Microsoft & partner tools (with private catalogs for software companies) Visual and programmatic orchestration tools Enterprise‑ready coordination for long‑running workflows Foundry IQ for instant knowledge access This allows software companies to design more autonomous, intelligent, and interconnected systems—moving beyond assistants toward true digital workers. Model Router GA + Anthropic partnership expansion There are two major updates for model flexibility: Model Router GA Now supporting 11,000+ models, the router helps developers intelligently choose the best model for each task, optimizing both cost and performance. Anthropic Claude models in Foundry Claude Sonnet 4.5, Opus 4.1, and Haiku 4.5 are now integrated into Microsoft Foundry through an expanded partnership with Anthropic. This gives software companies more choice, capability, and model‑agnostic development paths. One‑click publishing to Microsoft 365 & Teams One of the biggest wins for software companies: Agents built in Foundry can now be published to Microsoft 365 and Teams Chat with one click. This means: Access to hundreds of millions of users Unified governance through Microsoft Admin Center Seamless integration with Copilot experiences For software companies, this is a massive new distribution channel. Why this matters for software development companies Ignite 2025 didn’t just introduce new products—it signaled a platform shift. software companies now have: A full-stack platform for agentic applications - From data access to orchestration, hosting, deployment, and compliance. A unified runtime and SDK - Reducing fragmentation and speeding up development cycles. Enterprise reach through Microsoft 365 - Making your agents as discoverable as apps. A rapidly expanding ecosystem - More models, more tools, more integration points. If you’re building AI-powered products, this is your moment. Get hands-on: Sessions & resources for software companies Here are links to top Ignite sessions to dive deeper. Build & Manage AI Apps with Your Agent Factory AI Agents in Azure AI Foundry: Ship Fast, Scale Fearlessly AI‑Powered Automation & Multi‑Agent Orchestration Agent Developer Guide for Foundry Agent Service The Future of RAG with Agentic Retrieval & AI Search What’s next: December Foundry Council Session Join us on Dec 18 for the Ignite Recap session through the Foundry Partner Council. It’s the best opportunity for software companies to: Get deeper into the new capabilities Share partner/DN feedback Join focus groups For more information about the December 18 session, contact foundrycouncil@microsoft.com or visit aka.ms/foundrycouncilNew in App Advisor: Guidance for resale enabled offers (REO)
The latest enhancement to App Advisor introduces guidance for resale enabled offers (REO), helping you understand where reseller-led distribution aligns with your offer strategy. Want to see if REO fits into your sales strategy for 2026? If you're just getting started with REO, you can learn how to: Assess REO as a new sales tool with other negotiated deals in App Advisor Prepare your offer and organization for reseller participation Follow improved, set-up REO steps in Partner Center Scale into new markets with less effort 👉 Go here to read our blog post on how to accelerate your sales growth with resale enabled offers (REO) through guidance in App Advisor.Accelerate your sales growth with resale enabled offers (REO) through guidance in App Advisor
Why start with App Advisor? If you’re looking to expand your sales reach quickly and efficiently, App Advisor helps clarify your options. It provides tailored guidance to help you understand resale enabled offers (REO) and determine whether this pathway to near global scale is right for your marketplace strategy. Microsoft Marketplace offers several ways to grow through partners, and choosing the right one can feel complex. App Advisor simplifies the decision, giving you clear, scenario‑based guidance on REO, Cloud Solution Provider (CSP), multi‑party offers (MPO), and customer private offers, so you can confidently pick the model that aligns with your goals. Grow globally with resale enabled offers Resale enabled offers (REO) open the channel-led marketplace opportunity for near-global scale. Many software companies like you rely on channel partnerships for the sales and implementation of their solution. With this feature, you can enable your channel partner(s) to sell on your behalf, creating a simplified pathway for recurring revenue and growth. For the channel, this helps unlock pre-committed cloud budget in new markets while also helping cut down implementation times as solutions are pre-configured to deploy on Azure. If you’ve been looking for a clearer, faster path to a channel-led sales motion, REO provides the structure and automation to help you grow. ough channels only continues to grow. Why resale enabled offers matter REO changes the way you can sell. It gives you a repeatable resale model inside Microsoft Marketplace to help you break through to new markets without adding overhead while channel partners maintain their customer relationships while getting the added value of Marketplace. The result is a simplified path to recurring revenue: one that aligns offer owners, channel partners, and customers around a more efficient transaction flow. The benefits of REO Resale enabled offers can help grow your bottom line with ease: Authorization to resell is nearly instantaneous, Your reach grows to match your reseller’s markets, Channel partners take on more of the sales execution, You only enable resale once. No repeated setup or engineering work required, Both you and your channel partner earn full Marketplace Billed Sales (MBS) credit, enabling you to maximize Marketplace Rewards benefits. These advantages make REO a strategic lever for you to move toward a broader channel-led distribution model while helping you stay agile, expanding your reach, and avoiding adding extra overhead. How resale enabled offers work You can offer a REO on any SaaS or Azure Virtual Machine (VM) offer. The REO experience is designed to be simple, structured, and predictable for both the offer owner and the reseller. You, as the offer owner, come to an agreement with a channel partner to sell your offer. You authorize this sale in Partner Center (once) and then your channel partner is empowered to sell your offer, either as a customer private offer or as a multi-party offer (MPO). With this additional way to sell, you’ll be able to scale without worrying about hiring more salespeople. Other ways to sell at scale With many great ways to sell through negotiated deals or channel partners within Microsoft Marketplace, it can sometimes be challenging to choose. If you’re not sure which options are right for your marketplace offers, App Advisor can help you choose. To discover the benefits of REO, Cloud Solution Provider (CSP), MPO, and customer private offers, and when to use which, see how to grow with negotiated deals and channel partners here. Ready to unlock channel-led scale? Resale enabled offers can create a faster, more predictable path for software companies that want to expand with ease through channel partners. With simplified resale authorization, broader reach, and shared sales credit, REO makes it easier to activate partners and grow your marketplace presence. Ready to explore your path to channel-led scale? Visit App Advisor to get started.Becoming a Frontier Firm: Accelerate custom app development with Quick-Start Development Toolkit
Frontier firms are moving faster to build and monetize AI apps and agents at scale. To help teams keep up, the Quick-Start Development Toolkit now gets you from idea to code in minutes with guided patterns, reference architecture, and deployable templates. If you’re starting your next AI app or agent, start here: Becoming a Frontier Firm: Accelerate custom app development with Quick-Start Development Toolkit | Microsoft Community HubBecoming a Frontier Firm: Accelerate custom app development with Quick-Start Development Toolkit
The theme of Ignite was undeniable: Frontier firms are transforming business with investments and projects developing AI apps and agents. And these aren’t just businesses using AI - they’re companies developing and monetizing AI apps and agents. The numbers are clear - here are a few compelling stats from a global study commissioned by Microsoft with the International Data Corporation (IDC) about Frontier firms: 67% are monetizing industry-specific AI use cases to boost revenue 58% use custom AI, and in the next two years, that will increase to 77% Those building agentic solutions will grow 3x in the next two years ROI is 3x higher for Frontier firms than slower adopters It’s no longer a question. Companies who get ahead, make and sell AI apps and agentic solutions. But it can be difficult to develop at the speed of AI. To answer the challenge of streamlining and shortening the development cycle, we’ve improved the Quick-Start Development Toolkit to help your team start coding in minutes. Getting simple guidance for custom application development To help your team go from idea to coding in minutes, we've introduced the Quick-Start Development Toolkit. Teams were spending too much time with false starts or hunting for AI app or agent code templates. With expert developer guidance, we created the Quick-Start Development patterns - a package that includes a sample solution reference diagram, custom code templates for your dev team to download and customize, and high-value resources to address common development challenges. We’ve also made it easier to find the right development pattern for your needs. Answer a few questions to see how to develop an AI app We’ve built an interactive wizard that makes it easy for software companies to go from thinking about AI or agentic solutions to solve a problem directly to creating custom code. The process is easy: Go to Quick-Start Development Toolkit Click on “Find the right pattern for your needs” Answer a few simple questions about your priority scenario, environment, and tools Land on a development pattern designed to help your team start coding in minutes With development patterns ranging from flexible AI app or agent development with Microsoft Foundry to multi-agent custom automation to integrating your data with Microsoft Fabric Unified Data Foundation, you’ll find a development pattern to get started on your next AI app or agent. Not the right fit? Keep looking at focused patterns, all created in partnership with Microsoft experts. If your project has a different focus, like migrating or replicating an AWS app to Azure or integrating Microsoft Security to an app, the Quick-Start Development Toolkit has development templates for these, too. Take the confusion out of how to make an app and then publish and monetize it After you're done developing, realize full ROI on your app or agent and help other companies advance their Frontier level by publishing and selling it on Microsoft Marketplace. Within each development pattern, you can get curated guidance from App Advisor to package, publish, and sell your app. Ready to get started with your next AI app project? Visit the Quick-Start Development Toolkit today!AI innovation takes center stage at Microsoft Ignite
Artificial intelligence is transforming how software companies build, scale, and deliver solutions. At Microsoft Ignite, we announced new tools and programs to help developers accelerate innovation responsibly, from AI-powered workflows and unified tools in Microsoft Foundry to Cohere’s language models on Azure. Plus, the global launch of Microsoft Marketplace brings the industry’s largest catalog of AI apps and agents, enabling partners to reach new customers and unlock growth. Explore the latest announcements and learn how to ship faster, scale confidently, and turn AI innovation into business impact. Read the full articleAccelerate your multi-cloud strategy with Azure storage
Looking to expand your AWS-based solution into Microsoft Azure? Discover how to map your existing storage architecture to Azure’s native services and unlock new performance, scalability, and marketplace opportunities. This guide breaks down key differences between AWS and Azure storage, offers migration best practices, and helps you align with Azure Marketplace requirements for a seamless transition. Read the full blog to explore storage migration paths, service comparisons, and tips for building a resilient, Azure-native deployment. Explore the article
New To The Community
Hello ISV Success Community, As a new member to the community, I decided to start with an introduction. I’m Aubin Bakana, Founder and CTIO (Chief Technology & Innovation Officer) of Baobab Logix LTD, now based in Leeds, UK. I lead technology and innovation, driving solutions that are secure, ethical, and intelligent. At Baobab Logix, we’re building future-ready platforms that empower businesses to thrive. One of our flagship innovations is KeepComm Intel, a next-generation contact center solution that combines AI-driven automation with human-in-the-loop architecture for speed, accuracy, and trust. As a Microsoft Azure Solutions Architect Expert, Harvard CS50 certified, and full-stack developer, I bring deep technical expertise and a vision for sustainable innovation. I’m here to connect, collaborate, and share insights with fellow innovators who believe in shaping technology for good. Looking forward to engaging with this amazing community and exploring opportunities to build impactful solutions together! thank you.SharePoint Embedded guide for software companies
Looking to accelerate your SaaS solution with SharePoint Embedded? This new blog post breaks down key success factors, positioning strategies, and how to align your architecture for maximum impact. Read the full article here: SharePoint Embedded guide for software companies: success factors, positioning & key insights | Microsoft Community HubSharePoint Embedded guide for software companies: success factors, positioning & key insights
Welcome to the definitive Q&A guide for software development companies exploring SharePoint Embedded for their SaaS applications. This blog series addresses the most frequently asked questions from our thriving software company community, drawing from real-world implementations across partner organizations spanning financial services, healthcare, manufacturing, and technology sectors. Whether you're building a multi-tenant document management platform, modernizing legacy systems, or creating industry-specific collaboration solutions, this guide provides practical insights into SharePoint Embedded's unique advantages for software company scenarios. From multi-tenant architecture patterns and customer data isolation to Office integration strategies and competitive positioning, we've compiled the essential knowledge you need to accelerate your development and go-to-market success. SharePoint Embedded represents a paradigm shift for software companies who have traditionally faced the choice between building complex storage infrastructure or compromising on enterprise-grade features. With its consumption-based pricing model, API-first design, and native Office integration, SharePoint Embedded enables software companies to deliver enterprise-ready document experiences while focusing on their core business logic and customer value. Q: What are the key success factors I should focus on as a software company using SharePoint Embedded? A: Based on our analysis of successful software company implementations, there are three critical success factors: Building a scalable document management platform is complicated and detracts from the business logic you want to focus on with your solution. Users are demanding modern collaboration tools that Microsoft Office provides at scale. SharePoint Embedded gives you the foundational tools and features that integrate with your solutions, providing you a competitive advantage. Software development companies can unlock significant value by building on SharePoint Embedded. Its distributed architecture empowers software companies to deliver scalable, multi-tenant solutions, ensuring each customer’s data is securely isolated within dedicated containers. By leveraging SharePoint Embedded, software companies can guarantee that compliance and data residency requirements are met directly in the customer’s own Microsoft 365 tenant, streamlining regulatory approvals and building customer trust. The platform’s flexible, consumption-based billing model aligns costs with actual usage, supporting growth and simplifying budgeting for both software companies and their customers. At the same time, software companies retain full control over their application code base, allowing them to innovate and differentiate their offerings, while Microsoft manages the underlying infrastructure, security, and compliance features. Q: How do I position SharePoint Embedded against competitors in sales situations? A: SharePoint Embedded offers unique competitive advantages across different competitor categories: Against Pure Storage Solutions: Native Office Integration: Unmatched co-authoring and collaboration experiences Enterprise Security: Built-in compliance and governance vs. costly add-on features Microsoft Ecosystem: Leverage customers' existing Microsoft investments Software company-Focused APIs: Purpose-built for integration vs. consumer-focused APIs Against Building Custom Storage: Faster Time to Market: Significantly reduce development time Enterprise Features: Compliance, security, and scale built-in Office Integration: Impossible to replicate the native Office experience independently Global Infrastructure: Microsoft's global scale without operational overhead Against SharePoint Online: True Multi-Tenancy: Better customer isolation and independent scaling Consumption Pricing: Costs align with customer success vs. per-user licensing API-First Design: Developer-friendly vs. SharePoint customization complexity No Limitations: Independent scaling without site collection or storage quotas Q: Is the content stored in SharePoint Embedded AI ready? A: When you ingest documents into SharePoint Embedded, they are automatically added to the platform’s search and semantic indexes. This seamless integration ensures that your content is immediately available for advanced AI capabilities, such as intelligent search, document automation, and content summary. As a result, users can quickly benefit from AI-driven insights and enhanced discovery, making collaboration and workflow automation more powerful and efficient across their teams. AI Ready by Design: SharePoint Embedded provides secure, structured, and highly accessible data storage, ensuring content is ready for AI integration from the start. Robust APIs & Easy Integration: The platform’s powerful APIs and seamless Microsoft ecosystem integration make it simple to connect content to AI services like Azure AI Foundry and Microsoft 365 Copilot. Advanced Capabilities: Organizations can enable advanced search, automation, and generative AI scenarios, leveraging their information in new, intelligent ways. Enterprise-Grade Compliance & Security: Content remains protected with built-in security and compliance, crucial for enterprise adoption of AI-powered workflows. Empowering Business Value: This foundation allows businesses to unlock added value from their content and drive smarter, more efficient operations. Q: What are the key talking points that resonate with enterprise customers? A: For software development companies, these value propositions drive success with enterprise audiences: Onboard your application: Easily deploy your solution through the Microsoft Marketplace to your customer tenant. Content lives in your customer's tenant: Software companies can leverage built-in compliance and security features to speed up enterprise sales cycles and meet stringent requirements. You control the billing: Software companies can grow alongside their customers, with consumption pricing that supports expansion and rewards success. Your customers security posture is honored: When your solution is deployed to customer tenants, it will inherit all the security, compliance and governance they have configured. Content is always maintained in the geo they specify. Risk Reduction for software companies: By utilizing Microsoft’s infrastructure and security, software companies can reassure enterprise customers and minimize operational risk. Q: How do I get started building a POC for my software development companies' solution? A: Follow this proven software company-focused POC approach that has delivered success across our partner ecosystem: Getting started is easy: Install the Visual Studio Code extension and start a 30 day trial of SharePoint Embedded. For longer development cycles that allow you to simulate a real production environment, configure SharePoint Embedded without any storage or throughput limitations. Software Development Company Development Lifecycle for Re-Platforming on SharePoint Embedded Phase 1: Technical Foundation – Begin by establishing a secure, multi-tenant architecture using SharePoint Embedded’s container model to ensure robust customer data isolation. Integrate with Microsoft Office experiences to provide seamless co-authoring and collaboration, a key customer demand. Validate authentication flows for enterprise-grade user security and conduct thorough performance testing to guarantee fast, reliable document access at scale. Phase 2: Business Alignment – Move beyond technical validation to align your solution with real-world customer scenarios. Test end-to-end workflows and migrate sample data from legacy systems, ensuring the platform meets customers’ expectations for business continuity. Collect hands-on feedback from customer users to refine user experience and validate your pricing model based on projected usage, addressing concerns around cost predictability and ROI. Phase 3: Production Readiness – Prepare your solution for launch by executing a comprehensive security and compliance review, leveraging Microsoft’s built-in controls to address enterprise requirements. Perform scale testing with production-sized datasets and user groups to ensure reliability under peak loads. Establish monitoring, alerting, and support processes to deliver a consistent operational experience. Finally, enable your sales and onboarding teams with go-to-market resources, ensuring a smooth transition for customers migrating to your new platform. Key Success Metrics That Address Customer Demands: Verified customer data isolation for privacy and compliance High user adoption of Office integration, satisfying customers’ desire for familiar productivity tools Consistent fast document loading, meeting performance expectations Validated cost model based on real usage, delivering value and transparency to customers By following this development lifecycle, software companies can re-platform on SharePoint Embedded with confidence, addressing top customer demands for security, scalability, seamless Office integration, and predictable costs—all while accelerating time to market and driving adoption. Q: How can I gain additional customers by having my app in the Microsoft Marketplace? A: Listing your app in the Microsoft Marketplace opens the door for software companies to reach new customers and increase sales by leveraging Microsoft’s ecosystem and global reach. The Marketplace acts as a powerful channel to showcase your solution to millions of enterprise buyers who trust Microsoft to deliver secure, reliable products. Technical Resources to Drive Adoption: ISV Success Program – Get expert guidance to optimize your app for Marketplace visibility and customer engagement, ensuring your solution stands out and is ready for enterprise adoption. Solution Architect Reviews – Receive feedback from Microsoft experts to ensure your product meets the needs of customers and is positioned for growth in the Marketplace. Preview Access – Early access to new features helps you differentiate your app, attracting customers looking for cutting-edge solutions. Software Development Company Documentation – Access to tailored implementation guides ensures your SaaS offering is Marketplace-ready and easy for customers to deploy. Go-to-Market Support to Accelerate Sales: Marketplace Listing – Promote your app to a global audience, driving qualified leads and expanding your reach beyond your existing customer base. Partner Development Managers – Benefit from dedicated business support and introductions to new customers in strategic verticals. Co-sell Opportunities – Collaborate with Microsoft’s sales teams for joint selling, increasing your exposure and boosting sales potential. Industry Programs – Join vertical-specific programs and events to connect directly with customers seeking solutions in your area of expertise. In summary, Microsoft Marketplace empowers software companies to accelerate customer acquisition and drive sales growth by providing broad exposure, technical and business support, and opportunities for collaboration with Microsoft’s network. Have more questions or want to talk to the team, contact us at SharePointEmbedded@microsoft.com
