Azure Networking 2025: Powering cloud innovation and AI at global scale
In 2025, Azure’s networking platform proved itself as the invisible engine driving the cloud’s most transformative innovations. Consider the construction of Microsoft’s new Fairwater AI datacenter in Wisconsin – a 315-acre campus housing hundreds of thousands of GPUs. To operate as one giant AI supercomputer, Fairwater required a single flat, ultra-fast network interconnecting every GPU. Azure’s networking team delivered: the facility’s network fabric links GPUs at 800 Gbps speeds in a non-blocking architecture, enabling 10× the performance of the world’s fastest supercomputer. This feat showcases how fundamental networking is to cloud innovation. Whether it’s uniting massive AI clusters or connecting millions of everyday users, Azure’s globally distributed network is the foundation upon which new breakthroughs are built. In 2025, the surge of AI workloads, data-driven applications, and hybrid cloud adoption put unprecedented demands on this foundation. We responded with bold network investments and innovations. Each new networking feature delivered in 2025, from smarter routing to faster gateways, was not just a technical upgrade but an innovation enabling customers to achieve more. Recapping the year’s major releases across Azure Networking services and key highlights how AI both drive and benefit from these advancements. Unprecedented connectivity for a hybrid and AI era Hybrid connectivity at scale: Azure’s network enhancements in 2025 focused on making global and hybrid connectivity faster, simpler, and ready for the next wave of AI-driven traffic. For enterprises extending on-premises infrastructure to Azure, Azure ExpressRoute private connectivity saw a major leap in capacity: Microsoft announced support for 400 Gbps ExpressRoute Direct ports (available in 2026) to meet the needs of AI supercomputing and massive data volumes. These high-speed ports – which can be aggregated into multi-terabit links – ensure that even the largest enterprises or HPC clusters can transfer data to Azure with dedicated, low-latency links. In parallel, Azure VPN Gateway performance reached new highs, with a generally available upgrade that delivers up to 20 Gbps aggregate throughput per gateway and 5 Gbps per individual tunnel. This is a 3× increase over previous limits, enabling branch offices and remote sites to connect to Azure even more seamlessly without bandwidth bottlenecks. Together, the ExpressRoute and VPN improvements give customers a spectrum of high-performance options for hybrid networking – from offices and datacenters to the cloud – supporting scenarios like large-scale data migrations, resilient multi-site architectures, and hybrid AI processing. Simplified global networking: Azure Virtual WAN (vWAN) continued to mature as the one-stop solution for managing global connectivity. Virtual WAN introduced forced tunneling for Secure Virtual Hubs (now in preview), which allows organizations to route all Internet-bound traffic from branch offices or virtual networks back to a central hub for inspection. This capability simplifies the implementation of a “backhaul to hub” security model – for example, forcing branches to use a central firewall or security appliance – without complex user-defined routing. Empowering multicloud and NVA integration: Azure recognizes that enterprise networks are diverse. Azure Route Server improvements enhanced interoperability with customer equipment and third-party network virtual appliances (NVAs). Notably, Azure Route Server now supports up to 500 virtual network connections (spokes) per route server, a significant scale boost that enables larger hub-and-spoke topologies and simplified Border Gateway Protocol (BGP) route exchange even in very large environments. This helps customers using SD-WAN appliances or custom firewalls in Azure to seamlessly learn routes from hundreds of VNet spokes – maintaining central routing control without manual configuration. Additionally, Azure Route Server introduced a preview of hub routing preference, giving admins the ability to influence BGP route selection (for example, preferring ExpressRoute over a VPN path, or vice versa). This fine-grained control means hybrid networks can be tuned for optimal performance and cost. Resilience and reliability by design Azure’s growth has been underpinned by making the network “resilient by default.” We shipped tools to help validate and improve network resiliency. ExpressRoute Resiliency Insights was released for general availability – delivering an intelligent assessment of an enterprise’s ExpressRoute setup. This feature evaluates how well your ExpressRoute circuits and gateways are architected for high availability (for example, using dual circuits in diverse locations, zone-redundant gateways, etc.) and assigns a resiliency index score as a percentage. It will highlight suboptimal configurations – such as routes advertised on only one circuit, or a gateway that isn’t zone-redundant – and provide recommendations for improvement. Moreover, Resiliency Insights includes a failover simulation tool that can test circuit redundancy by mimicking failures, so you can verify that your connections will survive real-world incidents. By proactively monitoring and testing resilience, Azure is helping customers achieve “always-on” connectivity even in the face of fiber cuts, hardware faults, or other disruptions. Security, governance, and trust in the network As enterprises entrust more core business to Azure, the platform’s networking services advanced on security and governance – helping customers achieve Zero Trust networks and high compliance with minimal complexity. Azure DNS now offers DNS Security Policies with Threat Intelligence feeds (GA). This capability allows organizations to protect their DNS queries from known malicious domains by leveraging continuously updated threat intel. For example, if a known phishing domain or C2 (command-and-control) hostname appears in DNS queries from your environment, Azure DNS can automatically block or redirect those requests. Because DNS is often the first line of detection for malware and phishing activities, this built-in filtering provides a powerful layer of defense that’s fully managed by Azure. It’s essentially a cloud-delivered DNS firewall using Microsoft’s vast threat intelligence – enabling all Azure customers to benefit from enterprise-grade security without deploying additional appliances. Network traffic governance was another focus. The introduction of forced tunneling in Azure Virtual WAN hubs (preview) shared above is a prime example where networking meets security compliance. Optimizing cloud-native and edge networks We previewed DNS intelligent traffic control features – such as filtering DNS queries to prevent data exfiltration and applying flexible recursion policies – which complement the DNS Security offering in safeguarding name resolution. Meanwhile, for load balancing across regions, Azure Traffic Manager’s behind-the-scenes upgrades (as noted earlier) improved reliability, and it’s evolving to integrate with modern container-based apps and edge scenarios. AI-powered networking: Both enabling and enabled by AI We are infusing AI into networking to make management and troubleshooting more intelligent. Networking functionality in Azure Copilot accelerates tasks like never before: it outlines the best practices instantly and troubleshooting that once required combing through docs and logs can be conversational. It effectively democratizes networking expertise, helping even smaller IT teams manage sophisticated networks by leveraging AI recommendations. The future of cloud networking in an AI world As we close out 2025, one message is clear: networking is strategic. The network is no longer a static utility – it is the adaptive circulatory system of the cloud, determining how far and fast customers can go. By delivering higher speeds, greater reliability, tighter security, and easier management, Azure Networking has empowered businesses to connect everything to anything, anywhere – securely and at scale. These advances unlock new scenarios: global supply chains running in real-time over a trusted network, multi-player AR/VR and gaming experiences delivered without lag, and AI models trained across continents. Looking ahead, AI-powered networking will become the norm. The convergence of AI and network tech means we will see more self-optimizing networks that can heal, defend, and tune themselves with minimal human intervention.Cloud Native Identity with Azure Files: Entra-only Secure Access for the Modern Enterprise
Azure Files introduces Entra only identities authentication for SMB shares, enabling cloud-only identity management without reliance on on-premises Active Directory. This advancement supports secure, seamless access to file shares from anywhere, streamlining cloud migration and modernization, and reducing operational complexity and costs.Announcing the preview of Azure Local rack aware cluster
We are excited to announce the public preview of Azure Local rack aware cluster! We previously published a blog post with a sneak peek of Azure Local rack aware cluster and now, we're excited to share more details about its architecture, features, and benefits. Overview of Azure Local rack aware cluster Azure Local rack aware cluster is an advanced architecture designed to enhance fault tolerance and data distribution within an Azure Local instance. This solution enables you to cluster machines that are strategically placed across two physical racks in different rooms or buildings, connected by high bandwidth and low latency within the same location. Each rack functions as a local availability zone, spanning layers from the operating system to Azure Local management, including Azure Local VMs. The architecture leverages top-of-rack (ToR) switches to connect machines between rooms. This direct connection supports a single storage pool, with rack aware clusters distributing data copies evenly between the two racks. Even if an entire rack encounters an issue, the other rack maintains the integrity and accessibility of the data. This design is valuable for environments needing high availability, particularly where it is essential to avoid rack-level data loss or downtime from failures like fires or power outages. Key features Starting in Azure Local version 2510, this release includes the following key features for rack aware clusters: Rack-Level Fault Tolerance & High Availability Clusters span two physical racks in separate rooms, connected by high bandwidth and low latency. Each rack acts as a local availability zone. If one rack fails, the other maintains data integrity and accessibility. Support for Multiple Configurations Architecture supports 2 machines up to 8 machines, enabling scalable deployments for a wide range of workloads. Scale-Out by Adding Machines Easily expand cluster capacity by adding machines, supporting growth and dynamic workload requirements without redeployment. Unified Storage Pool with Even Data Distribution Rack aware clusters offer a unified storage pool with Storage Spaces Direct (S2D) volume replication, automatically distributing data copies evenly across both racks. This ensures smooth failover and reduces the risk of data loss. Azure Arc Integration and Management Experience Enjoy native integration with Azure Arc, enabling consistent management and monitoring across hybrid environments—including Azure Local VMs and AKS—while maintaining the familiar Azure deployment and operational experience. Deployment Options Deploy via Azure portal or ARM templates, with new inputs and properties in the Azure portal for rack aware clusters. Provision VMs in Local Availability Zones via the Azure Portal Provision Azure Local virtual machines directly into specific local availability zones using the Azure portal, allowing for granular workload placement and enhanced resilience. Upgrade Path from Preview to GA Deploy rack aware clusters with the 2510 public preview build and update to General Availability (GA) without redeployment—protecting your investment and ensuring operational continuity. Get started The preview of rack aware cluster is now available to all interested customers. We encourage you to try it out and share your valuable feedback. To get started, visit our documentation: Overview of Azure Local rack aware clustering (Preview) - Azure Local | Microsoft Learn Stay tuned for more updates as we work towards general availability in 2026. We look forward to seeing how you leverage Azure Local rack aware cluster to power your edge workloads!
Announcing the General Availability (GA) of the Premium v2 tier of Azure API Management
Superior capacity, highest entity limits, unlimited included calls, and the most comprehensive set of features set the Premium v2 tier apart from other API Management tiers. Customers rely on the Premium v2 tier for running enterprise-wide API programs at scale, with high availability, and performance. The Premium v2 tier has a new architecture that eliminates management traffic from the customer VNet, making private networking much more secure and easier to setup. During the creation of a Premium v2 instance, you can choose between VNet injection or VNet integration (introduced in the Standard v2 tier) options. In addition, today we are also adding three new features to Premium v2: Inbound Private Link: You can now enable private endpoint connectivity to restrict inbound access to your Premium v2 instance. It can be enabled along with VNet injection or VNet integration or without a VNet. Availability zone support: Premium v2 now supports availability zones (zone redundancy) to enhance the reliability and resilience of your API gateway. Custom CA certificates: Azure API management v2 gateway can now validate TLS connections with the backend service using custom CA certificates. New and improved VNet injection Using VNet injection in Premium v2 no longer requires configuring routes or service endpoints. Customers can secure their API workloads without impacting API Management dependencies, while Microsoft can secure the infrastructure without interfering with customer API workloads. In short, the new VNet injection implementation enables both parties to manage network security and configuration settings independently and without affecting each other. You can now configure your APIs with complete networking flexibility: force tunnel all outbound traffic to on-premises, send all outbound traffic through an NVA, or add a WAF device to monitor all inbound traffic to your API Management Premium v2—all without constraints. Inbound Private Link Customers can now configure an inbound private endpoint for their API Management Premium v2 instance to allow your API consumers securely access the API Management gateway over Azure Private Link. The private endpoint uses an IP address from an Azure virtual network in which it's hosted. Network traffic between a client on your private network and API Management traverses over the virtual network and a Private Link on the Microsoft backbone network, eliminating exposure from the public internet. Further, you can configure custom DNS settings or an Azure DNS private zone to map the API Management hostname to the endpoint's private IP address. With a private endpoint and Private Link, you can: Create multiple Private Link connections to an API Management instance. Use the private endpoint to send inbound traffic on a secure connection. Apply different API Management policies based on whether traffic comes from the private endpoint. Limit incoming traffic only to private endpoints, preventing data exfiltration. Combine with inbound virtual network injection or outbound virtual network integration to provide end-to-end network isolation of your API Management clients and backend services. More details can be found here Today, only the API Management instance’s Gateway endpoint supports inbound private link connections. Each API management instance can support at most 100 Private Link connections. Availability zones Azure API Management Premium v2 now supports Availability Zones (AZ) redundancy to enhance the reliability and resilience of your API gateway. When deploying an API Management instance in an AZ-enabled region, users can choose to enable zone redundancy. This distributes the service's units, including Gateway, management plane, and developer portal, across multiple, physically separate AZs within that region. Learn how to enable AZs here. CA certificates If the API Management Gateway needs to connect to the backends secured with TLS certificates issued by private certificate authorities (CA), you need to configure custom CA certificates in the API Management instance. Custom CA certificates can be added and managed as Authorization Credentials in the Backend entities. The Backend entity has been extended with new properties allowing customers to specify a list of certificate thumbprints or subject name + issuer thumbprint pairs that Gateway should trust when establishing TLS connection with associated backend endpoint. More details can be found here. Region availability The Premium v2 tier is now generally available in six public regions (Australia East, East US2, Germany West Central, Korea Central, Norway East and UK South) with additional regions coming soon. For pricing information and regional availability, please visit the API Management pricing page. Learn more API Management v2 tiers FAQ API Management v2 tiers documentation API Management overview documentationAccelerating HPC and EDA with Powerful Azure NetApp Files Enhancements
High-Performance Computing (HPC) and Electronic Design Automation (EDA) workloads demand uncompromising performance, scalability, and resilience. Whether you're managing petabyte-scale datasets or running compute intensive simulations, Azure NetApp Files delivers the agility and reliability needed to innovate without limits.Secure, Seamless Access using Managed Identities with Azure Files SMB
As organizations evolve their application and storage environments, whether on‑premises, hybrid, or cloud, secure access is top of mind. Organizations are vigilant about protecting sensitive data while enabling agile application access across distributed environments. SMB shares are commonly used for persistent storage in applications like AKS for container workloads, web applications, and App Services. Traditional models that rely on credentials like storage account keys do not meet the demands of a Zero Trust architecture, where every access request must be verified explicitly, granted with least privilege, and designed to assume malicious access from bad actors. We are excited to announce the Public Preview of Managed Identities support with Azure Files SMB. This capability provides a secure, identity-driven approach for customer applications that eliminates credentials-based access and integrates seamlessly with MS Entra ID. Azure virtual machines, containers, and applications running in Azure can now authenticate to Azure Files using their own managed identity, and mount shares using short lived OAuth tokens over Kerberos. This unlocks secure file share access for both first party and customer applications, including Azure Kubernetes Service (AKS), Azure Functions, App Services, and other cloud native services By leveraging Managed Identities, customers gain: Zero Trust Alignment–Identity tied to a specific resource, token refreshes every hour, and no passwords or keys to manage or rotate with Azure handling end-to-end identity management Role Based Access Control – Built-in RBAC for least-privilege enforcement Compliance Mandate Resolution – Compliant with FIPS, removing need for NTLMv2 Multi-Client Support – Works with Windows and Linux clients over SMB This capability brings a secure, simple, and scalable access model that helps organizations meet industry standard security requirements while inheriting Microsoft Entra ID’s enterprise grade identity, governance, and security capabilities for file shares. Securing Real World Applications To illustrate how Managed Identities strengthen security, the following example workloads highlight where customers will benefit from this capability. Eliminate Secret Sprawl for Continuous Integration, Continuous Deployment (CI/CD) workloads Azure Files SMB provides a centralized location for storing software development artifacts generated during CI/CD pipelines. CI/CD workloads span far beyond application code, covering infrastructure updates, data engineering workflows, ML pipelines, and compliance automation, making them foundational to modern DevOps practices. Build agents in Azure DevOps or other CI/CD systems often run on both Linux and Windows, requiring a common storage backend for binaries and configuration files. Historically, these agents authenticated to Azure Files using storage account keys. With Managed Identities, build agents can now authenticate using their own identity from Microsoft Entra ID, with authorization governed through Azure RBAC. This enhances security, removes static credentials, and simplifies compliance. “Managed Identities support with SMB shares will enable us to remove dependencies on storage account keys to run our CI/CD pipelines, enabling stronger security and alignment with Zero-Trust principles." Alex Garcia, Staff Dev Ops Engineer, Unity Technologies. Secure Persistent Files Storage with Azure Kubernetes Service (AKS) Stateful AKS workloads rely on persistent volumes for configuration, logs, and application data. Previously, mounting Azure Files required storing account keys or secrets in Kubernetes. Organizations requested exceptions from their security organizations to continue using shared keys until a secure managed identities-based solution was available. With this feature, AKS clusters can authenticate directly to Azure Files SMB without storage account keys. This enables secure, token‑based access for persistent volume mounts, improving security posture and eliminating the need for exceptions to use access tied to storage account keys. Learn more in the Azure Files AKS CSI documentation. Get Started with Managed Identities with SMB Azure Files Start using Managed Identities with Azure Files today at no additional cost. This feature is supported on HDD and SSD SMB shares across all billing models. Refer to our documentation for complete set-up guidance. Whether provisioning new storage or enhancing existing deployments, this capability provides secure, enterprise‑grade access with a streamlined configuration experience. Secure your workloads today! For any questions, reach out to the team at azurefiles@microsoft.comMicrosoft 365 Local is Generally Available
In today’s digital landscape, organizations and governments are prioritizing data sovereignty to comply with local regulations, protect sensitive information, and safeguard national security. This growing demand for robust jurisdictional controls makes the Microsoft Sovereign Cloud offering especially compelling, providing flexibility and assurance for complex requirements. For those with the most stringent needs, Azure Local enables data and workloads to remain within jurisdictional borders, supporting mission-critical workloads and now expanding to include Microsoft’s productivity solutions—so customers can securely collaborate and communicate within a sovereign private cloud environment. Today, we’re excited to announce the general availability of Microsoft 365 Local. Microsoft 365 Local is a deployment framework for enabling core collaboration and communication tools—including Exchange Server, SharePoint Server, and Skype for Business Server—on Azure Local. Built on a validated reference architecture using Azure Local Premier Solutions , it provides compatibility and support for sovereign deployments. Partner-led services provide guidance on sizing and configuration, ensuring a full-stack deployment including best practices for networking and security. Managing infrastructure across a wide range of workloads is simplified with Azure as your control plane, offering cloud-consistent, at-scale management capabilities. In the Azure portal, you get full visibility into your Microsoft 365 Local deployment across the servers and clusters. All hosts and virtual machines (VMs) are Arc-enabled out of the box, providing built-in visibility into connectivity, health, updates, and security alerts and recommendations. Microsoft 365 Local leverages Azure Local’s best-in-class sovereign and security controls, including Network Security Groups managed with Software Defined Networking enabled by Azure Arc, to isolate networks and secure access to infrastructure and workloads. Azure Local also uses a secure by default strategy by applying a security baseline of over 300 settings on both the host infrastructure and the VMs running the productivity workloads. These security baselines incorporate best practices for network security, identity management, privileged access, data protection, and more—helping organizations maintain compliance and reduce risk. Customers who want to take advantage of Azure as the control plane for Microsoft 365 Local can now benefit from a seamless cloud-based infrastructure management experience, including Azure services like Azure Monitor and Microsoft Defender for Cloud—available today with Microsoft 365 Local connected to Azure. For organizations with the most stringent jurisdictional requirements that need to operate Microsoft 365 Local in a fully disconnected environment, support for Azure Local disconnected operations will be available in early 2026. To learn more about Microsoft 365 Local, visit https://aka.ms/M365LocalDocs. If you’d like to connect with an authorized partner for consultation and deployment support, reach out to your Microsoft account team or visit https://aka.ms/M365LocalSignup.
Microsoft Agent Pre-Purchase Plan: One Unified Path to Scale AI Agents
AI is now essential, and at Microsoft Ignite 2025, we introduced a new foundation for intelligent agents: Work IQ, Fabric IQ, and Foundry IQ. These three IQs represent the intelligence layer that gives agents deep context; understanding how people work, connecting to enterprise data, and orchestrating knowledge across platforms. Together with the launch of Microsoft Agent Factory, organizations now have a unified program to build, deploy, and manage agents powered by these IQs. However, deploying advanced agents can still be complicated by fragmented procurement, unpredictable budgets, and governance challenges. Organizations often have to choose between platforms like Microsoft Foundry and Copilot Studio. Each has unique strengths but using just one limits flexibility and prevents organizations from building truly optimized agents. Microsoft Agent Pre-Purchase Plan (P3) is designed to reduce the friction of this challenge. By unifying access to agentic services across both Microsoft Foundry and Copilot Studio, Microsoft Agent P3 empowers organizations to harness the full potential of the IQ layer thus removing barriers and unlocking the value of truly intelligent, context-driven agents. What is Microsoft Agent Pre-Purchase Plan and how to does it work? Microsoft Agent P3 is a one-year pay-upfront option. Customers commit upfront to a lump-sum pool of Agent Commit Units (ACU) that can be used at any time during the one-year term. Every time you consume eligible services within Microsoft Foundry and Copilot Credits* enabled agentic services, the ACUs are automatically drawn down from your P3 balance. If you use up your balance before the year ends, you can add another P3 plan or switch to pay-as-you-go. If you don’t use all your credits by the end of the year, the remaining balance expires. Pricing* *Pricing as of November 2025, subject to change. **Example if Microsoft Copilot Studio generates a retail cost of $100 based on Copilot Credit and Microsoft Foundry usage, then 100 Agent CUs (ACUs) are consumed. What is covered by the Microsoft Agent Pre-Purchase Plan? * List as of November 2025, subject to change ** Currently in Private Preview *** Microsoft reserves the right to update Copilot Credit eligible products Customer Example Suppose a customer expects to consume 1,500,000 Copilot Credit with custom agents created in Microsoft Copilot Studio. Assuming the pay-as-you-go rate for Copilot Credit to be $0.01, then at the pay-as-you-go rate, this will cost $15,000. In addition, if they are using 5000 Microsoft Foundry Provisioned Throughput Units (PTU) and assuming the pay-as-you-go rate for PTU to be $1, then at the pay-as-you-go rate, this will cost $5,000. By purchasing Tier 1 (20,000 ACUs) Microsoft Agent P3 at the cost of $19,000, it will give a 5% saving compared to the pay-as-you-go rate for the same usage. How to purchase a Microsoft Agent Pre-Purchase Plan? Sign in to the Azure portal →Reservations → + Add → Microsoft Agent Pre-Purchase Plan. Select your subscription and scope Choose your tier and complete payment. What sets Microsoft Agent Pre-Purchase Plan apart? At the heart of Microsoft Agent Pre-Purchase Plan are four pillars that redefine how organizations consume AI services: One Plan: A single offer that spans Foundry and Copilot Credits * enabled agentic services. No more siloed credits or SKU-level complexity, just one pool for all your AI workloads. Breadth of Services: Access to 32 services, from Azure AI Search and Cognitive Services to orchestration tools and Copilot-enabled experiences. One Governance Path: Simplifies procurement and budget management. Procurement teams gain visibility and control without sacrificing agility. Predictable Savings: Get discounts and avoid surprises when you choose this plan. Conclusion The Microsoft Agent Pre-Purchase Plan is designed to make your AI journey simpler, smarter, and more cost-effective. By combining the strengths of Microsoft Foundry and Copilot Studio into a single, unified offer, the plan eliminates the need to choose between platforms or manage multiple contracts. Organization benefit from predictable budgeting, streamlined procurement, and the flexibility to innovate across more than 32 agentic services—all with one pool of funds. Whether you’re just starting with AI or scaling enterprise-wide adoption, the Microsoft Agent Pre-Purchase Plan empowers you to unlock the full value of Microsoft’s agentic platform—driving innovation, efficiency, and business impact. And with support for agents built on Work IQ, Fabric IQ, and Foundry IQ, customers can be confident their solutions are grounded in the latest intelligence announced at Ignite. What’s next Read the Microsoft Agent P3 Offer MS Learn Doc Purchase Microsoft Agent P3 in your Azure Portal * Microsoft Copilot Studio, Dynamics 365 first-party agents, and Copilot Chat. Microsoft reserves the right to update Copilot Credit eligible products.Azure Intel® TDX confidential VMs momentum
Azure’s next generation of Confidential Virtual Machines powered by 5th Gen Intel® Xeon® processors (code-named Emerald Rapids) with Intel® Trust Domain Extensions (Intel® TDX) is out in preview now. This will help to enable organizations to bring confidential workloads to the cloud without code changes to applications. These instances also enable Intel® Advanced Matrix Extensions (Intel® AMX) to accelerate confidential AI scenarios. Supported SKUs include the general-purpose DCesv6-series, as well as the memory-optimized ECesv6-series. Confidential VMs are designed for tenants with high security and confidentiality requirements, providing a strong, attestable, hardware-enforced boundary. They ensure that your data and applications stay private and encrypted even while in use, keeping your sensitive code and other data encrypted in memory during processing. Improvements for next milestone As a first for Azure’s Confidential VM offerings, we are soon adding support for local NVMe SSDs for our DCedsv6-series and ECedsv6-series. These sizes are suited for storage workloads that need a balance of SSD capacity, compute, and memory. With NVMe we can achieve nearly 5× more throughput while reducing latency by about 16% compared to the previous SCSI generation. Overall, we see lower IO latency by ~27 microseconds across block size and thread count. Additionally, these TDX confidential VMs are Azure’s first offering to utilize our open-source paravisor, OpenHCL. This innovation allows us to enhance transparency with our customers, reinforcing our commitment to the "trust but verify" model. These VMs also support Azure Boost, enabling up to 205k IOPS and 4 GB/s throughput of remote storage along with 40 Gbps VM network bandwidth. Customers are excited to use TDX based Confidential VMs “At Bosch Trustworthy Collaboration Services, we’ve enrolled our collaboration platform on Azure’s latest Confidential VMs powered by Intel’s 5th Generation Xeon processors with TDX support. That means better transparency, stronger performance, and more robust verification: the foundation we need for cross-company teamwork. These improvements reinforce our capability to deliver best-in-class secure collaboration capabilities to our customers with our Trusted Collaboration Spaces.” - Dr. Sven Trieflinger, CTO Bosch Trustworthy Collaboration Services “Ensuring data security across its entire lifecycle has always been a key priority for me. Until recently, encryption for data-in-use was the missing link, preventing true end-to-end protection managed by the customer. Through collaboration with Microsoft and Intel, we have established a comprehensive ecosystem, called End-to-End Data Encryption. This ecosystem seamlessly unites data protection at rest, in transit, and now in use, thanks to the integration of Intel TDX technology. The root of trust remains Thales CipherTrust Data Security Platform, enabling us to manage and safeguard our data with confidence. Of course, leveraging that technology for our own use significantly strengthens our cyber defenses. I would like to thank Microsoft for bringing this innovation to fruition.” - Didier Espinet, Chief Information Security Officer for Thales Cyber & Digital Identity "In the public sector and other regulated industries, trust and fairness are paramount. By integrating Microsoft Azure confidential virtual machines with Intel® TDX and AMX technologies, Nuuday delivers a secure and compliant Confidential AI environment that upholds strict data sovereignty and privacy standards. These capabilities ensure sensitive information can be processed with verifiable confidentiality and integrity – while unlocking new opportunities for digital innovation." - John Henriksen, CEO, TDC Erhverv. “Arqit is delighted to partner with Microsoft and Intel on the launch of Azure’s latest Intel TDX-enabled Confidential VMs. Together we have demonstrated a combination of security-enhancing technologies to deliver provable protection of sensitive AI workloads processed across multi-region public cloud. This partnership underlines our shared commitment to giving customers full sovereign control over their data even outside of their own networks, in turn accelerating AI adoption and digital transformation.” - Jonathan Pope, VP Sales & Partnerships Offerings The DCesv6-series and DCedsv6-series VMs are designed to offer a balance of memory to vCPU ratio, with up to 128 vCPUs, and up to 512 GiB of memory. The ECesv6-series and ECedsv6-series VMs are designed to offer an even higher memory to vCPU ratio, with up to 64 vCPUs, and 512 GiB of memory. Availability We expect the DCesv6, DCedsv6, ECesv6 and ECedsv6 VMs with Intel® TDX to be generally available in the first quarter of 2026 in select US regions and Europe regions. In the meantime, please sign up for our DCesv6 and ECesv6 VM preview at aka.ms/acc/v6preview and we will contact you with further instructions.
