Join us at Microsoft 365 Copilot Discovery event in Huntsville, AL! - UPDATED LOCATION AND DATES!
The Microsoft 365 Copilot Discovery event in Huntsville, AL features hands-on demos, expert sessions, and real-world use cases showcasing AI-driven productivity, Microsoft Copilot capabilities, and modern workplace innovation. The event takes place on May 19th 2026 in Huntsville, AL.From Fragmentation to Resilience: Why Next Gen “Whole of State” Is Future of Pub Sec Cybersecurity
Each year at the Billington State and Local Cybersecurity Summit, one message comes through clearly: the cyber threat landscape facing state and local governments is accelerating faster than traditional models of defense can keep up. Cyber risk is no longer confined to a single agency, system, or jurisdiction. It spans emergency management, education, healthcare, critical infrastructure, and the workforce itself. At the same time, public sector leaders are being asked to modernize services, adopt AI responsibly, and do more with constrained resources. These pressures are not isolated—and neither can the response be. That is why Microsoft is focused on a Next Gen Whole of State approach: a state-wide, coordinated model that brings together cyber defense, risk management, and workforce development into a unified strategy—designed for scale, resilience, and trust. Why “Whole of State” Matters Now Many states have invested significantly in cybersecurity over the past decade. Yet most efforts remain fragmented—with agencies operating independently, duplicating tools, and competing for scarce talent. Internal Microsoft analysis and field experience show that this model creates three persistent challenges: Limited visibility across agencies and jurisdictions Inconsistent security posture and response capability Ongoing workforce shortages that slow modernization efforts A Next Gen Whole of State program is designed to address these challenges holistically. It is a state-wide shared services model that improves efficiency, strengthens critical infrastructure defense, and accelerates AI and cyber talent development—while respecting the autonomy of individual agencies. This is not about centralizing control. It is about coordinating outcomes. Cybersecurity as Critical Infrastructure At Billington, state and local leaders consistently emphasize that cybersecurity must be treated as critical infrastructure protection, not simply an IT function. Next Gen Whole of State reflects that reality by enabling: Shared cyber services across agencies and local governments Proactive identification of vulnerabilities and “slow-burn” risks Streamlined collaboration during incident response and emergencies By aligning technology platforms, processes, and partners, states can move toward a more collective defense posture—reducing duplication while improving resilience across the entire ecosystem. This approach supports more consistent policy enforcement, better situational awareness, and more efficient use of limited funding—priorities that resonate strongly across the state and local community. Workforce Development Is a Security Imperative Another theme that consistently surfaces at Billington is the workforce challenge. Technology alone does not secure a state. People do. Next Gen Whole of State explicitly integrates workforce and economic development into the security strategy. Through hands-on skilling, apprenticeships, and industry-recognized certifications, states can help build sustainable pipelines of AI and cyber talent using real-world platforms and tools. This model supports: Career-ready training aligned to actual state and local needs Opportunities for students, veterans, and career changers Long-term reduction in dependency on external resources By investing locally, states strengthen both their security posture and their communities—an outcome public sector leaders increasingly view as inseparable. Microsoft’s Role: Thought Leadership at Scale Microsoft’s contribution to Next Gen Whole of State is grounded in three principles reflected across our public sector work: Unified platforms that span identity, security, compliance, and AI Cross-sector collaboration, connecting government, education, and partners Responsible innovation, aligned with Zero Trust and secure-by-design practices This enables states to move beyond isolated pilots toward enduring, state-wide programs—while positioning themselves to adapt as threats and technologies evolve. Importantly, Whole of State also creates a framework for consistent executive engagement, allowing leaders to align strategy, funding, and outcomes around a shared vision. Looking Ahead The conversations happening at Billington reflect a broader shift underway across the public sector. States that lead in the next decade will be those that: Treat cybersecurity as a shared responsibility Align technology, policy, and workforce strategy Build trust through resilience, transparency, and scale Next Gen Whole of State is not a single product or program. It is a strategic approach to how states protect critical infrastructure, modernize services, and prepare their workforce for an AI-driven future. And it is increasingly clear that this approach is no longer optional—it is foundational. Join the Conversation Microsoft continues to work with state and local leaders, educators, and partners to advance Next Gen Whole of State initiatives across the country. To learn more or engage with the Microsoft Security community, visit the Microsoft Tech Community and continue the conversation.Sunderland City Profile: Frontier transformation in practice
Download the SmartCitiesWorld City Profile – Sunderland Cities everywhere are facing the same pressure: modernize infrastructure, grow the economy, and improve quality of life, without widening inequality. Sunderland offers a credible path forward. Once defined by shipbuilding and coal mining, Sunderland has spent the last four decades deliberately reinventing itself. Today, it is positioning itself as the UK’s leading smart city by investing in digital infrastructure, data, and low‑carbon innovation to drive inclusive, long‑term growth. The latest City Profile from SmartCitiesWorld captures how this strategy is being executed and why it matters for city leaders globally. A digital backbone built for outcomes, not optics Sunderland’s progress starts with a clear foundation: connectivity and data designed with purpose. Full‑fibre connectivity across the city Citywide 5G and LoRaWAN coverage A secure, cloud‑based smart city data platform Together, this stack enables real‑time visibility across transport, environment, and public services. More importantly, it shifts the city from reactive decision‑making to proactive, evidence‑led operations. The impact is measurable. Data and analytics now support: Safer, more predictable event planning Smarter traffic and mobility management Earlier environmental interventions More targeted social and health services From digital health hubs that reduce exclusion to intelligent transport pilots that cut emissions and improve safety, Sunderland is applying technology where it delivers the highest public value—not where it looks most impressive on a slide. What comes next: two opportunities to scale impact The City Profile also highlights where cities like Sunderland can go further. Two opportunities stand out. Move from smart services to predictive city operations With real‑time data already in place, the next step is predictive modeling—anticipating demand across social care, transport, energy, and public safety before pressure points emerge. Done right, this enables earlier investment decisions, lower long‑term costs, and better outcomes across services. Turn digital inclusion into a workforce engine Sunderland’s digital health hubs create a foundation for something bigger: linking access and digital skills directly to workforce development. By aligning inclusion efforts with local demand in advanced manufacturing, data, and clean energy, cities can convert access into sustained economic mobility. Why Sunderland’s approach matters Sunderland’s experience reinforces a critical point: smart city transformation is not about technology in isolation. It is about aligning infrastructure, data, governance, and community priorities around a shared vision for inclusive growth. For public‑sector leaders moving from ambition to execution, the full City Profile provides practical insight into the partnerships, operating models, and decisions behind Sunderland’s approach. It’s a useful reference for anyone looking to translate a digital‑first strategy into measurable impact—for people, place, and long‑term resilience.December Prompt-a-thon for Government Customers
Ready to unlock the power of AI for government missions? Join us for an immersive in-person Copilot Prompt‑a‑thon designed to help you master prompt engineering, collaborate with experts, and tackle real‑world scenarios using M365 Copilot GCC. This is your chance to transform workflows, boost efficiency, and lead the way in Generative AI adoption.Running Phi-4 Locally with Microsoft Foundry Local: A Step-by-Step Guide
In our previous post, we explored how Phi-4 represents a new frontier in AI efficiency that delivers performance comparable to models 5x its size while being small enough to run on your laptop. Today, we're taking the next step: getting Phi-4 up and running locally on your machine using Microsoft Foundry Local. Whether you're a developer building AI-powered applications, an educator exploring AI capabilities, or simply curious about running state-of-the-art models without relying on cloud APIs, this guide will walk you through the entire process. Microsoft Foundry Local brings the power of Azure AI Foundry to your local device without requiring an Azure subscription, making local AI development more accessible than ever. So why do you want to run Phi-4 Locally? Before we dive into the setup, let's quickly recap why running models locally matters: Privacy and Control: Your data never leaves your machine. This is crucial for sensitive applications in healthcare, finance, or education where data privacy is paramount. Cost Efficiency: No API costs, no rate limits. Once you have the model downloaded, inference is completely free. Speed and Reliability: No network latency or dependency on external services. Your AI applications work even when you're offline. Learning and Experimentation: Full control over model parameters, prompts, and fine-tuning opportunities without restrictions. With Phi-4's compact size, these benefits are now accessible to anyone with a modern laptop—no expensive GPU required. What You'll Need Before we begin, make sure you have: Operating System: Windows 10/11, macOS (Intel or Apple Silicon), or Linux RAM: Minimum 16GB (32GB recommended for optimal performance) Storage: At least 5 - 10GB of free disk space Processor: Any modern CPU (GPU optional but provides faster inference) Note: Phi-4 works remarkably well even on consumer hardware 😀. Step 1: Installing Microsoft Foundry Local Microsoft Foundry Local is designed to make running AI models locally as simple as possible. It handles model downloads, manages memory efficiently, provides OpenAI-compatible APIs, and automatically optimizes for your hardware. For Windows Users: Open PowerShell or Command Prompt and run: winget install Microsoft.FoundryLocal For macOS Users (Apple Silicon): Open Terminal and run: brew install microsoft/foundrylocal/foundrylocal Verify Installation: Open your terminal and type. This should return the Microsoft Foundry Local version, confirming installation: foundry --version Step 2: Downloading Phi-4-Mini For this tutorial, we'll use Phi-4-mini, the lightweight 3.8 billion parameter version that's perfect for learning and experimentation. Open your terminal and run: foundry model run phi-4-mini You should see your download begin and something similar to the image below Available Phi Models on Foundry Local While we're using phi-4-mini for this guide, Foundry Local offers several Phi model variants and other open-source models optimized for different hardware and use cases: Model Hardware Type Size Best For phi-4-mini GPU chat-completion 3.72 GB Learning, fast responses, resource-constrained environments with GPU phi-4-mini CPU chat-completion 4.80 GB Learning, fast responses, CPU-only systems phi-4-mini-reasoning GPU chat-completion 3.15 GB Reasoning tasks with GPU acceleration phi-4-mini-reasoning CPU chat-completion 4.52 GB Mathematical proofs, logic puzzles with lower resource requirements phi-4 GPU chat-completion 8.37 GB Maximum reasoning performance, complex tasks with GPU phi-4 CPU chat-completion 10.16 GB Maximum reasoning performance, CPU-only systems phi-3.5-mini GPU chat-completion 2.16 GB Most lightweight option with GPU support phi-3.5-mini CPU chat-completion 2.53 GB Most lightweight option, CPU-optimized phi-3-mini-128k GPU chat-completion 2.13 GB Extended context (128k tokens), GPU-optimized phi-3-mini-128k CPU chat-completion 2.54 GB Extended context (128k tokens), CPU-optimized phi-3-mini-4k GPU chat-completion 2.13 GB Standard context (4k tokens), GPU-optimized phi-3-mini-4k CPU chat-completion 2.53 GB Standard context (4k tokens), CPU-optimized Note: Foundry Local automatically selects the best variant for your hardware. If you have an NVIDIA GPU, it will use the GPU-optimized version. Otherwise, it will use the CPU-optimized version. run the command below to see full list of models foundry model list Step 3: Test It Out Once the download completes, an interactive session will begin. Let's test Phi-4-mini's capabilities with a few different prompts: Example 1: Explanation Phi-4-mini provides a thorough, well-structured explanation! It starts with the basic definition, explains the process in biological systems, gives real-world examples (plant cells, human blood cells). The response is detailed yet accessible. Example 2: Mathematical Problem Solving Excellent step-by-step solution! Phi-4-mini breaks down the problem methodically: 1. Distributes on the left side 2. Isolates the variable terms 3. Simplifies progressively 4. Arrives at the final answer: x = 11 The model shows its work clearly, making it easy to follow the logic and ideal for educational purposes Example 3: Code Generation The model provides a concise Python function using string slicing ([::-1]) - the most Pythonic approach to reversing a string. It includes clear documentation with a docstring explaining the function's purpose, provides example usage demonstrating the output, and even explains how the slicing notation works under the hood. The response shows that the model understands not just how to write the code, but why this approach is preferred - noting that the [::-1] slice notation means "start at the end of the string and end at position 0, move with the step -1, negative one, which means one step backwards." This showcases the model's ability to generate production-ready code with proper documentation while being educational about Python idioms. To exit the interactive session, type `/bye` Step 4: Extending Phi-4 with Real-Time Tools Understanding Phi-4's Knowledge Cutoff Like all language models, Phi-4 has a knowledge cutoff date from its training data (typically several months old). This means it won't know about very recent events, current prices, or breaking news. For example, if you ask "Who won the 2024 NBA championship?" it might not have the answer. The good thing is, there's a powerful work-around. While Phi-4 is incredibly capable, connecting it to external tools like web search, databases, or APIs transforms it from a static knowledge base into a dynamic reasoning engine. This is where Microsoft Foundry's REST API comes in. Microsoft Foundry provides a simple API that lets you integrate Phi-4 into Python applications and connect it to real-time data sources. Here's a practical example: building a web-enhanced AI assistant. Web-Enhanced AI Assistant This simple application combines Phi-4's reasoning with real-time web search, allowing it to answer current questions accurately. Prerequisites: pip install foundry-local-sdk requests ddgs Create phi4_web_assistant.py: import requests from foundry_local import FoundryLocalManager from ddgs import DDGS import json def search_web(query): """Search the web and return top results""" try: results = list(DDGS().text(query, max_results=3)) if not results: return "No search results found." search_summary = "\n\n".join([ f"[Source {i+1}] {r['title']}\n{r['body'][:500]}" for i, r in enumerate(results) ]) return search_summary except Exception as e: return f"Search failed: {e}" def ask_phi4(endpoint, model_id, prompt): """Send a prompt to Phi-4 and stream response""" response = requests.post( f"{endpoint}/chat/completions", json={ "model": model_id, "messages": [{"role": "user", "content": prompt}], "stream": True }, stream=True, timeout=180 ) full_response = "" for line in response.iter_lines(): if line: line_text = line.decode('utf-8') if line_text.startswith('data: '): line_text = line_text[6:] # Remove 'data: ' prefix if line_text.strip() == '[DONE]': break try: data = json.loads(line_text) if 'choices' in data and len(data['choices']) > 0: delta = data['choices'][0].get('delta', {}) if 'content' in delta: chunk = delta['content'] print(chunk, end="", flush=True) full_response += chunk except json.JSONDecodeError: continue print() return full_response def web_enhanced_query(question): """Combine web search with Phi-4 reasoning""" # By using an alias, the most suitable model will be downloaded # to your device automatically alias = "phi-4-mini" # Create a FoundryLocalManager instance. This will start the Foundry # Local service if it is not already running and load the specified model. manager = FoundryLocalManager(alias) model_info = manager.get_model_info(alias) print("🔍 Searching the web...\n") search_results = search_web(question) prompt = f"""Here are recent search results: {search_results} Question: {question} Using only the information above, give a clear answer with specific details.""" print("🤖 Phi-4 Answer:\n") return ask_phi4(manager.endpoint, model_info.id, prompt) if __name__ == "__main__": # Try different questions question = "Who won the 2024 NBA championship?" # question = "What is the latest iPhone model released in 2024?" # question = "What is the current price of Bitcoin?" print(f"Question: {question}\n") print("=" * 60 + "\n") web_enhanced_query(question) print("\n" + "=" * 60) Run It: python phi4_web_assistant.py What Makes This Powerful By connecting Phi-4 to external tools, you create an intelligent system that: Accesses Real-Time Information: Get news, weather, sports scores, and breaking developments Verifies Facts: Cross-reference information with multiple sources Extends Capabilities: Connect to databases, APIs, file systems, or any other tool Enables Complex Applications: Build research assistants, customer support bots, educational tutors, and personal assistants This same pattern can be applied to connect Phi-4 to: Databases: Query your company's internal data APIs: Weather services, stock prices, translation services File Systems: Analyze documents and spreadsheets IoT Devices: Control smart home systems The possibilities are endless when you combine local AI reasoning with real-world data access. Troubleshooting Common Issues Service not running: Make sure Foundry Local is properly installed and the service is running. Try restarting with foundry --version to verify installation. Model downloads slowly: Check your internet connection and ensure you have enough disk space (5-10GB per model). Out of memory: Close other applications or try using a smaller model variant like phi-3.5-mini instead of the full phi-4. Connection issues: Verify that no other services are using the same ports. Foundry Local typically runs on http://localhost:5272. Model not found: Run foundry model list to see available models, then use foundry model run <model-name> to download and run a specific model. Your Next Steps with Foundry Local Congratulations! You now have Phi-4 running locally through Microsoft Foundry Local and understand how to extend it with external tools like web search. This combination of local AI reasoning with real-time data access opens up countless possibilities for building intelligent applications. Coming in Future Posts In the coming weeks, we'll explore advanced topics using Hugging Face: Fine-tuning Phi models on your own data for domain-specific applications Phi-4-multimodal: Analyze images, process audio, and combine multiple data types Advanced deployment patterns: RAG systems and multi-agent orchestration Resources to Explore EdgeAI for Beginners Course: Comprehensive 36-45 hour course covering Edge AI fundamentals, optimization, and production deployment Phi-4 Technical Report: Deep dive into architecture and benchmarks Phi Cookbook on GitHub: Practical examples and recipes Foundry Local Documentation: Complete technical documentation and API reference Module 08: Foundry Local Toolkit: 10 comprehensive samples including RAG applications and multi-agent systems Keep experimenting with Foundry Local, and stay tuned as we unlock the full potential of Edge AI! What will you build with Phi-4? Share your ideas and projects in the comments below!Two Public Sector Roundtables at PPCC25
Heading to the Power Platform Community Conference in Las Vegas? Don’t miss two sessions designed for the public sector. The Microsoft Sovereign Cloud Architect Panel gives U.S. GCC, GCC High, and DoD customers direct access to Microsoft experts for roadmap and security insights. Meanwhile, Powering Public Impact brings together global government and education leaders to share strategies for governance, AI adoption, and scaling low‑code innovation. Join these conversations to learn, connect, and shape the future of digital transformation in government.
