What's new in Azure App Service at #MSBuild 2026
At Microsoft Build 2026, Azure App Service introduced a powerful set of updates designed to help organizations accelerate their journey into AI, without increasing complexity or cost. These innovations focus on one clear business outcome: enabling teams to build, deploy, and scale AI-powered applications and agents faster, more securely, and with greater operational efficiency. A key highlight is the new Easy AI experience, which allows existing web apps to become AI-ready with no rearchitecting required. With capabilities like built-in Model Context Protocol (MCP), developers can instantly expose app functionality as agent-ready endpoints, enabling AI agents to interact with business logic securely and seamlessly. This dramatically reduces development time, allowing teams to move from idea to intelligent application in a fraction of the usual effort. Security and compliance are also strengthened with the general availability of Isolated v4 for Azure App Service Environments, delivering improved performance for customers that need single-tenant isolation and strong data residency guarantees. For enterprises operating in regulated industries, this ensures AI applications meet strict governance requirements without sacrificing scalability or speed. For modernization scenarios, Managed Instance on Azure App Service simplifies the migration of legacy applications, including those with OS-level dependencies. Faster restarts, enhanced diagnostics, and AI-assisted migration workflows help organizations modernize existing systems cost-effectively—avoiding expensive rewrites while unlocking AI capabilities. Recent updates include an AI-assisted approach to migrating legacy IIS applications using a multi-agent workflow powered by MCP. Managed Instance is supported on both Premium v4 and Isolated v4, laying the foundation for a modern compute infrastructure across the board. Operational efficiency is further enhanced through platform and CLI improvements designed for the “agent era.” From structured deployment diagnostics to optimized Python pipelines delivering faster deployments, these updates reduce friction and infrastructure overhead, lowering total cost of ownership. Together, these innovations position Azure App Service as a future-ready platform where businesses can rapidly build intelligent, agent-driven applications securely, efficiently, and at scale. 👉 Learn more in the full announcement: Deep dive into Azure App Service Build 2026 updatesAzure Functions MCP Extension: What's New at Build 2026
The Azure Functions MCP extension has had a breakout year! Since its initial preview, the extension has grown from a single trigger type into a full-featured platform for building remote MCP servers: with tool, resource, and prompt triggers across multiple languages, MCP Apps for interactive UIs, built-in MCP authentication, and feature enhancements. Here's what's new and what it means for developers building MCP servers on Azure Functions. The full MCP primitive set: Tools, resources, and prompts When the MCP extension first shipped, it supported tool triggers. Declare a function as an MCP tool, and any MCP client can discover and call it. That was the starting point. Since then, we've shipped the remaining MCP primitives: Resource triggers: expose a function as an MCP resource. Prompt triggers: expose a function as an MCP prompt, letting clients request structured prompt templates from your server. Like tool triggers, resource and prompt triggers are supported in multiple languages including .NET, Java, Python, TypeScript, and JavaScript. MCP Apps: interactive UI from your MCP server MCP Apps let your tools return interactive user interfaces instead of plain text. Combine tool triggers with resource triggers, and your MCP server can serve rich, rendered experiences to MCP-aware clients. The Azure Functions MCP extension supports MCP Apps natively, meaning the same function app that exposes tools and resources can also serve UI components. The launch blog post on the Azure Apps Blog walked through the pattern in detail. For .NET developers, the new fluent builder API (available in the latest NuGet release) makes it easier to compose MCP Apps by chaining tool and resource definitions in a declarative style. MCP authentication The extension supports built-in MCP authentication, implementing the requirements of the MCP auth spec. All samples in the aka.ms/remote-mcp repo enable built-in MCP auth by default with Microsoft Entra ID as the identity provider. Samples have also been updated to demonstrate how to exchange tokens in the On-Behalf-Of (OBO) flow, so your MCP tools can access downstream APIs using the invoking user's identity. Auth configuration in the Azure portal: Preview at Build is a one-click experience in the Azure portal for configuring built-in MCP auth. No more manual app registration creating, configuration and wiring to the server. Just open your server app on the portal and click to enable MCP auth. Try it out! Feature enhancements Beyond the headline primitives and auth, the extension has shipped a steady stream of capabilities the past few months. The following are the notable additions. Structured content Structured content lets you return machine-readable JSON metadata alongside your tool's response via the `structuredContent` field. Clients that support it can programmatically consume the data (e.g. parse fields, render tables, drive downstream logic) rather than just displaying text. Clients that don't support it still get the regular content blocks as a fallback. Rich content types Tools aren't limited to returning plain text. The extension supports the full set of MCP content block types, e.g. `TextContent`, `ImageContent`, `AudioContent`, `ResourceLink`, and `EmbeddedResource`, so your tools can return images, audio clips, references to resources, and inline file content alongside text. Input and output schemas `WithInputSchema` and `WithOutputSchema` give you explicit control over the JSON schemas advertised for your tools. This is especially useful when the auto-generated schema from function parameters doesn't capture the full contract. For example, when your tool accepts a complex nested object or returns a specific shape that clients depend on. Input and output schemas are currently supported in .NET, with support for other languages coming soon. builder.ConfigureMcpTool("SearchDocs") .WithOutputSchema(""" { "type": "object", "properties": { "results": { "type": "array", "items": { "type": "string" } }, "query": { "type": "string" } }, "required": ["results", "query"] } """); Fluent configuration APIs in .NET A set of fluent builder APIs that let you configure MCP primitives declaratively in `Program.cs`: ConfigureMcpTool: add properties, metadata, input/output schemas, or promote a tool to an MCP App ConfigureMcpResource: attach metadata to resources ConfigureMcpPrompt: define prompt arguments and metadata builder.ConfigureMcpTool("sayhello") .WithProperty("name", McpToolPropertyType.String, "Name of the user", required: true) .WithMetadata("ui", new { resourceUri = "ui://index.html" }); What's next Usage of the MCP extension has grown steadily since its preview launch. Tool execution volume has increased 15x over the past several months as more customers move from experimentation to production. As adoption grows, so do the expectations. Developers building production MCP servers are hitting real friction around auth complexity, client configuration, and observability. We're continuing to invest in the extension to address these gaps and help customers be more successful building and hosting MCP servers on Azure Functions. Here's where we're focusing next. Continued auth simplification Auth remains the biggest barrier to getting an MCP server into production. We'll work on: Smoother client setup: making it easier to connect any MCP client to an authenticated Azure Functions MCP server, not just VS Code. Simplified OBO flow: streamlining the experience of On-Behalf-Of authentication so developers can delegate user identity to downstream services with less configuration. Our goal: the secure path should be the easy path. Deeper integration with Microsoft Foundry We'll build tighter integration between Azure Functions MCP servers and Microsoft Foundry. This includes surfacing MCP servers in Foundry Toolbox, a new feature introduced to help Foundry agents discover and consume tools from a single endpoint. Developers will be able to publish an MCP server from Functions and have it available to Foundry agents through Toolbox without manual endpoint configuration. Continued feature enhancement We prioritize based on feedback from the community raised in our GitHub repo. For example, support for streaming output and pagination are top items in our backlog today based on user demand. We also track the MCP spec's evolution closely and will continue shipping support for strategic features as they land. Examples of proposals we're following: MCP Tasks: the Tasks extension (SEP-2663) defines a standard pattern for async, long-running tool calls with durable task handles. This replaces hand-rolled polling patterns and aligns well with Functions' execute-and-return model. Stateless MCP: SEP-2575 proposes removing the mandatory initialization handshake, which is a natural fit for serverless platforms like Azure Functions where fresh instances can handle any request. Have something you'd like us to prioritize? Let us know by filing a request on GitHub. Get started Samples: Samples showcasing most up-to-date features: aka.ms/remote-mcp Documentation: Model Context Protocol for Azure Functions MCP Extension GitHub repo: Azure Functions MCP ExtensionClosing the AI-readiness gap with agentic modernization
Legacy debt is widening the AI-readiness gap Legacy systems and mounting tech debt aren't just slowing your AI agenda — they're quietly stealing its potential. Aging architectures, and complex, decades-old applications, databases, and infrastructure weren't designed for high performance, complex, dynamically scaling agentic workloads. The longer legacy lasts, the wider the gap between AI ambition and AI-readiness. This year at Microsoft Build 2026, we're taking our biggest step yet toward closing it. In a recent Forrester study, 94% of IT leaders ranked modernization as a top priority for their AI strategy, yet only 43% of their portfolios have been modernized on average, and only 32% are AI-ready.¹ Ambition for AI adoption is at a high, yet most are held back by the underlying legacy code, technical debt, and modernization backlog. Forrester’s data underscores it: on average, 35% of modernization projects stall due to legacy constraints, 65% cite security and compliance as the top challenge, 58% are held back by the complexity of monolithic applications, and 59% struggle with finding skilled talent to execute.¹ The result: AI initiatives that stall before they ever reach production. Modernization is a key step to move towards AI production; and it’s typically easier said than done. The growing problem is how to execute at the pace and scale that AI now demands. That’s why IT operators, architects, application owners, and developers are turning to agents to eliminate legacy toil, connect workstreams across teams, and scale their modernization efforts while customizing how they modernize. The first agentic end-to-end modernization solution that unifies IT and developer workflows Azure Copilot migration agent and GitHub Copilot modernization agent create the first agentic, end-to-end modernization solution that unifies IT and developer workflows— helping organizations close the AI-readiness gap by connecting discovery, assessment, planning, code transformation, governance, deployment, and observability into one continuous system. Built into the tools IT teams and developers already use, the solution combines estate-scale planning with GitHub-native execution, application-aware migration, broad workload coverage across apps, infrastructure, and data, and enterprise-grade privacy, security, and flexibility— so modernization becomes a governed, scalable, portfolio-level capability across teams, rather than a series of one-off projects. Building the estate-wide modernization plan Azure Copilot migration agent (public preview) brings AI to every step of estate modernization planning - from discovery and assessment to dependency mapping, ROI analysis, and wave planning - reducing months of manual analysis to minutes. For organizations with a clear picture of their estate, the migration agent accelerates the path from inventory to wave plan. For organizations that don’t, the migration agent helps them build that picture from scratch: what is running, what depends on what, what to move, what to modernize, what to retire, and in what order. By creating business-goal oriented estate plans, generating ROI analysis in minutes, and aligning IT and development teams through connected workflows, it helps enterprises move mission critical applications, databases, and infrastructure onto Azure faster and more confidently, with a continuous, data-driven view of what to modernizing next. Freeing teams from the legacy tax GitHub Copilot modernization agent, now generally available, empowers application owners, architects, and developers to scale modernization across their entire application portfolio. Operated from the CLI, the modernization agent acts as an orchestrator that simultaneously: Assesses readiness across multiple applications at once Plans application-specific modernization journeys and executes the identified migration tasks Surfaces deep code and dependency-level insights and recommendations Automates upgrades for Java and .NET applications Recommends Azure services aligned to organizational standards With its native design into GitHub Copilot, the modernization agent creates issues, pull requests, and shareable assessment reports for each application as it works. Architects and application owners retain visibility and governance from a single view, while developers receive clear, prioritized work they can execute from the agent or finish directly in their preferred editor. Behind the scenes, the modernization agent coordinates with GitHub Copilot's coding agent to complete tasks asynchronously across repositories, with a full monitoring and audit trail in GitHub's Agent HQ. The result is a connected planning-to-execution flow that finally makes modernization at scale possible, without sacrificing oversight or control. In just a few months, the modernization agent has already accelerated modernization up to 4x faster across hundreds of thousands of legacy .NET and Java applications at hundreds of customers. Enterprise level customization Every application is built and operated as uniquely as the business it serves. The path to modernization must be equally unique: tailored to each application's architecture, dependencies, and intent. At Build, we're excited to announce the general availability of custom skills for the modernization agent. Custom skills (GA) let developers teach the modernization agent how their organization works by encoding proprietary patterns, libraries, Azure best practices, and migration approaches once, then reusing them across every run. Each skill is authored as a skill.md file with build instructions, sample usage, reference APIs, and more, and is built on open-standard agent skills so teams aren't locked into a proprietary format. With custom skills, developers can equip the modernization agent with: Business-specific context, knowledge, intent, and migration approaches for application-aware guidance Centralized skills library to reuse and repeat tasks across the portfolio Full traceability for every skill used in generating the modernization plan The result is portfolio-scale execution with application-level specificity, in the same agentic workflow. And because skills live in a shared library, teams can reuse and repeat for faster, more consistent modernization outcomes aligned with the application's goals. Innovating while closing the AI-readiness gap GitHub Copilot is already dramatically reducing technical debt in real world environments, helping to close the AI readiness gap and, more importantly, innovate faster with AI. Organizations that adopt agentic modernization can not only close their AI-readiness gap, they can also make modernization a continuous process, allowing them to more readily integrate AI into existing business applications and services Ready to reimagine your applications? Join us at Microsoft Build this year, online or in person, to see our product teams reimagine applications live with GitHub Copilot modernization, share customer success, and empower you to modernize with confidence in days, not months. Join online or in person for Build session BRK220 on Wednesday 9AM PST Learn more about GitHub Copilot modernization: aka.ms/ghcp-modernization Dive deeper at the virtual .NET Agentic Modernization Day on June 16 th : aka.ms/dotnetday/rsvp ¹ Forrester’s Q1 2026 Cloud and AI Application Modernization Survey [E-66670]Azure Functions MCP extension now supports MCP Prompts
We are thrilled to announce that the MCP prompt trigger is now available in public preview in the Azure Functions MCP extension! With this release, the extension now supports all three core MCP server primitives - tools, resources, and prompts, giving you a complete platform for building rich MCP servers on Azure Functions. In case you missed it, the MCP resource trigger is generally available for serving resources and building interactive UIs in MCP Apps. What are MCP Prompts In the Model Context Protocol (MCP), prompts are reusable templates that allow server authors to provide parameterized prompts for a domain, or showcase how to best use the MCP server. Prompts are user-controlled in that they require explicit invocation rather than automatic triggering, and can be context-aware, referencing available resources and tools to create comprehensive workflows. Unlike tools (which are model-controlled) and resources (which are application-controlled), prompts are exposed from servers to clients so users can explicitly select them. Applications typically expose prompts through slash commands, command palettes, dedicated UI buttons, or context menus. How It Works In Python, defining a prompt is as simple as decorating a function. Here's a prompt that returns a code review checklist: app.mcp_prompt_trigger( arg_name="context", prompt_name="code_review_checklist", description="Returns a structured code review checklist prompt for evaluating code changes." ) def code_review_checklist(context: func.PromptInvocationContext) -> str: logging.info("Code review checklist prompt invoked.") return """You are a senior software engineer performing a code review. Use the following checklist to evaluate the code: 1. **Correctness** — Does the code do what it's supposed to? 2. **Error Handling** — Are edge cases and failures handled? 3. **Security** — Are there any vulnerabilities (injection, auth, secrets)? 4. **Performance** — Are there obvious inefficiencies? 5. **Readability** — Is the code clear and well-named? 6. **Tests** — Are there adequate tests for the changes? Provide your feedback in a structured format with a severity level (critical, warning, suggestion) for each finding.""" Prompts can accept arguments, allowing clients to customize the generated message. Here's a prompt that generates documentation with configurable parameters: app.mcp_prompt_trigger( arg_name="context", prompt_name="generate_documentation", prompt_arguments=[ func.PromptArgument("function_name", "The name of the function to document.", required=False), func.PromptArgument("style", "Documentation style: 'concise', 'detailed', or 'tutorial'.", required=False) ], description="Generates API documentation for a function. Arguments are configured in Program.cs." ) def generate_documentation(context: func.PromptInvocationContext) -> str: function_name = context.arguments.get("function_name", "(unknown)") style = context.arguments.get("style", "concise") logging.info(f"Generate docs prompt invoked for function: {function_name}") return f"""Generate API documentation for the function named **{function_name}**. Documentation style: **{style}** Include the following sections: - **Description** — What the function does. - **Parameters** — List each parameter with its type and purpose. - **Return Value** — What the function returns. - **Example Usage** — A short code example showing how to call it.""" Checkout the Get Started section for the complete sample and samples in different languages. Why Azure Functions Azure Functions is the ideal platform for hosting remote MCP servers because of its built-in MCP authentication, event-driven scaling from 0 to N, and serverless billing. This ensures your agentic tools are secure, cost-effective, and ready to handle any load. With the MCP extension, you focus on implementing the primitives you want to expose, tools, resources, and prompts, instead of worrying about MCP protocol details and server logistics. Get Started You can start building today using our quickstarts and samples: Python TypeScript .NET Java Documentation Azure Functions MCP extension overview Prompt trigger We'd Love to Hear from You! Let us know your thoughts about the new prompt trigger. What kinds of prompts are you building for your MCP servers? What would you like us to prioritize next? Share your feedback in our GitHub repo.Azure Functions Ignite 2025 Update
Azure Functions is redefining event-driven applications and high-scale APIs in 2025, accelerating innovation for developers building the next generation of intelligent, resilient, and scalable workloads. This year, our focus has been on empowering AI and agentic scenarios: remote MCP server hosting, bulletproofing agents with Durable Functions, and first-class support for critical technologies like OpenTelemetry, .NET 10 and Aspire. With major advances in serverless Flex Consumption, enhanced performance, security, and deployment fundamentals across Elastic Premium and Flex, Azure Functions is the platform of choice for building modern, enterprise-grade solutions. Remote MCP Model Context Protocol (MCP) has taken the world by storm, offering an agent a mechanism to discover and work deeply with the capabilities and context of tools. When you want to expose MCP/tools to your enterprise or the world securely, we recommend you think deeply about building remote MCP servers that are designed to run securely at scale. Azure Functions is uniquely optimized to run your MCP servers at scale, offering serverless and highly scalable features of Flex Consumption plan, plus two flexible programming model options discussed below. All come together using the hardened Functions service plus new authentication modes for Entra and OAuth using Built-in authentication. Remote MCP Triggers and Bindings Extension GA Back in April, we shared a new extension that allows you to author MCP servers using functions with the MCP tool trigger. That MCP extension is now generally available, with support for C#(.NET), Java, JavaScript (Node.js), Python, and Typescript (Node.js). The MCP tool trigger allows you to focus on what matters most: the logic of the tool you want to expose to agents. Functions will take care of all the protocol and server logistics, with the ability to scale out to support as many sessions as you want to throw at it. [Function(nameof(GetSnippet))] public object GetSnippet( [McpToolTrigger(GetSnippetToolName, GetSnippetToolDescription)] ToolInvocationContext context, [BlobInput(BlobPath)] string snippetContent ) { return snippetContent; } New: Self-hosted MCP Server (Preview) If you’ve built servers with official MCP SDKs and want to run them as remote cloud‑scale servers without re‑writing any code, this public preview is for you. You can now self‑host your MCP server on Azure Functions—keep your existing Python, TypeScript, .NET, or Java code and get rapid 0 to N scaling, built-in server authentication and authorization, consumption-based billing, and more from the underlying Azure Functions service. This feature complements the Azure Functions MCP extension for building MCP servers using the Functions programming model (triggers & bindings). Pick the path that fits your scenario—build with the extension or standard MCP SDKs. Either way you benefit from the same scalable, secure, and serverless platform. Use the official MCP SDKs: # MCP.tool() async def get_alerts(state: str) -> str: """Get weather alerts for a US state. Args: state: Two-letter US state code (e.g. CA, NY) """ url = f"{NWS_API_BASE}/alerts/active/area/{state}" data = await make_nws_request(url) if not data or "features" not in data: return "Unable to fetch alerts or no alerts found." if not data["features"]: return "No active alerts for this state." alerts = [format_alert(feature) for feature in data["features"]] return "\n---\n".join(alerts) Use Azure Functions Flex Consumption Plan's serverless compute using Custom Handlers in host.json: { "version": "2.0", "configurationProfile": "mcp-custom-handler", "customHandler": { "description": { "defaultExecutablePath": "python", "arguments": ["weather.py"] }, "http": { "DefaultAuthorizationLevel": "anonymous" }, "port": "8000" } } Learn more about MCPTrigger and self-hosted MCP servers at https://aka.ms/remote-mcp Built-in MCP server authorization (Preview) The built-in authentication and authorization feature can now be used for MCP server authorization, using a new preview option. You can quickly define identity-based access control for your MCP servers with Microsoft Entra ID or other OpenID Connect providers. Learn more at https://aka.ms/functions-mcp-server-authorization. Better together with Foundry agents Microsoft Foundry is the starting point for building intelligent agents, and Azure Functions is the natural next step for extending those agents with remote MCP tools. Running your tools on Functions gives you clean separation of concerns, reuse across multiple agents, and strong security isolation. And with built-in authorization, Functions enables enterprise-ready authentication patterns, from calling downstream services with the agent’s identity to operating on behalf of end users with their delegated permissions. Build your first remote MCP server and connect it to your Foundry agent at https://aka.ms/foundry-functions-mcp-tutorial. Agents Microsoft Agent Framework 2.0 (Public Preview Refresh) We’re excited about the preview refresh 2.0 release of Microsoft Agent Framework that builds on battle hardened work from Semantic Kernel and AutoGen. Agent Framework is an outstanding solution for building multi-agent orchestrations that are both simple and powerful. Azure Functions is a strong fit to host Agent Framework with the service’s extreme scale, serverless billing, and enterprise grade features like VNET networking and built-in auth. Durable Task Extension for Microsoft Agent Framework (Preview) The durable task extension for Microsoft Agent Framework transforms how you build production-ready, resilient and scalable AI agents by bringing the proven durable execution (survives crashes and restarts) and distributed execution (runs across multiple instances) capabilities of Azure Durable Functions directly into the Microsoft Agent Framework. Combined with Azure Functions for hosting and event-driven execution, you can now deploy stateful, resilient AI agents that automatically handle session management, failure recovery, and scaling, freeing you to focus entirely on your agent logic. Key features of the durable task extension include: Serverless Hosting: Deploy agents on Azure Functions with auto-scaling from thousands of instances to zero, while retaining full control in a serverless architecture. Automatic Session Management: Agents maintain persistent sessions with full conversation context that survives process crashes, restarts, and distributed execution across instances Deterministic Multi-Agent Orchestrations: Coordinate specialized durable agents with predictable, repeatable, code-driven execution patterns Human-in-the-Loop with Serverless Cost Savings: Pause for human input without consuming compute resources or incurring costs Built-in Observability with Durable Task Scheduler: Deep visibility into agent operations and orchestrations through the Durable Task Scheduler UI dashboard Create a durable agent: endpoint = os.getenv("AZURE_OPENAI_ENDPOINT") deployment_name = os.getenv("AZURE_OPENAI_DEPLOYMENT_NAME", "gpt-4o-mini") # Create an AI agent following the standard Microsoft Agent Framework pattern agent = AzureOpenAIChatClient( endpoint=endpoint, deployment_name=deployment_name, credential=AzureCliCredential() ).create_agent( instructions="""You are a professional content writer who creates engaging, well-structured documents for any given topic. When given a topic, you will: 1. Research the topic using the web search tool 2. Generate an outline for the document 3. Write a compelling document with proper formatting 4. Include relevant examples and citations""", name="DocumentPublisher", tools=[ AIFunctionFactory.Create(search_web), AIFunctionFactory.Create(generate_outline) ] ) # Configure the function app to host the agent with durable session management app = AgentFunctionApp(agents=[agent]) app.run() Durable Task Scheduler dashboard for agent and agent workflow observability and debugging For more information on the durable task extension for Agent Framework, see the announcement: https://aka.ms/durable-extension-for-af-blog. Flex Consumption Updates As you know, Flex Consumption means serverless without compromise. It combines elastic scale and pay‑for‑what‑you‑use pricing with the controls you expect: per‑instance concurrency, longer executions, VNet/private networking, and Always Ready instances to minimize cold starts. Since launching GA at Ignite 2024 last year, Flex Consumption has had tremendous growth with over 1.5 billion function executions per day and nearly 40 thousand apps. Here’s what’s new for Ignite 2025: 512 MB instance size (GA). Right‑size lighter workloads, scale farther within default quota. Availability Zones (GA). Distribute instances across zones. Rolling updates (Public Preview). Unlock zero-downtime deployments of code or config by setting a single configuration. See below for more information. Even more improvements including: new diagnostic settingsto route logs/metrics, use Key Vault App Config references, new regions, and Custom Handler support. To get started, review Flex Consumption samples, or dive into the documentation to see how Flex can support your workloads. Migrating to Azure Functions Flex Consumption Migrating to Flex Consumption is simple with our step-by-step guides and agentic tools. Move your Azure Functions apps or AWS Lambda workloads, update your code and configuration, and take advantage of new automation tools. With Linux Consumption retiring, now is the time to switch. For more information, see: Migrate Consumption plan apps to the Flex Consumption plan Migrate AWS Lambda workloads to Azure Functions Durable Functions Durable Functions introduces powerful new features to help you build resilient, production-ready workflows: Distributed Tracing: lets you track requests across components and systems, giving you deep visibility into orchestration and activities with support for App Insights and OpenTelemetry. Extended Sessions support in .NET isolated: improves performance by caching orchestrations in memory, ideal for fast sequential activities and large fan-out/fan-in patterns. Orchestration versioning (public preview): enables zero-downtime deployments and backward compatibility, so you can safely roll out changes without disrupting in-flight workflows Durable Task Scheduler Updates Durable Task Scheduler Dedicated SKU (GA): Now generally available, the Dedicated SKU offers advanced orchestration for complex workflows and intelligent apps. It provides predictable pricing for steady workloads, automatic checkpointing, state protection, and advanced monitoring for resilient, reliable execution. Durable Task Scheduler Consumption SKU (Public Preview): The new Consumption SKU brings serverless, pay-as-you-go orchestration to dynamic and variable workloads. It delivers the same orchestration capabilities with flexible billing, making it easy to scale intelligent applications as needed. For more information see: https://aka.ms/dts-ga-blog OpenTelemetry support in GA Azure Functions OpenTelemetry is now generally available, bringing unified, production-ready observability to serverless applications. Developers can now export logs, traces, and metrics using open standards—enabling consistent monitoring and troubleshooting across every workload. Key capabilities include: Unified observability: Standardize logs, traces, and metrics across all your serverless workloads for consistent monitoring and troubleshooting. Vendor-neutral telemetry: Integrate seamlessly with Azure Monitor or any OpenTelemetry-compliant backend, ensuring flexibility and choice. Broad language support: Works with .NET (isolated), Java, JavaScript, Python, PowerShell, and TypeScript. Start using OpenTelemetry in Azure Functions today to unlock standards-based observability for your apps. For step-by-step guidance on enabling OpenTelemetry and configuring exporters for your preferred backend, see the documentation. Deployment with Rolling Updates (Preview) Achieving zero-downtime deployments has never been easier. The Flex Consumption plan now offers rolling updates as a site update strategy. Set a single property, and all future code deployments and configuration changes will be released with zero-downtime. Instead of restarting all instances at once, the platform now drains existing instances in batches while scaling out the latest version to match real-time demand. This ensures uninterrupted in-flight executions and resilient throughput across your HTTP, non-HTTP, and Durable workloads – even during intensive scale-out scenarios. Rolling updates are now in public preview. Learn more at https://aka.ms/functions/rolling-updates. Secure Identity and Networking Everywhere By Design Security and trust are paramount. Azure Functions incorporates proven best practices by design, with full support for managed identity—eliminating secrets and simplifying secure authentication and authorization. Flex Consumption and other plans offer enterprise-grade networking features like VNETs, private endpoints, and NAT gateways for deep protection. The Azure Portal streamlines secure function creation, and updated scenarios and samples showcase these identity and networking capabilities in action. Built-in authentication (discussed above) enables inbound client traffic to use identity as well. Check out our updated Functions Scenarios page with quickstarts or our secure samples gallery to see these identity and networking best practices in action. .NET 10 Azure Functions now supports .NET 10, bringing in a great suite of new features and performance benefits for your code. .NET 10 is supported on the isolated worker model, and it’s available for all plan types except Linux Consumption. As a reminder, support ends for the legacy in-process model on November 10, 2026, and the in-process model is not being updated with .NET 10. To stay supported and take advantage of the latest features, migrate to the isolated worker model. Aspire Aspire is an opinionated stack that simplifies development of distributed applications in the cloud. The Azure Functions integration for Aspire enables you to develop, debug, and orchestrate an Azure Functions .NET project as part of an Aspire solution. Aspire publish directly deploys to your functions to Azure Functions on Azure Container Apps. Aspire 13 includes an updated preview version of the Functions integration that acts as a release candidate with go-live support. The package will be moved to GA quality with Aspire 13.1. Java 25, Node.js 24 Azure Functions now supports Java 25 and Node.js 24 in preview. You can now develop functions using these versions locally and deploy them to Azure Functions plans. Learn how to upgrade your apps to these versions here In Summary Ready to build what’s next? Update your Azure Functions Core Tools today and explore the latest samples and quickstarts to unlock new capabilities for your scenarios. The guided quickstarts run and deploy in under 5 minutes, and incorporate best practices—from architecture to security to deployment. We’ve made it easier than ever to scaffold, deploy, and scale real-world solutions with confidence. The future of intelligent, scalable, and secure applications starts now—jump in and see what you can create!Give your Foundry Agent Custom Tools with MCP Servers on Azure Functions
This blog post is for developers who have an MCP server deployed to Azure Functions and want to connect it to Microsoft Foundry agents. It walks through why you'd want to do this, the different authentication options available, and how to get your agent calling your MCP tools. Connect your MCP server on Azure Functions to Foundry Agent If you've been following along with this blog series, you know that Azure Functions is a great place to host remote MCP servers. You get scalable infrastructure, built-in auth, and serverless billing. All the good stuff. But hosting an MCP server is only half the picture. The real value comes when something actually uses those tools. Microsoft Foundry lets you build AI agents that can reason, plan, and take actions. By connecting your MCP server to an agent, you're giving it access to your custom tools, whether that's querying a database, calling an API, or running some business logic. The agent discovers your tools, decides when to call them, and uses the results to respond to the user. Why connect MCP servers to Foundry agents? You might already have an MCP server that works great with VS Code, VS, Cursor, or other MCP clients. Connecting that same server to a Foundry agent means you can reuse those tools in a completely different context, i.e. in an enterprise AI agent that your team or customers interact with. No need to rebuild anything. Your MCP server stays the same; you're just adding another consumer. Prerequisites Before proceeding, make sure you have the following: 1. An MCP server deployed to Azure Functions. If you don't have one yet, you can deploy one quickly by following one of the samples: Python TypeScript .NET 2. A Foundry project with a deployed model and a Foundry agent Authentication options Depending on where you are in development, you can pick what makes sense and upgrade later. Here's a summary: Method Description When to use Key-based (default) Agent authenticates by passing a shared function access key in the request header. This method is the default authentication for HTTP endpoints in Functions. Development, or when Entra auth isn't required. Microsoft Entra Agent authenticates using either its own identity (agent identity) or the shared identity of the Foundry project (project managed identity). Use agent identity for production scenarios, but limit shared identity to development. OAuth identity passthrough Agent prompts users to sign in and authorize access, using the provided token to authenticate. Production, when each user must authenticate individually. Unauthenticated Agent makes unauthenticated calls. Development only, or tools that access only public information. Connect your MCP server to your Foundry agent If your server uses key-based auth or is unauthenticated, it should be relatively straightforward to set up the connection from a Foundry agent. The Microsoft Entra and OAuth identity passthrough are options that require extra steps to set up. Check out detailed step-by-step instructions for each authentication method. At a high level, the process looks like this: Enable built-in MCP authentication : When you deploy a server to Azure Functions, key-based auth is the default. You'll need to disable that and enable built-in MCP auth instead. If you deployed one of the sample servers in the Prerequisite section, this step is already done for you. Get your MCP server endpoint URL: For MCP extension-based servers, it's https://<FUNCTION_APP_NAME>.azurewebsites.net/runtime/webhooks/mcp Get your credentials based on your chosen auth method: a managed identity configuration, OAuth credentials Add the MCP server as a tool in the Foundry portal by navigating to your agent, adding a new MCP tool, and providing the endpoint and credentials. Microsoft Entra connection required fields OAuth Identity required fields Once the server is configured as a tool, test it in the Agent Builder playground by sending a prompt that triggers one of your MCP tools. Closing thoughts What I find exciting about this is the composability. You build your MCP server once and it works everywhere: VS Code, VS, Cursor, ChatGPT, and now Foundry agents. The MCP protocol is becoming the universal interface for tool use in AI, and Azure Functions makes it easy to host these servers at scale and with security. Are you building agents with Foundry? Have you connected your MCP servers to other clients? I'd love to hear what tools you're exposing and how you're using them. Share with us your thoughts! What's next In the next blog post, we'll go deeper into other MCP topics and cover new MCP features and developments in Azure Functions. Stay tuned!Building the agentic future together at JDConf 2026
JDConf 2026 is just weeks away, and I’m excited to welcome Java developers, architects, and engineering leaders from around the world for two days of learning and connection. Now in its sixth year, JDConf has become a place where the Java community compares notes on their real-world production experience: patterns, tooling, and hard-earned lessons you can take back to your team, while we keep moving the Java systems that run businesses and services forward in the AI era. This year’s program lines up with a shift many of us are seeing first-hand: delivery is getting more intelligent, more automated, and more tightly coupled to the systems and data we already own. Agentic approaches are moving from demos to backlog items, and that raises practical questions: what’s the right architecture, where do you draw trust boundaries, how do you keep secrets safe, and how do you ship without trading reliability for novelty? JDConf is for and by the people who build and manage the mission-critical apps powering organizations worldwide. Across three regional livestreams, you’ll hear from open source and enterprise practitioners who are making the same tradeoffs you are—velocity vs. safety, modernization vs. continuity, experimentation vs. operational excellence. Expect sessions that go beyond “what” and get into “how”: design choices, integration patterns, migration steps, and the guardrails that make AI features safe to run in production. You’ll find several practical themes for shipping Java in the AI era: connecting agents to enterprise systems with clear governance; frameworks and runtimes adapting to AI-native workloads; and how testing and delivery pipelines evolve as automation gets more capable. To make this more concrete, a sampling of sessions would include topics like Secrets of Agentic Memory Management (patterns for short- and long-term memory and safe retrieval), Modernizing a Java App with GitHub Copilot (end-to-end upgrade and migration with AI-powered technologies), and Docker Sandboxes for AI Agents (guardrails for running agent workflows without risking your filesystem or secrets). The goal is to help you adopt what’s new while hardening your long lived codebases. JDConf is built for community learning—free to attend, accessible worldwide, and designed for an interactive live experience in three time zones. You’ll not only get 23 practitioner-led sessions with production-ready guidance but also free on-demand access after the event to re-watch with your whole team. Pro tip: join live and get more value by discussing practical implications and ideas with your peers in the chat. This is where the “how” details and tradeoffs become clearer. JDConf 2026 Keynote Building the Agentic Future Together Rod Johnson, Embabel | Bruno Borges, Microsoft | Ayan Gupta, Microsoft The JDConf 2026 keynote features Rod Johnson, creator of the Spring Framework and founder of Embabel, joined by Bruno Borges and Ayan Gupta to explore where the Java ecosystem is headed in the agentic era. Expect a practitioner-level discussion on how frameworks like Spring continue to evolve, how MCP is changing the way agents interact with enterprise systems, and what Java developers should be paying attention to right now. Register. Attend. Earn. Register for JDConf 2026 to earn Microsoft Rewards points, which you can use for gift cards, sweepstakes entries, and more. Earn 1,000 points simply by signing up. When you register for any regional JDConf 2026 event with your Microsoft account, you'll automatically receive these points. Get 5,000 additional points for attending live (limited to the first 300 attendees per stream). On the day of your regional event, check in through the Reactor page or your email confirmation link to qualify. Disclaimer: Points are added to your Microsoft account within 60 days after the event. Must register with a Microsoft account email. Up to 10,000 developers eligible. Points will be applied upon registration and attendance and will not be counted multiple times for registering or attending at different events. Terms | Privacy JDConf 2026 Regional Live Streams Americas – April 8, 8:30 AM – 12:30 PM PDT (UTC -7) Bruno Borges hosts the Americas stream, discussing practical agentic Java topics like memory management, multi-agent system design, LLM integration, modernization with AI, and dependency security. Experts from Redis, IBM, Hammerspace, HeroDevs, AI Collective, Tekskills, and Microsoft share their insights. Register for Americas → Asia-Pacific – April 9, 10:00 AM – 2:00 PM SGT (UTC +8) Brian Benz and Ayan Gupta co-host the APAC stream, highlighting Java frameworks and practices for agentic delivery. Topics include Spring AI, multi-agent orchestration, spec-driven development, scalable DevOps, and legacy modernization, with speakers from Broadcom, Alibaba, CERN, MHP (A Porsche Company), and Microsoft. Register for Asia-Pacific → Europe, Middle East and Africa – April 9, 9:00 AM – 12:30 PM GMT (UTC +0) The EMEA stream, hosted by Sandra Ahlgrimm, will address the implementation of agentic Java in production environments. Topics include self-improving systems utilizing Spring AI, Docker sandboxes for agent workflow management, Retrieval-Augmented Generation (RAG) pipelines, modernization initiatives from a national tax authority, and AI-driven CI/CD enhancements. Presentations will feature experts from Broadcom, Docker, Elastic, Azul Systems, IBM, Team Rockstars IT, and Microsoft. Register for EMEA → Make It Interactive: Join Live Come prepared with an actual challenge you’re facing, whether you’re modernizing a legacy application, connecting agents to internal APIs, or refining CI/CD processes. Test your strategies by participating in live chats and Q&As with presenters and fellow professionals. If you’re attending with your team, schedule a debrief after the live stream to discuss how to quickly use key takeaways and insights in your pilots and projects. Learning Resources Java and AI for Beginners Video Series: Practical, episode-based walkthroughs on MCP, GenAI integration, and building AI-powered apps from scratch. Modernize Java Apps Guide: Step-by-step guide using GitHub Copilot agent mode for legacy Java project upgrades, automated fixes, and cloud-ready migrations. AI Agents for Java Webinar: Embedding AI Agent capabilities into Java applications using Microsoft Foundry, from project setup to production deployment. Java Practitioner’s Guide: Learning plan for deploying, managing, and optimizing Java applications on Azure using modern cloud-native approaches. Register Now JDConf 2026 is a free global event for Java teams. Join live to ask questions, connect, and gain practical patterns. All 23 sessions will be available on-demand. Register now to earn Microsoft Rewards points for attending. Register at JDConf.com
Migrating Ant Builds to Maven with GitHub Copilot app modernization
Many legacy Java applications still rely on Apache Ant for building, packaging, and dependency management. While Ant remains flexible, it lacks the structured lifecycle, dependency resolution, and ecosystem support that modern build tools like Maven provide. Migrating from Ant to Maven improves maintainability, build reproducibility, IDE compatibility, and enables modern Java workflows such as dependency upgrades, framework updates, and containerization. GitHub Copilot app modernization accelerates this transition by analyzing an Ant‑based project, generating a migration plan, and applying transformations to produce a Maven‑based build aligned with modern Java tooling. What GitHub Copilot app modernization Supports GitHub Copilot app modernization can help teams: Detect Ant build scripts (build.xml) and related custom task files Recommend Maven project structure and lifecycle alignment Generate an initial pom.xml with matched project metadata Map Ant targets to Maven phases where possible Identify external dependencies and translate them into Maven coordinates Migrate resource directories and compiled output locations Surface code or configuration changes required for a Maven‑driven build Validate the new Maven configuration through iterative builds This modernizes the build foundation before performing other upgrades such as JDK, Spring, Jakarta, or container‑readiness transformations. Project Analysis When you open an Ant‑based project in Visual Studio Code or IntelliJ IDEA, GitHub Copilot app modernization performs an analysis: Detects build.xml and auxiliary Ant scripts Identifies classpaths defined across Ant targets Evaluates manually referenced JARs in lib directories Inspects source layout and output directories Determines project metadata such as groupId, artifactId, and version Determines whether frameworks or libraries require updates before Maven migration This analysis forms the basis of the migration plan. Migration Plan Generation GitHub Copilot app modernization produces a migration plan that outlines: The recommended Maven project layout (src/main/java, src/test/java, resources directories) A generated pom.xml with discovered dependencies Mapped Ant targets to Maven lifecycle phases (compile, test, package) Plugin configurations needed to replicate custom Ant functionality Suggested removal of lib directory JARs in favor of dependency management Notes on unsupported or manual‑review areas (custom Ant tasks, script‑heavy targets, specialized packaging logic) You can review and adjust the plan before proceeding. Automated Transformations Once confirmed, GitHub Copilot app modernization applies targeted updates: Generates the project’s pom.xml Migrates dependency JAR references to Maven dependency entries Moves source and resource files into Maven‑compatible structure Updates ignore files, build output directories, and paths Introduces common Maven plugins for compiler, surefire, assembly, or shading Suggests replacements for custom Ant tasks if built‑in Maven plugins exist This automated work removes most of the manual lifting normally required for Ant → Maven transitions. Build & Fix Iteration After applying the transformations, the tool attempts to build the new Maven project: Runs the build Captures missing dependencies, incorrect scopes, or misaligned plugin versions Suggests targeted fixes Applies adjustments and rebuilds Iterates until the project compiles or no further automated fixes are possible This helps stabilize the migration quickly. Security & Behavior Validation GitHub Copilot app modernization also performs additional validation: Flags CVEs introduced or resolved through dependency discovery Alerts you to behavioral differences between Ant‑driven and Maven‑driven builds Highlights test failures, packaging differences, or altered classpaths that may need review These findings allow developers to refine the migration safely. Expected Output After the migration, you can expect: A newly generated and fully structured Maven project A populated pom.xml with dependencies, plugins, and metadata Updated project layout aligned with Maven standards Removed or deprecated Ant build files where appropriate Aligned dependency versions ready for further modernization A summary file detailing: Build changes Dependency mappings Code or config adjustments Remaining manual review items Developer Responsibilities While GitHub Copilot app modernization automates the mechanical migration from Ant to Maven, developers remain responsible for: Reviewing tests and build artifacts for behavioral differences Validating packaging steps for WAR/EAR/JAR outputs Replacing complex custom Ant scripts with proper Maven plugins Verifying deployment and CI workflows dependent on Ant build logic Confirming integration points that rely on Ant‑specific tasks or ordering Once validated, the Maven‑based structure becomes a strong foundation for further modernization such as JDK upgrades, Spring migration, Jakarta adoption, and containerization. Learn More For project setup and the complete modernization workflow, refer to the Microsoft Learn guide for upgrading Java projects with GitHub Copilot app modernization. Quickstart: Upgrade a Java Project with GitHub Copilot App Modernization | Microsoft LearnA Practical Path Forward for Heroku Customers with Azure
On February 6, 2026, Heroku announced it is moving to a sustaining engineering model focused on stability, security, reliability, and ongoing support. Many customers are now reassessing how their application platforms will support today’s workloads and future innovation. Microsoft is committed to helping customers migrate and modernize applications from platforms like Heroku to Azure.From Single Apps to Scale Solutions: How AI Agents Scale Modernization
AI is rewriting the modernization playbook. Over the past few years, AI has changed software development faster than anything we’ve seen in decades. And it’s not just about writing code faster. AI is reducing the day-to-day friction that slows teams down: upgrades, migrations, test failures, brittle pipelines, incident response, and the ever-growing backlog of technical debt. That operational drag keeps teams stuck maintaining systems instead of building what’s next. Agentic DevOps makes this shift practical. Software agents can now help across every stage of the application lifecycle, from planning and refactoring to testing, deployment, and running production systems. The real question organizations face is no longer if they should modernize, but how to modernize safely, continuously, and at scale—without pausing the business. Modernization is a business decision, but it’s a technical job. And the challenges are real. 65% of organizations cite security and compliance as a top challenge 1 59% struggle with a lack of skilled talent and resources 1 58% are held back by the complexity of monolithic applications 1 That’s why 35% of modernization projects stall 1 . The result is growing backlogs of technical debt, rising operational costs, and fewer resources available for innovation. That’s why developers, architects, and application owners are turning to agents to reduce manual toil, manage complexity, and stay secure from start to finish. With GitHub Copilot modernization, your teams have end-to-end modernization guidance and execution, with agents across every phase of the lifecycle. For each application, developers can use agents to assess an application, plan the cloud migration, transform code and configuration based on the application’s needs, generate infrastructure-as-code, validate changes, and deploy and test directly on Azure. And today, it just got even better. The modernization agent. In Public Preview today, the modernization agent is empowering teams with scale solutions, not just single-app fixes. Application owners and architects who need visibility and control across multiple applications can use the modernization agent to: Assess readiness across many applications at once Plan application specific modernization journeys Surface deep code and dependency level insights and recommendations Automate upgrades for Java and .NET applications Recommend aligned Azure services with organizational needs Operated from the CLI, the modernization agent integrates directly with GitHub Copilot, creating issues, pull requests, and shareable assessment reports for each application. Architects and application owners retain visibility and governance, while developers receive clear, prioritized work they can execute from the modernization agent or finish directly in their preferred editors! The modernization agent also coordinates with GitHub Copilot’s coding agent to complete tasks asynchronously across repositories, so you have full monitoring and audit trail in GitHub’s Agent HQ. The result is a connected planning to execution flow that finally makes modernization at scale possible without sacrificing oversight or control. Let’s break it down. Plan your modernization journey at scale Portfolio managers and central planners are planning an organization’s modernization journey on Azure. Within that, a solution architect or application owner maybe be responsible for 5, 10, 20, or more applications in that portfolio. They need to quickly understand each application’s unique needs and business goals. Where is there complexity? How much effort will it take? What does success look like for each one? The modernization agent helps them build actionable plans across their application estate. Take a look. If the player doesn’t load, open the video in a new window: Open video Execute the plan With high-confidence plans built from the modernization agent, application owners and architects can pass off to developers to work directly in the IDE to execute where precision work may be needed. Importantly, no two organizations modernize the same way. Teams have their own standards, frameworks, and business logic—and agents need to respect that. GitHub Copilot modernization supports custom skills, allowing organizations to tailor modernization to their needs. With custom skills, teams can: Preserve critical business logic during transformation Standardize outcomes across large application portfolios Apply internal SDKs and software factory patterns Custom skills ensure modernization plans and execution reflect organizational requirements—giving customers the flexibility to move fast without losing consistency or control. Let’s see it in action. If the player doesn’t load, open the video in a new window: Open video The way forward We have much more coming from the modernization agent as we expand the experience beyond the CLI and integrate with Azure Migrate so portfolio managers and central planners can coordinate with application owners and architects at estate scale. With these new features, we’re excited to accelerate modernization at scale, while ensuring changes are aligned with your organization’s standards and application requirements. See what else we’ve announced on how agents are reinventing modernization on Azure. Get started today by joining the Public Preview of the modernization agent and get white-glove support for the Public Preview modernization agent. Stay tuned for more updates as we make app modernization at scale fast and easy! 1 Q1 2026 Cloud and AI Application Modernization Survey conducted by Forrester Consulting on behalf of Microsoft
