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. It's the agentic AI pattern in action. 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 When to use Key-based Development, or when Entra auth isn't required. Microsoft Entra Production, using project managed identity. OAuth identity passthrough Production, when each user must authenticate individually. Unauthenticated 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!
MCP Apps on Azure Functions: Quick Start with TypeScript
Azure Functions makes hosting MCP apps simple: build locally, create a secure endpoint, and deploy fast with Azure Developer CLI (azd). This guide shows you how using a weather app example. What Are MCP Apps? MCP Apps let MCP servers return interactive HTML interfaces such as data visualizations, forms, dashboards that render directly inside MCP-compatible hosts (Visual Studio Code Copilot, Claude, ChatGPT, etc.). Learn more about MCP Apps in the official documentation. Having an interactive UI removes many restrictions that plain texts have, such as if your scenario has: Interactive Data: Replacing lists with clickable maps or charts for deep exploration. Complex Setup: Use one-page forms instead of long, back-and-forth questioning. Rich Media: Embed native viewers to pan, zoom, or rotate 3D models and documents. Live Updates: Maintain real-time dashboards that refresh without new prompts. Workflow Management: Handle multi-step tasks like approvals with navigation buttons and persistent state. MCP App Hosting as a Feature Azure Functions provides an easy abstraction to help you build MCP servers without having to learn the nitty-gritty of the MCP protocol. When hosting your MCP App on Functions, you get: MCP tools (server logic): Handle client requests, call backend services, return structured data - Azure Functions manages the MCP protocol details for you MCP resources (UI payloads such as app widgets): Serve interactive HTML, JSON documents, or formatted content - just focus on your UI logic Secure HTTPS access: Built-in authentication using Azure Functions keys, plus built-in MCP authentication with OAuth support for enterprise-grade security Easy deployment with Bicep and azd: Infrastructure as Code for reliable deployments Local development: Test and debug locally before deploying Auto-scaling: Azure Functions handles scaling, retries, and monitoring automatically The weather app in this repo is an example of this feature, not the only use case. Architecture Overview Example: The classic Weather App The sample implementation includes: A GetWeather MCP tool that fetches weather by location (calls Open-Meteo geocoding and forecast APIs) A Weather Widget MCP resource that serves interactive HTML/JS code (runs in the client; fetches data via GetWeather tool) A TypeScript service layer that abstracts API calls and data transformation (runs on the server) Bidirectional communication: client-side UI calls server-side tools, receives data, renders locally Local and remote testing flow for MCP clients (via MCP Inspector, VS Code, or custom clients) How UI Rendering Works in MCP Apps In the Weather App example: Azure Functions serves getWeatherWidget as a resource → returns weather-app.ts compiled to HTML/JS Client renders the Weather Widget UI User interacts with the widget or requests are made internally The widget calls the getWeather tool → server processes and returns weather data The widget renders the weather data on the client side This architecture keeps the UI responsive locally while using server-side logic and data on demand. Quick Start Checkout repository: https://github.com/Azure-Samples/remote-mcp-functions-typescript Run locally: npm install npm run build func start Local endpoint: http://0.0.0.0:7071/runtime/webhooks/mcp Deploy to Azure: azd provision azd deploy Remote endpoint: https://.azurewebsites.net/runtime/webhooks/mcp TypeScript MCP Tools Snippet (Get Weather service) In Azure Functions, you define MCP tools using app.mcpTool(). The toolName and description tell clients what this tool does, toolProperties defines the input arguments (like location as a string), and handler points to your function that processes the request. app.mcpTool("getWeather", { toolName: "GetWeather", description: "Returns current weather for a location via Open-Meteo.", toolProperties: { location: arg.string().describe("City name to check weather for") }, handler: getWeather, }); Resource Trigger Snippet (Weather App Hook) MCP resources are defined using app.mcpResource(). The uri is how clients reference this resource, resourceName and description provide metadata, mimeType tells clients what type of content to expect, and handler is your function that returns the actual content (like HTML for a widget). app.mcpResource("getWeatherWidget", { uri: "ui://weather/index.html", resourceName: "Weather Widget", description: "Interactive weather display for MCP Apps", mimeType: "text/html;profile=mcp-app", handler: getWeatherWidget, }); Sample repos and references Complete sample repository with TypeScript implementation: https://github.com/Azure-Samples/remote-mcp-functions-typescript Official MCP extension documentation: https://learn.microsoft.com/azure/azure-functions/functions-bindings-mcp?pivots=programming-language-typescript Java sample: https://github.com/Azure-Samples/remote-mcp-functions-java .NET sample: https://github.com/Azure-Samples/remote-mcp-functions-dotnet Python sample: https://github.com/Azure-Samples/remote-mcp-functions-python MCP Inspector: https://github.com/modelcontextprotocol/inspector Final Takeaway MCP Apps are just MCP servers but they represent a paradigm shift by transforming the AI from a text-based chatbot into a functional interface. Instead of forcing users to navigate complex tasks through back-and-forth conversations, these apps embed interactive UIs and tools directly into the chat, significantly improving the user experience and the usefulness of MCP servers. Azure Functions allows developers to quickly build and host an MCP app by providing an easy abstraction and deployment experience. The platform also provides built-in features to secure and scale your MCP apps, plus a serverless pricing model so you can just focus on the business logic.The Durable Task Scheduler Consumption SKU is now Generally Available
Today, we're excited to announce that the Durable Task Scheduler Consumption SKU has reached General Availability. Developers can now run durable workflows and agents on Azure with pay-per-use pricing, no storage to manage, no capacity to plan, and no idle costs. Just create a scheduler, connect your app, and start orchestrating. Whether you're coordinating AI agent workflows, processing event-driven pipelines, or running background jobs, the Consumption SKU is ready to go. GET STARTED WITH THE DURABLE TASK SCHEDULER CONSUMPTION SKU Since launching the Consumption SKU in public preview last November, we've seen incredible adoption and have incorporated feedback from developers around the world to ensure the GA release is truly production ready. “The Durable Task Scheduler has become a foundational piece of what we call ‘workflows’. It gives us the reliability guarantees we need for processing financial documents and sensitive workflows, while keeping the programming model straightforward. The combination of durable execution, external event correlation, deterministic idempotency, and the local emulator experience has made it a natural fit for our event-driven architecture. We have been delighted with the consumption SKUs cost model for our lower environments.”– Emily Lewis, CarMax What is the Durable Task Scheduler? If you're new to the Durable Task Scheduler, we recommend checking out our previous blog posts for a detailed background: Announcing Limited Early Access of the Durable Task Scheduler Announcing Workflow in Azure Container Apps with the Durable Task Scheduler Announcing Dedicated SKU GA & Consumption SKU Public Preview In brief, the Durable Task Scheduler is a fully managed orchestration backend for durable execution on Azure, meaning your workflows and agent sessions can reliably resume and run to completion, even through process failures, restarts, and scaling events. Whether you’re running workflows or orchestrating durable agents, it handles task scheduling, state persistence, fault tolerance, and built-in monitoring, freeing developers from the operational overhead of managing their own execution engines and storage backends. The Durable Task Scheduler works across Azure compute environments: Azure Functions: Using the Durable Functions extension across all Function App SKUs, including Flex Consumption. Azure Container Apps: Using the Durable Functions or Durable Task SDKs with built-in workflow support and auto-scaling. Any compute: Azure Kubernetes Service, Azure App Service, or any environment where you can run the Durable Task SDKs (.NET, Python, Java, JavaScript). Why choose the Consumption SKU? With the Consumption SKU you’re charged only for actions dispatched, with no minimum commitments or idle costs. There’s no capacity to size or throughput to reserve. Create a scheduler, connect your app, and you’re running. The Consumption SKU is a natural fit for workloads with unpredictable or bursty usage patterns: AI agent orchestration: Multi-step agent workflows that call LLMs, retrieve data, and take actions. Users trigger these on demand, so volume is spiky and pay-per-use avoids idle costs between bursts. Event-driven pipelines: Processing events from queues, webhooks, or streams with reliable orchestration and automatic checkpointing, where volumes spike and dip unpredictably. API-triggered workflows: User signups, form submissions, payment flows, and other request-driven processing where volume varies throughout the day. Distributed transactions: Retries and compensation logic across microservices with durable sagas that survive failures and restarts. What's included in the Consumption SKU at GA The Consumption SKU has been hardened based on feedback and real-world usage during the public preview. Here's what's included at GA: Performance Up to 500 actions per second: Sufficient throughput for a wide range of workloads, with the option to move to the Dedicated SKU for higher-scale scenarios. Up to 30 days of data retention: View and manage orchestration history, debug failures, and audit execution data for up to 30 days. Built-in monitoring dashboard Filter orchestrations by status, drill into execution history, view visual Gantt and sequence charts, and manage orchestrations (pause, resume, terminate, or raise events), all from the dashboard, secured with Role-Based Access Control (RBAC). Identity-based security The Consumption SKU uses Entra ID for authentication and RBAC for authorization. No SAS tokens or access keys to manage, just assign the appropriate role and connect. Get started with the Durable Task Scheduler today The Consumption SKU is available now Generally Available. Provision a scheduler in the Azure portal, connect your app, and start orchestrating. You only pay for what you use. Documentation Getting started Samples Pricing Consumption SKU docs We'd love to hear your feedback. Reach out to us by filing an issue on our GitHub repository
Migrating to the next generation of Virtual Nodes on Azure Container Instances (ACI)
What is ACI/Virtual Nodes? Azure Container Instances (ACI) is a fully-managed serverless container platform which gives you the ability to run containers on-demand without provisioning infrastructure. Virtual Nodes on ACI allows you to run Kubernetes pods managed by an AKS cluster in a serverless way on ACI instead of traditional VM‑backed node pools. From a developer’s perspective, Virtual Nodes look just like regular Kubernetes nodes, but under the hood the pods are executed on ACI’s serverless infrastructure, enabling fast scale‑out without waiting for new VMs to be provisioned. This makes Virtual Nodes ideal for bursty, unpredictable, or short‑lived workloads where speed and cost efficiency matter more than long‑running capacity planning. Introducing the next generation of Virtual Nodes on ACI The newer Virtual Nodes v2 implementation modernises this capability by removing many of the limitations of the original AKS managed add‑on and delivering a more Kubernetes‑native, flexible, and scalable experience when bursting workloads from AKS to ACI. In this article I will demonstrate how you can migrate an existing AKS cluster using the Virtual Nodes managed add-on (legacy), to the new generation of Virtual Nodes on ACI, which is deployed and managed via Helm. More information about Virtual Nodes on Azure Container Instances can be found here, and the GitHub repo is available here. Advanced documentation for Virtual Nodes on ACI is also available here, and includes topics such as node customisation, release notes and a troubleshooting guide. Please note that all code samples within this guide are examples only, and are provided without warranty/support. Background Virtual Nodes on ACI is rebuilt from the ground-up, and includes several fixes and enhancements, for instance: Added support/features VNet peering, outbound traffic to the internet with network security groups Init containers Host aliases Arguments for exec in ACI Persistent Volumes and Persistent Volume Claims Container hooks Confidential containers (see supported regions list here) ACI standby pools Support for image pulling via Private Link and Managed Identity (MSI) Planned future enhancements Kubernetes network policies Support for IPv6 Windows containers Port Forwarding Note: The new generation of the add-on is managed via Helm rather than as an AKS managed add-on. Requirements & limitations Each Virtual Nodes on ACI deployment requires 3 vCPUs and 12 GiB memory on one of the AKS cluster’s VMs Each Virtual Nodes node supports up to 200 pods DaemonSets are not supported Virtual Nodes on ACI requires AKS clusters with Azure CNI networking (Kubenet is not supported, nor is overlay networking) Migrating to the next generation of Virtual Nodes on Azure Container Instances via Helm chart For this walkthrough, I'm using Bash via Windows Subsystem for Linux (WSL), along with the Azure CLI. Direct migration is not supported, and therefore the steps below show an example of removing Virtual Nodes managed add-on and its resources and then installing the Virtual Nodes on ACI Helm chart. In this walkthrough I will explain how to delete and re-create the Virtual Nodes subnet, however if you need to preserve the VNet and/or use a custom subnet name, refer to the Helm customisation steps here. Be sure to use a new subnet CIDR within the VNet address space, which doesn't overlap with other subnets nor the AKS CIDRS for nodes/pods and ClusterIP services. To minimise disruption, we'll first install the Virtual Nodes on ACI Helm chart, before then removing the legacy managed add-on and its resources. Prerequisites A recent version of the Azure CLI An Azure subscription with sufficient ACI quota for your selected region Helm Deployment steps Initialise environment variables location=northeurope rg=rg-virtualnode-demo vnetName=vnet-virtualnode-demo clusterName=aks-virtualnode-demo aksSubnetName=subnet-aks vnSubnetName=subnet-vn Create the new Virtual Nodes on ACI subnet with the specific name value of cg (a custom subnet can be used by following the steps here): vnSubnetId=$(az network vnet subnet create \ --resource-group $rg \ --vnet-name $vnetName \ --name cg \ --address-prefixes <your subnet CIDR> \ --delegations Microsoft.ContainerInstance/containerGroups --query id -o tsv) Assign the cluster's -kubelet identity Contributor access to the infrastructure resource group, and Network Contributor access to the ACI subnet: nodeRg=$(az aks show --resource-group $rg --name $clusterName --query nodeResourceGroup -o tsv) nodeRgId=$(az group show -n $nodeRg --query id -o tsv) agentPoolIdentityId=$(az aks show --resource-group $rg --name $clusterName --query "identityProfile.kubeletidentity.resourceId" -o tsv) agentPoolIdentityObjectId=$(az identity show --ids $agentPoolIdentityId --query principalId -o tsv) az role assignment create \ --assignee-object-id "$agentPoolIdentityObjectId" \ --assignee-principal-type ServicePrincipal \ --role "Contributor" \ --scope "$nodeRgId" az role assignment create \ --assignee-object-id "$agentPoolIdentityObjectId" \ --assignee-principal-type ServicePrincipal \ --role "Network Contributor" \ --scope "$vnSubnetId" Download the cluster's kubeconfig file: az aks get-credentials -n $clusterName -g $rg Clone the virtualnodesOnAzureContainerInstances GitHub repo: git clone https://github.com/microsoft/virtualnodesOnAzureContainerInstances.git Install the Virtual Nodes on ACI Helm chart: helm install <yourReleaseName> <GitRepoRoot>/Helm/virtualnode Confirm the Virtual Nodes node shows within the cluster and is in a Ready state (virtualnode-n): $ kubectl get node NAME STATUS ROLES AGE VERSION aks-nodepool1-35702456-vmss000000 Ready <none> 4h13m v1.33.6 aks-nodepool1-35702456-vmss000001 Ready <none> 4h13m v1.33.6 virtualnode-0 Ready <none> 162m v1.33.7 Scale-down any running Virtual Nodes workloads (example below): kubectl scale deploy <deploymentName> -n <namespace> --replicas=0 Drain and cordon the legacy Virtual Nodes node: kubectl drain virtual-node-aci-linux Disable the Virtual Nodes managed add-on (legacy): az aks disable-addons --resource-group $rg --name $clusterName --addons virtual-node Export a backup of the original subnet configuration: az network vnet subnet show --resource-group $rg --vnet-name $vnetName --name $vnSubnetName > subnetConfigOriginal.json Delete the original subnet (subnets cannot be renamed and therefore must be re-created): az network vnet subnet delete -g $rg -n $vnSubnetName --vnet-name $vnetName Delete the previous (legacy) Virtual Nodes node from the cluster: kubectl delete node virtual-node-aci-linux Test and confirm pod scheduling on Virtual Node: apiVersion: v1 kind: Pod metadata: annotations: name: demo-pod spec: containers: - command: - /bin/bash - -c - 'counter=1; while true; do echo "Hello, World! Counter: $counter"; counter=$((counter+1)); sleep 1; done' image: mcr.microsoft.com/azure-cli name: hello-world-counter resources: limits: cpu: 2250m memory: 2256Mi requests: cpu: 100m memory: 128Mi nodeSelector: virtualization: virtualnode2 tolerations: - effect: NoSchedule key: virtual-kubelet.io/provider operator: Exists If the pod successfully starts on the Virtual Node, you should see similar to the below: $ kubectl get pod -o wide demo-pod NAME READY STATUS RESTARTS AGE IP NODE NOMINATED NODE READINESS GATES demo-pod 1/1 Running 0 95s 10.241.0.4 vnode2-virtualnode-0 <none> <none> Modify the nodeSelector and tolerations properties of your Virtual Nodes workloads to match the requirements of Virtual Nodes on ACI (see details below) Modify your deployments to run on Virtual Nodes on ACI For Virtual Nodes managed add-on (legacy), the following nodeSelector and tolerations are used to run pods on Virtual Nodes: nodeSelector: kubernetes.io/role: agent kubernetes.io/os: linux type: virtual-kubelet tolerations: - key: virtual-kubelet.io/provider operator: Exists - key: azure.com/aci effect: NoSchedule For Virtual Nodes on ACI, the nodeSelector/tolerations are slightly different: nodeSelector: virtualization: virtualnode2 tolerations: - effect: NoSchedule key: virtual-kubelet.io/provider operator: Exists Troubleshooting Check the virtual-node-admission-controller and virtualnode-n pods are running within the vn2 namespace: $ kubectl get pod -n vn2 NAME READY STATUS RESTARTS AGE virtual-node-admission-controller-54cb7568f5-b7hnr 1/1 Running 1 (5h21m ago) 5h21m virtualnode-0 6/6 Running 6 (4h48m ago) 4h51m If these pods are in a Pending state, your node pool(s) may not have enough resources available to schedule them (use kubectl describe pod to validate). If the virtualnode-n pod is crashing, check the logs of the proxycri container to see whether there are any Managed Identity permissions issues (the cluster's -agentpool MSI needs to have Contributor access on the infrastructure resource group): kubectl logs -n vn2 virtualnode-0 -c proxycri Further troubleshooting guidance is available within the official documentation. Support If you have issues deploying or using Virtual Nodes on ACI, add a GitHub issue hereBeyond the Desktop: The Future of Development with Microsoft Dev Box and GitHub Codespaces
The modern developer platform has already moved past the desktop. We’re no longer defined by what’s installed on our laptops, instead we look at what tooling we can use to move from idea to production. An organisations developer platform strategy is no longer a nice to have, it sets the ceiling for what’s possible, an organisation can’t iterate it's way to developer nirvana if the foundation itself is brittle. A great developer platform shrinks TTFC (time to first commit), accelerates release velocity, and maybe most importantly, helps alleviate everyday frictions that lead to developer burnout. Very few platforms deliver everything an organization needs from a developer platform in one product. Modern development spans multiple dimensions, local tooling, cloud infrastructure, compliance, security, cross-platform builds, collaboration, and rapid onboarding. The options organizations face are then to either compromise on one or more of these areas or force developers into rigid environments that slow productivity and innovation. This is where Microsoft Dev Box and GitHub Codespaces come into play. On their own, each addresses critical parts of the modern developer platform: Microsoft Dev Box provides a full, managed cloud workstation. Dev Box gives developers a consistent, high-performance environment while letting central IT apply strict governance and control. Internally at Microsoft, we estimate that usage of Dev Box by our development teams delivers savings of 156 hours per year per developer purely on local environment setup and upkeep. We have also seen significant gains in other key SPACE metrics reducing context-switching friction and improving build/test cycles. Although the benefits of Dev Box are clear in the results demonstrated by our customers it is not without its challenges. The biggest challenge often faced by Dev Box customers is its lack of native Linux support. At the time of writing and for the foreseeable future Dev Box does not support native Linux developer workstations. While WSL2 provides partial parity, I know from my own engineering projects it still does not deliver the full experience. This is where GitHub Codespaces comes into this story. GitHub Codespaces delivers instant, Linux-native environments spun up directly from your repository. It’s lightweight, reproducible, and ephemeral ideal for rapid iteration, PR testing, and cross-platform development where you need Linux parity or containerized workflows. Unlike Dev Box, Codespaces can run fully in Linux, giving developers access to native tools, scripts, and runtimes without workarounds. It also removes much of the friction around onboarding: a new developer can open a repository and be coding in minutes, with the exact environment defined by the project’s devcontainer.json. That said, Codespaces isn’t a complete replacement for a full workstation. While it’s perfect for isolated project work or ephemeral testing, it doesn’t provide the persistent, policy-controlled environment that enterprise teams often require for heavier workloads or complex toolchains. Used together, they fill the gaps that neither can cover alone: Dev Box gives the enterprise-grade foundation, while Codespaces provides the agile, cross-platform sandbox. For organizations, this pairing sets a higher ceiling for developer productivity, delivering a truly hybrid, agile and well governed developer platform. Better Together: Dev Box and GitHub Codespaces in action Together, Microsoft Dev Box and GitHub Codespaces deliver a hybrid developer platform that combines consistency, speed, and flexibility. Teams can spin up full, policy-compliant Dev Box workstations preloaded with enterprise tooling, IDEs, and local testing infrastructure, while Codespaces provides ephemeral, Linux-native environments tailored to each project. One of my favourite use cases is having local testing setups like a Docker Swarm cluster, ready to go in either Dev Box or Codespaces. New developers can jump in and start running services or testing microservices immediately, without spending hours on environment setup. Anecdotally, my time to first commit and time to delivering “impact” has been significantly faster on projects where one or both technologies provide local development services out of the box. Switching between Dev Boxes and Codespaces is seamless every environment keeps its own libraries, extensions, and settings intact, so developers can jump between projects without reconfiguring or breaking dependencies. The result is a turnkey, ready-to-code experience that maximizes productivity, reduces friction, and lets teams focus entirely on building, testing, and shipping software. To showcase this value, I thought I would walk through an example scenario. In this scenario I want to simulate a typical modern developer workflow. Let's look at a day in the life of a developer on this hybrid platform building an IOT project using Python and React. Spin up a ready-to-go workstation (Dev Box) for Windows development and heavy builds. Launch a Linux-native Codespace for cross-platform services, ephemeral testing, and PR work. Run "local" testing like a Docker Swarm cluster, database, and message queue ready to go out-of-the-box. Switch seamlessly between environments without losing project-specific configurations, libraries, or extensions. 9:00 AM – Morning Kickoff on Dev Box I start my day on my Microsoft Dev Box, which gives me a fully-configured Windows environment with VS Code, design tools, and Azure integrations. I select my teams project, and the environment is pre-configured for me through the Dev Box catalogue. Fortunately for me, its already provisioned. I could always self service another one using the "New Dev Box" button if I wanted too. I'll connect through the browser but I could use the desktop app too if I wanted to. My Tasks are: Prototype a new dashboard widget for monitoring IoT device temperature. Use GUI-based tools to tweak the UI and preview changes live. Review my Visio Architecture. Join my morning stand up. Write documentation notes and plan API interactions for the backend. In a flash, I have access to my modern work tooling like Teams, I have this projects files already preloaded and all my peripherals are working without additional setup. Only down side was that I did seem to be the only person on my stand up this morning? Why Dev Box first: GUI-heavy tasks are fast and responsive. Dev Box’s environment allows me to use a full desktop. Great for early-stage design, planning, and visual work. Enterprise Apps are ready for me to use out of the box (P.S. It also supports my multi-monitor setup). I use my Dev Box to make a very complicated change to my IoT dashboard. Changing the title from "IoT Dashboard" to "Owain's IoT Dashboard". I preview this change in a browser live. (Time for a coffee after this hardwork). The rest of the dashboard isnt loading as my backend isnt running... yet. 10:30 AM – Switching to Linux Codespaces Once the UI is ready, I push the code to GitHub and spin up a Linux-native GitHub Codespace for backend development. Tasks: Implement FastAPI endpoints to support the new IoT feature. Run the service on my Codespace and debug any errors. Why Codespaces now: Linux-native tools ensure compatibility with the production server. Docker and containerized testing run natively, avoiding WSL translation overhead. The environment is fully reproducible across any device I log in from. 12:30 PM – Midday Testing & Sync I toggle between Dev Box and Codespaces to test and validate the integration. I do this in my Dev Box Edge browser viewing my codespace (I use my Codespace in a browser through this demo to highlight the difference in environments. In reality I would leverage the VSCode "Remote Explorer" extension and its GitHub Codespace integration to use my Codespace from within my own desktop VSCode but that is personal preference) and I use the same browser to view my frontend preview. I update the environment variable for my frontend that is running locally in my Dev Box and point it at the port running my API locally on my Codespace. In this case it was a web socket connection and HTTPS calls to port 8000. I can make this public by changing the port visibility in my Codespace. https://fluffy-invention-5x5wp656g4xcp6x9-8000.app.github.dev/api/devices wss://fluffy-invention-5x5wp656g4xcp6x9-8000.app.github.dev/ws This allows me to: Preview the frontend widget on Dev Box, connecting to the backend running in Codespaces. Make small frontend adjustments in Dev Box while monitoring backend logs in Codespaces. Commit changes to GitHub, keeping both environments in sync and leveraging my CI/CD for deployment to the next environment. We can see the Dev Box running local frontend and the Codespace running the API connected to each other, making requests and displaying the data in the frontend! Hybrid advantage: Dev Box handles GUI previews comfortably and allows me to live test frontend changes. Codespaces handles production-aligned backend testing and Linux-native tools. Dev Box allows me to view all of my files in one screen with potentially multiple Codespaces running in browser of VS Code Desktop. Due to all of those platform efficiencies I have completed my days goals within an hour or two and now I can spend the rest of my day learning about how to enable my developers to inner source using GitHub CoPilot and MCP (Shameless plug). The bottom line There are some additional considerations when architecting a developer platform for an enterprise such as private networking and security not covered in this post but these are implementation details to deliver the described developer experience. Architecting such a platform is a valuable investment to deliver the developer platform foundations we discussed at the top of the article. While in this demo I have quickly built I was working in a mono repository in real engineering teams it is likely (I hope) that an application is built of many different repositories. The great thing about Dev Box and Codespaces is that this wouldn’t slow down the rapid development I can achieve when using both. My Dev Box would be specific for the project or development team, pre loaded with all the tools I need and potentially some repos too! When I need too I can quickly switch over to Codespaces and work in a clean isolated environment and push my changes. In both cases any changes I want to deliver locally are pushed into GitHub (Or ADO), merged and my CI/CD ensures that my next step, potentially a staging environment or who knows perhaps *Whispering* straight into production is taken care of. Once I’m finished I delete my Codespace and potentially my Dev Box if I am done with the project, knowing I can self service either one of these anytime and be up and running again! Now is there overlap in terms of what can be developed in a Codespace vs what can be developed in Azure Dev Box? Of course, but as organisations prioritise developer experience to ensure release velocity while maintaining organisational standards and governance then providing developers a windows native and Linux native service both of which are primarily charged on the consumption of the compute* is a no brainer. There are also gaps that neither fill at the moment for example Microsoft Dev Box only provides windows compute while GitHub Codespaces only supports VS Code as your chosen IDE. It's not a question of which service do I choose for my developers, these two services are better together! *Changes have been announced to Dev Box pricing. A W365 license is already required today and dev boxes will continue to be managed through Azure. For more information please see: Microsoft Dev Box capabilities are coming to Windows 365 - Microsoft Dev Box | Microsoft Learn
Extend SRE Agent with MCP: Build an Agentic Workflow to Triage Customer Issues
Your inbox is full. GitHub issues piling up. "App not working." "How do I configure alerts?" "Please add dark mode." You open each one, figure out what it is, ask for more info, add labels, route to the right team. An hour later, you're still sorting issues. Sound familiar? The Triage Tax Every L1 support engineer, PM, and on-call developer who's handled customer issues knows this pain. When tickets come in, you're not solving problems, you're sorting them. Read the issue. Is it a bug or a question? Check the docs. Does this feature exist? Ask for more info. Wait two days. Re-triage. Add labels. Route to engineering. It's tedious. It requires judgment, you need to understand the product, know what info is needed, check documentation. And honestly? It's work that nobody volunteers for but someone has to do. In large organizations, it gets even more complex. The issue doesn't just need to be triaged, it needs to be routed to the right engineering team. Is this an auth issue? Frontend? Backend? Infrastructure? A wrong routing decision means delays, re-assignments, and frustrated customers. What if an AI agent could do this for you? Enter Azure SRE Agent + MCP Here's what I built: I gave SRE Agent access to my GitHub and PagerDuty accounts via MCP, uploaded my triage rubric as a markdown file, and set it to run twice a day. No more reading every ticket manually. No more asking the same "please provide more info" questions. No more morning triage sessions. What My Setup Looks Like My app's customer issues come in through GitHub. My team uses PagerDuty to track bugs and incidents. So I connected both via MCP to the SRE Agent. I also uploaded my triage logic as a .md file on how to classify issues, what info is required for each category, which labels to use, which team handles what. And since I didn't want to run this workflow manually, I set up a scheduled task to trigger it twice a day. Now it just runs. I verify its work if I want to. What the Agent Does Fetches all open, unlabeled GitHub issues Reads each issue and classifies it (bug, doc question, feature request) Checks if required info is present Posts a comment asking for details if needed, or acknowledges the issue Adds appropriate labels Creates a PagerDuty incident for bugs ready for engineering Moves to the next issue How I Built It: Step by Step Let me walk you through exactly how I set this up inside SRE Agent. Step 1: Create an SRE Agent I created a new SRE Agent in the Azure portal. Since this workflow triages GitHub issues and not Azure resources, I didn't need to configure any Azure resource groups or subscriptions. Just an agent. Step 2: Connect MCP Servers I added two MCP servers to give the agent access to my tools: GitHub MCP– Fetch issues, post comments, add labels PagerDuty MCP – Create incidents for bugs that need dev team's attention MCP (Model Context Protocol) lets you bring any API into the agent. If your tool has an API, you can connect it. Step 3: Create Subagents I created two focused subagents, each with a specific job and only the tools it needs: GitHub Issue Triager "You are expert in triaging GitHub issues, classifying them into categories such as user needs to supply additional information, bug, documentation question, or feature request. Use the knowledge base to search for the right document that helps you with performing this triaging. Perform all actions autonomously without waiting for user input. Hand off to Incident Creator for the issues you classified as bugs." Tools: GitHub MCP (issues, labels, comments) Incident Creator Here "You are expert in managing incidents in PagerDuty, listing services, incidents, creating incidents with all details. Once done, hand off back to GitHub Issue Triager." Tools: PagerDuty MCP (services, incidents) The handoff between them creates a workflow. They collaborate without human involvement. Step 4: Add Your Knowledge I uploaded my triage logic as a .md file to the agent's knowledge base. This is my rubric - my mental model for how to triage issues: How do I classify bugs vs. doc questions vs. feature requests? What info is required for each category? What labels do I use? When should an incident be created? Which team handles which type of issue? I wrote it down the way I'd explain it to a new teammate. The agent searches and follows it. Step 5: Add a Scheduled Task I didn't want to trigger this workflow manually every time. SRE Agent supports scheduled tasks, workflows that run automatically on a cadence. I set up a trigger to run twice a day: morning and evening. Now the workflow is fully automated. Here is the end to end automated agentic workflow to triage customer tickets. Why MCP Matters Every team uses different tools. Maybe your customer issues live in Zendesk, incidents go to ServiceNow and you use Jira or Azure DevOps. SRE Agent doesn't lock you in. With MCP, you connect to whatever tools you already use. The agent orchestrates across them. That's the extensibility model: your tools, your workflow, orchestrated by the agent. The Result Before: 2 hours every morning sorting tickets. After: By the time anyone logs in, issues are labeled, missing-info requests are posted, urgent bugs have incidents, and feature requests are acknowledged. Your team can finally focus on the complex stuff not sorting tickets. Why This Matters Faster response times. Issues get acknowledged in minutes, not days. Consistent classification. No "this should have been a P1" moments. No tickets bouncing between teams. Happier customers. They get a response immediately even if it's just "we're looking into it." Focus on what matters. Your team should be solving problems, not sorting them. The Bottom Line Triage isn't the job, it's the tax on the job. It quietly eats the hours your team could spend building, debugging, and shipping. You don't need to build a custom triage bot. You don't need to wire up webhooks and write glue code. You give the SRE agent your tools, your logic, and a schedule and it handles the sorting. Use GitHub? Connect GitHub. Use Zendesk? Connect Zendesk. PagerDuty, ServiceNow, Jira - whatever your team runs on, the agent meets you there. Stop sorting tickets. Start shipping. A Few Tips Test MCP endpoints before configuring them in the SRE agent Give each subagent only the tools it needs, don't enable everything Start read-only until you trust the classification, then enable comments Do You Still Want to Triage Issues Manually? What tools does your team use to track customer-reported issues and incidents? Let us know in the comments, we'd love to hear how you'd use this workflow with your stack. Is triage your most toilsome workflow or is there something even worse eating your team's time? Let us know in the comments.
Unlocking Application Modernisation with GitHub Copilot
AI-driven modernisation is unlocking new opportunities you may not have even considered yet. It's also allowing organisations to re-evaluate previously discarded modernisation attempts that were considered too hard, complex or simply didn't have the skills or time to do. During Microsoft Build 2025, we were introduced to the concept of Agentic AI modernisation and this post from Ikenna Okeke does a great job of summarising the topic - Reimagining App Modernisation for the Era of AI | Microsoft Community Hub. This blog post however, explores the modernisation opportunities that you may not even have thought of yet, the business benefits, how to start preparing your organisation, empowering your teams, and identifying where GitHub Copilot can help. I’ve spent the last 8 months working with customers exploring usage of GitHub Copilot, and want to share what my team members and I have discovered in terms of new opportunities to modernise, transform your applications, bringing some fun back into those migrations! Let’s delve into how GitHub Copilot is helping teams update old systems, move processes to the cloud, and achieve results faster than ever before. Background: The Modernisation Challenge (Then vs Now) Modernising legacy software has always been hard. In the past, teams faced steep challenges: brittle codebases full of technical debt, outdated languages (think decades-old COBOL or VB6), sparse documentation, and original developers long gone. Integrating old systems with modern cloud services often requiring specialised skills that were in short supply – for example, check out this fantastic post from Arvi LiVigni (@arilivigni ) which talks about migrating from COBOL “the number of developers who can read and write COBOL isn’t what it used to be,” making those systems much harder to update". Common pain points included compatibility issues, data migrations, high costs, security vulnerabilities, and the constant risk that any change could break critical business functions. It’s no wonder many modernisation projects stalled or were “put off” due to their complexity and risk. So, what’s different now (circa 2025) compared to two years ago? In a word: Intelligent AI assistance. Tools like GitHub Copilot have emerged as AI pair programmers that dramatically lower the barriers to modernisation. Arvi’s post talks about how only a couple of years ago, developers had to comb through documentation and Stack Overflow for clues when deciphering old code or upgrading frameworks. Today, GitHub Copilot can act like an expert co-developer inside your IDE, ready to explain mysterious code, suggest updates, and even rewrite legacy code in modern languages. This means less time fighting old code and more time implementing improvements. As Arvi says “nine times out of 10 it gives me the right answer… That speed – and not having to break out of my flow – is really what’s so impactful.” In short, AI coding assistants have evolved from novel experiments to indispensable tools, reimagining how we approach software updates and cloud adoption. I’d also add from my own experience – the models we were using 12 months ago have already been superseded by far superior models with ability to ingest larger context and tackle even further complexity. It's easier to experiment, and fail, bringing more robust outcomes – with such speed to create those proof of concepts, experimentation and failing faster, this has also unlocked the ability to test out multiple hypothesis’ and get you to the most confident outcome in a much shorter space of time. Modernisation is easier now because AI reduces the heavy lifting. Instead of reading the 10,000-line legacy program alone, a developer can ask Copilot to explain what the code does or even propose a refactored version. Rather than manually researching how to replace an outdated library, they can get instant recommendations for modern equivalents. These advancements mean that tasks which once took weeks or months can now be done in days or hours – with more confidence and less drudgery - more fun! The following sections will dive into specific opportunities unlocked by GitHub Copilot across the modernisation journey which you may not even have thought of. Modernisation Opportunities Unlocked by Copilot Modernising an application isn’t just about updating code – it involves bringing everyone and everything up to speed with cloud-era practices. Below are several scenarios and how GitHub Copilot adds value, with the specific benefits highlighted: 1. AI-Assisted Legacy Code Refactoring and Upgrades Instant Code Comprehension: GitHub Copilot can explain complex legacy code in plain English, helping developers quickly understand decades-old logic without scouring scarce documentation. For example, you can highlight a cryptic COBOL or C++ function and ask Copilot to describe what it does – an invaluable first step before making any changes. This saves hours and reduces errors when starting a modernisation effort. Automated Refactoring Suggestions: The AI suggests modern replacements for outdated patterns and APIs, and can even translate code between languages. For instance, Copilot can help convert a COBOL program into JavaScript or C# by recognising equivalent constructs. It also uses transformation tools (like OpenRewrite for Java/.NET) to systematically apply code updates – e.g. replacing all legacy HTTP calls with a modern library in one sweep. Developers remain in control, but GitHub Copilot handles the tedious bulk edits. Bulk Code Upgrades with AI: GitHub Copilot’s App Modernisation capabilities can analyse an entire codebase and generate a detailed upgrade plan, then execute many of the code changes automatically. It can upgrade framework versions (say from .NET Framework 4.x to .NET 6, or Java 8 to Java 17) by applying known fix patterns and even fixing compilation errors after the upgrade. Teams can finally tackle those hundreds of thousand-line enterprise applications – a task that could take multiple years with GitHub Copilot handling the repetitive changes. Technical Debt Reduction: By cleaning up old code and enforcing modern best practices, GitHub Copilot helps chip away at years of technical debt. The modernised codebase is more maintainable and stable, which lowers the long-term risk hanging over critical business systems. Notably, the tool can even scan for known security vulnerabilities during refactoring as it updates your code. In short, each legacy component refreshed with GitHub Copilot comes out safer and easier to work on, instead of remaining a brittle black box. 2. Accelerating Cloud Migration and Azure Modernisation Guided Azure Migration Planning: GitHub Copilot can assess a legacy application’s cloud readiness and recommend target Azure services for each component. For instance, it might suggest migrating an on-premises database to Azure SQL, moving file storage to Azure Blob Storage, and converting background jobs to Azure Functions. This provides a clear blueprint to confidently move an app from servers to Azure PaaS. One-Click Cloud Transformations: GitHub Copilot comes with predefined migration tasksthat automate the code changes required for cloud adoption. With one click, you can have the AI apply dozens of modifications across your codebase. For example: File storage: Replace local file read/writes with Azure Blob Storage SDK calls. Email/Comms: Swap out SMTP email code for Azure Communication Services or SendGrid. Identity: Migrate authentication from Windows AD to Azure AD (Entra ID) libraries. Configuration: Remove hard-coded configurations and use Azure App Configuration or Key Vault for secrets. GitHub Copilot performs these transformations consistently, following best practices (like using connection strings from Azure settings). After applying the changes, it even fixes any compile errors automatically, so you’re not left with broken builds. What used to require reading countless Azure migration guides is now handled in minutes. Automated Validation & Deployment: Modernisation doesn’t stop at code changes. GitHub Copilot can also generate unit tests to validate that the application still behaves correctly after the migration. It helps ensure that your modernised, cloud-ready app passes all its checks before going live. When you’re ready to deploy, GitHub Copilot can produce the necessary Infrastructure-as-Code templates (e.g. Azure Resource Manager Bicep files or Terraform configs) and even set up CI/CD pipeline scripts for you. In other words, the AI can configure the Azure environment and deployment process end-to-end. This dramatically reduces manual effort and error, getting your app to the cloud faster and with greater confidence. Integrations: GitHub Copilot also helps tackle larger migration scenarios that were previously considered too complex. For example, many enterprises want to retire expensive proprietary integration platforms like MuleSoft or Apigee and use Azure-native services instead, but rewriting hundreds of integration workflows was daunting. Now, GitHub Copilot can assist in translating those workflows: for instance, converting an Apigee API proxy into an Azure API Management policy, or a MuleSoft integration into an Azure Logic App. Multi-Cloud Migrations: if you plan to consolidate from other clouds into Azure, GitHub Copilot can suggest equivalent Azure services and SDK calls to replace AWS or GCP-specific code. These AI-assisted conversions significantly cut down the time needed to reimplement functionality on Azure. The business impact can be substantial. By lowering the effort of such migrations, GitHub Copilot makes it feasible to pursue opportunities that deliver big cost savings and simplification. 3. Boosting Developer Productivity and Quality Instant Unit Tests (TDD Made Easy): Writing tests for old code can be tedious, but GitHub Copilot can generate unit test cases on the fly. Developers can highlight an existing function and ask Copilot to create tests; it will produce meaningful test methods covering typical and edge scenarios. This makes it practical to apply test-driven development practices even to legacy systems – you can quickly build a safety net of tests before refactoring. By catching bugs early through these AI-generated tests, teams gain confidence to modernise code without breaking things. It essentially injects quality into the process from the start, which is crucial for successful modernisation. DevOps Automation: GitHub Copilot helps modernise your build and deployment process as well. It can draft CI/CD pipeline configurations, Dockerfiles, Kubernetes manifests, and other DevOps scripts by leveraging its knowledge of common patterns. For example, when setting up a GitHub Actions workflow to deploy your app, GitHub Copilot will autocomplete significant parts (like build steps, test runs, deployment jobs) based on the project structure. This not only saves time but also ensures best practices (proper caching, dependency installation, etc.) are followed by default. Microsoft even provides an extension where you can describe your Azure infrastructure needs in plain language and have GitHub Copilot generate the corresponding templates and pipeline YAML. By automating these pieces, teams can move to cloud-based, automated deployments much faster. Behaviour-Driven Development Support: Teams practicing BDD write human-readable scenarios (e.g. using Gherkin syntax) describing application behaviour. GitHub Copilot’s AI is adept at interpreting such descriptions and suggesting step definition code or test implementations to match. For instance, given a scenario “When a user with no items checks out, then an error message is shown,” GitHub Copilot can draft the code for that condition or the test steps required. This helps bridge the gap between non-technical specifications and actual code. It makes BDD more efficient and accessible, because even if team members aren’t strong coders, the AI can translate their intent into working code that developers can refine. Quality and Consistency: By using AI to handle boilerplate and repetitive tasks, developers can focus more on high-value improvements. GitHub Copilot’s suggestions are based on a vast corpus of code, which often means it surfaces well-structured, idiomatic patterns. Starting from these suggestions, developers are less likely to introduce errors or reinvent the wheel, which leads to more consistent code quality across the project. The AI also often reminds you of edge cases (for example, suggesting input validation or error handling code that might be missed), contributing to a more robust application. In practice, many teams find that adopting GitHub Copilot results in fewer bugs and quicker code reviews, as the code is cleaner on the first pass. It’s like having an extra set of eyes on every pull request, ensuring standards are met. Business Benefits of AI-Powered Modernisation Bringing together the technical advantages above, what’s the payoff for the business and stakeholders? Modernising with GitHub Copilot can yield multiple tangible and intangible benefits: Accelerated Time-to-Market: Modernisation projects that might have taken a year can potentially be completed in a few months, or an upgrade that took weeks can be done in days. This speed means you can deliver new features to customers sooner and respond faster to market changes. It also reduces downtime or disruption since migrations happen more swiftly. Cost Savings: By automating repetitive work and reducing the effort required from highly paid senior engineers, GitHub Copilot can trim development costs. Faster project completion also means lower overall project cost. Additionally, running modernised apps on cloud infrastructure (with updated code) often lowers operational costs due to more efficient resource usage and easier maintenance. There’s also an opportunity cost benefit: developers freed up by Copilot can work on other value-adding projects in parallel. Improved Quality & Reliability: GitHub Copilot’s contributions to testing, bug-fixing, and even security (like patching known vulnerabilities during upgrades) result in more robust applications. Modernised systems have fewer outages and security incidents than shaky legacy ones. Stakeholders will appreciate that with GitHub Copilot, modernisation doesn’t mean “trading one set of bugs for another” – instead, you can increase quality as you modernise (GitHub’s research noted higher code quality when using Copilot, as developers are less likely to introduce errors or skip tests). Business Agility: A modernised application (especially one refactored for cloud) is typically more scalable and adaptable. New integrations or features can be added much faster once the platform is up-to-date. GitHub Copilot helps clear the modernisation hurdle, after which the business can innovate on a solid, flexible foundation (for example, once a monolith is broken into microservices or moved to Azure PaaS, you can iterate on it much faster in the future). AI-assisted modernisation thus unlocks future opportunities (like easier expansion, integrations, AI features, etc.) that were impractical on the legacy stack. Employee Satisfaction and Innovation: Developer happiness is a subtle but important benefit. When tedious work is handled by AI, developers can spend more time on creative tasks – designing new features, improving user experience, exploring new technologies. This can foster a culture of innovation. Moreover, being seen as a company that leverages modern tools (like AI Copilot) helps attract and retain top tech talent. Teams that successfully modernise critical systems with Copilot will gain confidence to tackle other ambitious projects, creating a positive feedback loop of improvement. To sum up, GitHub Copilot acts as a force-multiplier for application modernisation. It enables organisations to do more with less: convert legacy “boat anchors” into modern, cloud-enabled assets rapidly, while improving quality and developer morale. This aligns IT goals with business goals – faster delivery, greater efficiency, and readiness for the future. Call to Action: Embrace the Future of Modernisation GitHub Copilot has proven to be a catalyst for transforming how we approach legacy systems and cloud adoption. If you’re excited about the possibilities, here are next steps and what to watch for: Start Experimenting: If you haven’t already, try GitHub Copilot on a sample of your code. Use Copilot or Copilot Chat to explain a piece of old code or generate a unit test. Seeing it in action on your own project can build confidence and spark ideas for where to apply it. Identify a Pilot Project: Look at your application portfolio for a candidate that’s ripe for modernisation – maybe a small legacy service that could be moved to Azure, or a module that needs a refactor. Use GitHub Copilot to assess and estimate the effort. Often, you’ll find tasks once deemed “too hard” might now be feasible. Early successes will help win support for larger initiatives. Stay Tuned for Our Upcoming Blog Series: This post is just the beginning. In forthcoming posts, we’ll dive deeper into: Setting Up Your Organisation for Copilot Adoption: Practical tips on preparing your enterprise environment – from licensing and security considerations to training programs. We’ll discuss best practices (like running internal awareness campaigns, defining success metrics, and creating Copilot champions in your teams) to ensure a smooth rollout. Empowering Your Colleagues: How to foster a culture that embraces AI assistance. This includes enabling continuous learning, sharing prompt techniques and knowledge bases, and addressing any scepticism. We’ll cover strategies to support developers in using Copilot effectively, so that everyone from new hires to veteran engineers can amplify their productivity. Identifying High-Impact Modernisation Areas: Guidance on spotting where GitHub Copilot can add the most value. We’ll look at different domains – code, cloud, tests, data – and how to evaluate opportunities (for example, using telemetry or feedback to find repetitive tasks suited for AI, or legacy components with high ROI if modernised). Engage and Share: As you start leveraging Copilot for modernisation, share your experiences and results. Success stories (even small wins like “GitHub Copilot helped reduce our code review times” or “we migrated a component to Azure in 1 sprint”) can build momentum within your organisation and the broader community. We invite you to discuss and ask questions in the comments or in our tech community forums. Take a look at the new App Modernisation Guidance—a comprehensive, step-by-step playbook designed to help organisations: Understand what to modernise and why Migrate and rebuild apps with AI-first design Continuously optimise with built-in governance and observability Modernisation is a journey, and AI is the new compass and Copilot to guide the way. By embracing tools like GitHub Copilot, you position your organisation to break through modernisation barriers that once seemed insurmountable. The result is not just updated software, but a more agile, cloud-ready business and a happier, more productive development team. Now is the time to take that step. Empower your team with Copilot, and unlock the full potential of your applications and your developers. Stay tuned for more insights in our next posts, and let’s modernise what’s possible together!Reimagining AI Ops with Azure SRE Agent: New Automation, Integration, and Extensibility features
Azure SRE Agent offers intelligent and context aware automation for IT operations. Enhanced by customer feedback from our preview, the SRE Agent has evolved into an extensible platform to automate and manage tasks across Azure and other environments. Built on an Agentic DevOps approach - drawing from proven practices in internal Azure operations - the Azure SRE Agent has already saved over 20,000 engineering hours across Microsoft product teams operations, delivering strong ROI for teams seeking sustainable AIOps. An Operations Agent that adapts to your playbooks Azure SRE Agent is an AI powered operations automation platform that empowers SREs, DevOps, IT operations, and support teams to automate tasks such as incident response, customer support, and developer operations from a single, extensible agent. Its value proposition and capabilities have evolved beyond diagnosis and mitigation of Azure issues, to automating operational workflows and seamless integration with the standards and processes used in your organization. SRE Agent is designed to automate operational work and reduce toil, enabling developers and operators to focus on high-value tasks. By streamlining repetitive and complex processes, SRE Agent accelerates innovation and improves reliability across cloud and hybrid environments. In this article, we will look at what’s new and what has changed since the last update. What’s New: Automation, Integration, and Extensibility Azure SRE Agent just got a major upgrade. From no-code automation to seamless integrations and expanded data connectivity, here’s what’s new in this release: No-code Sub-Agent Builder: Rapidly create custom automations without writing code. Flexible, event-driven triggers: Instantly respond to incidents and operational changes. Expanded data connectivity: Unify diagnostics and troubleshooting across more data sources. Custom actions: Integrate with your existing tools and orchestrate end-to-end workflows via MCP. Prebuilt operational scenarios: Accelerate deployment and improve reliability out of the box. Unlike generic agent platforms, Azure SRE Agent comes with deep integrations, prebuilt tools, and frameworks specifically for IT, DevOps, and SRE workflows. This means you can automate complex operational tasks faster and more reliably, tailored to your organization’s needs. Sub-Agent Builder: Custom Automation, No Code Required Empower teams to automate repetitive operational tasks without coding expertise, dramatically reducing manual workload and development cycles. This feature helps address the need for targeted automation, letting teams solve specific operational pain points without relying on one-size-fits-all solutions. Modular Sub-Agents: Easily create custom sub-agents tailored to your team’s needs. Each sub-agent can have its own instructions, triggers, and toolsets, letting you automate everything from outage response to customer email triage. Prebuilt System Tools: Eliminate the inefficiency of creating basic automation from scratch, and choose from a rich library of hundreds of built-in tools for Azure operations, code analysis, deployment management, diagnostics, and more. Custom Logic: Align automation to your unique business processes by defining your automation logic and prompts, teaching the agent to act exactly as your workflow requires. Flexible Triggers: Automate on Your Terms Invoke the agent to respond automatically to mission-critical events, not wait for manual commands. This feature helps speed up incident response and eliminate missed opportunities for efficiency. Multi-Source Triggers: Go beyond chat-based interactions, and trigger the agent to automatically respond to Incident Management and Ticketing systems like PagerDuty and ServiceNow, Observability Alerting systems like Azure Monitor Alerts, or even on a cron-based schedule for proactive monitoring and best-practices checks. Additional trigger sources such as GitHub issues, Azure DevOps pipelines, email, etc. will be added over time. This means automation can start exactly when and where you need it. Event-Driven Operations: Integrate with your CI/CD, monitoring, or support systems to launch automations in response to real-world events - like deployments, incidents, or customer requests. Vital for reducing downtime, it ensures that business-critical actions happen automatically and promptly. Expanded Data Connectivity: Unified Observability and Troubleshooting Integrate data, enabling comprehensive diagnostics and troubleshooting and faster, more informed decision-making by eliminating silos and speeding up issue resolution. Multiple Data Sources: The agent can now read data from Azure Monitor, Log Analytics, and Application Insights based on its Azure role-based access control (RBAC). Additional observability data sources such as Dynatrace, New Relic, Datadog, and more can be added via the Remote Model Context Protocol (MCP) servers for these tools. This gives you a unified view for diagnostics and automation. Knowledge Integration: Rather than manually detailing every instruction in your prompt, you can upload your Troubleshooting Guide (TSG) or Runbook directly, allowing the agent to automatically create an execution plan from the file. You may also connect the agent to resources like SharePoint, Jira, or documentation repositories through Remote MCP servers, enabling it to retrieve needed files on its own. This approach utilizes your organization’s existing knowledge base, streamlining onboarding and enhancing consistency in managing incidents. Azure SRE Agent is also building multi-agent collaboration by integrating with PagerDuty and Neubird, enabling advanced, cross-platform incident management and reliability across diverse environments. Custom Actions: Automate Anything, Anywhere Extend automation beyond Azure and integrate with any tool or workflow, solving the problem of limited automation scope and enabling end-to-end process orchestration. Out-of-the-Box Actions: Instantly automate common tasks like running azcli, kubectl, creating GitHub issues, or updating Azure resources, reducing setup time and operational overhead. Communication Notifications: The SRE Agent now features built-in connectors for Outlook, enabling automated email notifications, and for Microsoft Teams, allowing it to post messages directly to Teams channels for streamlined communication. Bring Your Own Actions: Drop in your own Remote MCP servers to extend the agent’s capabilities to any custom tool or workflow. Future-proof your agentic DevOps by automating proprietary or emerging processes with confidence. Prebuilt Operations Scenarios Address common operational challenges out of the box, saving teams time and effort while improving reliability and customer satisfaction. Incident Response: Minimize business impact and reduce operational risk by automating detection, diagnosis, and mitigation of your workload stack. The agent has built-in runbooks for common issues related to many Azure resource types including Azure Kubernetes Service (AKS), Azure Container Apps (ACA), Azure App Service, Azure Logic Apps, Azure Database for PostgreSQL, Azure CosmosDB, Azure VMs, etc. Support for additional resource types is being added continually, please see product documentation for the latest information. Root Cause Analysis & IaC Drift Detection: Instantly pinpoint incident causes with AI-driven root cause analysis including automated source code scanning via GitHub and Azure DevOps integration. Proactively detect and resolve infrastructure drift by comparing live cloud environments against source-controlled IaC, ensuring configuration consistency and compliance. Handle Complex Investigations: Enable the deep investigation mode that uses a hypothesis-driven method to analyze possible root causes. It collects logs and metrics, tests hypotheses with iterative checks, and documents findings. The process delivers a clear summary and actionable steps to help teams accurately resolve critical issues. Incident Analysis: The integrated dashboard offers a comprehensive overview of all incidents managed by the SRE Agent. It presents essential metrics, including the number of incidents reviewed, assisted, and mitigated by the agent, as well as those awaiting human intervention. Users can leverage aggregated visualizations and AI-generated root cause analyses to gain insights into incident processing, identify trends, enhance response strategies, and detect areas for improvement in incident management. Inbuilt Agent Memory: The new SRE Agent Memory System transforms incident response by institutionalizing the expertise of top SREs - capturing, indexing, and reusing critical knowledge from past incidents, investigations, and user guidance. Benefit from faster, more accurate troubleshooting, as the agent learns from both successes and mistakes, surfacing relevant insights, runbooks, and mitigation strategies exactly when needed. This system leverages advanced retrieval techniques and a domain-aware schema to ensure every on-call engagement is smarter than the last, reducing mean time to resolution (MTTR) and minimizing repeated toil. Automatically gain a continuously improving agent that remembers what works, avoids past pitfalls, and delivers actionable guidance tailored to the environment. GitHub Copilot and Azure DevOps Integration: Automatically triage, respond to, and resolve issues raised in GitHub or Azure DevOps. Integration with modern development platforms such as GitHub Copilot coding agent increases efficiency and ensures that issues are resolved faster, reducing bottlenecks in the development lifecycle. Ready to get started? Azure SRE Agent home page Product overview Pricing Page Pricing Calculator Pricing Blog Demo recordings Deployment samples What’s Next? Give us feedback: Your feedback is critical - You can Thumbs Up / Thumbs Down each interaction or thread, or go to the “Give Feedback” button in the agent to give us in-product feedback - or you can create issues or just share your thoughts in our GitHub repo at https://github.com/microsoft/sre-agent. We’re just getting started. In the coming months, expect even more prebuilt integrations, expanded data sources, and new automation scenarios. We anticipate continuous growth and improvement throughout our agentic AI platforms and services to effectively address customer needs and preferences. Let us know what Ops toil you want to automate next!Agentic Applications on Azure Container Apps with Microsoft Foundry
Agents have exploded in popularity over the last year, reshaping not only the kinds of applications developers build but also the underlying architectures required to run them. As agentic applications grow more complex by invoking tools, collaborating with other services, and orchestrating multi-step workflows, architectures are naturally shifting toward microservice patterns. Azure Container Apps is purpose-built for this world: a fully managed, serverless platform designed to run independent, composable services with autoscaling, pay-per-second pricing, and seamless app-to-app communication. By combining Azure Container Apps with the Microsoft Agent Framework (MAF) and Microsoft Foundry, developers can run containerized agents on ACA while using Foundry to visualize and monitor how those agents behave. Azure Container Apps handles scalable, high-performance execution of agent logic, and Microsoft Foundry lights up rich observability for reasoning, planning, tool calls, and errors through its integrated monitoring experience. Together, they form a powerful foundation for building and operating modern, production-grade agentic applications. In this blog, we’ll walk through how to build an agent running on Azure Container Apps using Microsoft Agent Framework and OpenTelemetry, and then connect its telemetry to Microsoft Foundry so you can see your ACA-hosted agent directly in the Foundry monitoring experience. Prerequisites An Azure account with an active subscription. If you don't have one, you can create one for free. Ensure you have a Microsoft Foundry project setup. If you don’t already have one, you can create a project from the Azure AI Foundry portal. Azure Developer CLI (azd) installed Git installed The Sample Agent The complete sample code is available in this repo and can be deployed end-to-end with a single command. It's a basic currency agent. This sample deploys: An Azure Container Apps environment An agent built with Microsoft Agent Framework (MAF) OpenTelemetry instrumentation using the Azure Monitor exporter Application Insights to collect agent telemetry A Microsoft Foundry resource Environment wiring to integrate the agent with Microsoft Foundry Deployment Steps Clone the repository: git clone https://github.com/cachai2/foundry-3p-agents-samples.git cd foundry-3p-agents-samples/azure Authenticate with Azure: azd auth login Set the following azd environment variable azd env set AZURE_AI_MODEL_DEPLOYMENT_NAME gpt-4.1-mini Deploy to Azure azd up This provisions your Azure Container App, Application Insights, logs pipeline and required environment variables. While deployment runs, let’s break down how the code becomes compatible with Microsoft Foundry. 1. Setting up the agent in Azure Container Apps To integrate with Microsoft Foundry, the agent needs two essential capabilities: Microsoft Agent Framework (MAF): Handles agent logic, tools, schema-driven execution, and emits standardized gen_ai.* spans. OpenTelemetry: Sends the required agent/model/tool spans to Application Insights, which Microsoft Foundry consumes for visualization and monitoring. Although this sample uses MAF, the same pattern works with any agent framework. MAF and LangChain currently provide the richest telemetry support out-of-the-box. 1.1 Configure Microsoft Agent Framework (MAF) The agent includes: A tool (get_exchange_rate) An agent created by ChatAgent A runtime manager (AgentRuntime) A FastAPI app exposing /invoke Telemetry is enabled using two components already present in the repo: configure_azure_monitor: Configures OpenTelemetry + Azure Monitor exporter + auto-instrumentation. setup_observability(): Enables MAF’s additional spans (gen_ai.*, tool spans, agent lifecycle spans). From the repo (_configure_observability()): from azure.monitor.opentelemetry import configure_azure_monitor from agent_framework.observability import setup_observability from opentelemetry.sdk.resources import Resource def _configure_observability() -> None: configure_azure_monitor( resource=Resource.create({"service.name": SERVICE_NAME}), connection_string=APPLICATION_INSIGHTS_CONNECTION_STRING, ) setup_observability(enable_sensitive_data=False) This gives you: gen_ai.model.* spans (model usage + token counts) tool call spans agent lifecycle & execution spans HTTP + FastAPI instrumentation Standardized telemetry required by Microsoft Foundry No manual TracerProvider wiring or OTLP exporter setup is needed. 1.2 OpenTelemetry Setup (Azure Monitor Exporter) In this sample, OpenTelemetry is fully configured by Azure Monitor’s helper: import os from azure.monitor.opentelemetry import configure_azure_monitor from opentelemetry.sdk.resources import Resource from agent_framework.observability import setup_observability SERVICE_NAME = os.getenv("ACA_SERVICE_NAME", "aca-currency-exchange-agent") configure_azure_monitor( resource=Resource.create({"service.name": SERVICE_NAME}), connection_string=os.getenv("APPLICATION_INSIGHTS_CONNECTION_STRING"), ) # Enable Microsoft Agent Framework gen_ai/tool spans on top of OTEL setup_observability(enable_sensitive_data=False) This automatically: Installs and configures the OTEL tracer provider Enables batching + exporting of spans Adds HTTP/FastAPI/Requests auto-instrumentation Sends telemetry to Application Insights Adds MAF’s agent + tool spans All required environment variables (such as APPLICATION_INSIGHTS_CONNECTION_STRING) are injected automatically by azd up. 2. Deploy the Model and Test Your Agent Once azd up completes, you're ready to deploy a model to the Microsoft Foundry instance and test it. Find the resource name of your deployed Azure AI Services from azd up and navigate to it. From there, open it in Microsoft Foundry, navigate to the Model Catalog and add the gpt-4.1-mini model. Find the resource name of your deployed Azure Container App and navigate to it. Copy the application URL Set your container app URL environment variable in your terminal. (The below commands are for WSL.) export APP_URL="Your container app URL" Now, go back to your terminal and run the following curl command to invoke the agent curl -X POST "$APP_URL/invoke" \ -H "Content-Type: application/json" \ -d '{ "prompt": "How do I convert 100 USD to EUR?" }' 3. Verifying Telemetry to Application Insights Once your Container App starts, you can validate telemetry: Open the Application Insights resource created by azd up Go to Logs Run these queries (make sure you're in KQL mode not simple mode) Check MAF-genAI spans: dependencies | where timestamp > ago(3h) | extend genOp = tostring(customDimensions["gen_ai.operation.name"]), genSys = tostring(customDimensions["gen_ai.system"]), reqModel = tostring(customDimensions["gen_ai.request.model"]), resModel = tostring(customDimensions["gen_ai.response.model"]) | summarize count() by genOp, genSys, reqModel, resModel | order by count_ desc Check agent + tools: dependencies | where timestamp > ago(1h) | extend genOp = tostring(customDimensions["gen_ai.operation.name"]), agent = tostring(customDimensions["gen_ai.agent.name"]), tool = tostring(customDimensions["gen_ai.tool.name"]) | where genOp in ("agent.run", "invoke_agent", "execute_tool") | project timestamp, genOp, agent, tool, name, target, customDimensions | order by timestamp desc If telemetry is flowing, you’re ready to plug your agent into Microsoft Foundry. 4. Connect Application Insights to Microsoft Foundry Microsoft Foundry uses your Application Insights resource to power: Agent monitoring Tool call traces Reasoning graphs Multi-agent orchestration views Error analysis To connect: Navigate to Monitoring in the left navigation pane of the Microsoft Foundry portal. Select the Application analytics tab. Select your application insights resource created from azd up Connect the resource to your AI Foundry project. Note: If you are unable to add your application insights connection this way, you may need to follow the following: Navigate to the Overview of your Foundry project -> Open in management center -> Connected resources -> New Connection -> Application Insights Foundry will automatically start ingesting: gen_ai.* spans tool spans agent lifecycle spans workflow traces No additional configuration is required. 5. Viewing Dashboards & Traces in Microsoft Foundry Once your Application Insights connection is added, you can view your agent’s telemetry directly in Microsoft Foundry’s Monitoring experience. 5.1 Monitoring The Monitoring tab shows high-level operational metrics for your application, including: Total inference calls Average call duration Overall success/error rate Token usage (when available) Traffic trends over time This view is useful for spotting latency spikes, increased load, or changes in usage patterns, and these visualizations are powered by the telemetry emitting from your agents in Azure Container Apps. 5.2 Traces Timeline The Tracing tab shows the full distributed trace of each agent request, including all spans emitted by Microsoft Foundry and your Azure Container App with Microsoft Agent Framework. You can see: Top-level operations such as invoke_agent, chat, and process_thread_run Tool calls like execute_tool_get_exchange_rate Internal MAF steps (create_thread, create_message, run tool) Azure credential calls (GET /msi/token) Input/output tokens and duration for each span This view gives you an end-to-end breakdown of how your agent executed, which tools it invoked, and how long each step took — essential for debugging and performance tuning. Conclusion By combining Azure Container Apps, the Microsoft Agent Framework, and OpenTelemetry, you can build agents that are not only scalable and production-ready, but also fully observable and orchestratable inside Microsoft Foundry. Container Apps provides the execution engine and autoscaling foundation, MAF supplies structured agent logic and telemetry, and Microsoft Foundry ties everything together with powerful planning, monitoring, and workflow visualization. This architecture gives you the best of both worlds: the flexibility of running your own containerized agents with the dependencies you choose, and the intelligence of Microsoft Foundry to coordinate multi-step reasoning, tool call, and cross-agent workflows. As the agent ecosystem continues to evolve, Azure Container Apps and Microsoft Foundry provide a strong, extensible foundation for building the next generation of intelligent, microservice-driven applications.
