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 documentationUnleashing the Power of Model Context Protocol (MCP): A Game-Changer in AI Integration
Artificial Intelligence is evolving rapidly, and one of the most pressing challenges is enabling AI models to interact effectively with external tools, data sources, and APIs. The Model Context Protocol (MCP) solves this problem by acting as a bridge between AI models and external services, creating a standardized communication framework that enhances tool integration, accessibility, and AI reasoning capabilities. What is Model Context Protocol (MCP)? MCP is a protocol designed to enable AI models, such as Azure OpenAI models, to interact seamlessly with external tools and services. Think of MCP as a universal USB-C connector for AI, allowing language models to fetch information, interact with APIs, and execute tasks beyond their built-in knowledge. Key Features of MCP Standardized Communication – MCP provides a structured way for AI models to interact with various tools. Tool Access & Expansion – AI assistants can now utilize external tools for real-time insights. Secure & Scalable – Enables safe and scalable integration with enterprise applications. Multi-Modal Integration – Supports STDIO, SSE (Server-Sent Events), and WebSocket communication methods. MCP Architecture & How It Works MCP follows a client-server architecture that allows AI models to interact with external tools efficiently. Here’s how it works: Components of MCP MCP Host – The AI model (e.g., Azure OpenAI GPT) requesting data or actions. MCP Client – An intermediary service that forwards the AI model's requests to MCP servers. MCP Server – Lightweight applications that expose specific capabilities (APIs, databases, files, etc.). Data Sources – Various backend systems, including local storage, cloud databases, and external APIs. Data Flow in MCP The AI model sends a request (e.g., "fetch user profile data"). The MCP client forwards the request to the appropriate MCP server. The MCP server retrieves the required data from a database or API. The response is sent back to the AI model via the MCP client. Integrating MCP with Azure OpenAI Services Microsoft has integrated MCP with Azure OpenAI Services, allowing GPT models to interact with external services and fetch live data. This means AI models are no longer limited to static knowledge but can access real-time information. Benefits of Azure OpenAI Services + MCP Integration ✔ Real-time Data Fetching – AI assistants can retrieve fresh information from APIs, databases, and internal systems. ✔ Contextual AI Responses – Enhances AI responses by providing accurate, up-to-date information. ✔ Enterprise-Ready – Secure and scalable for business applications, including finance, healthcare, and retail. Hands-On Tools for MCP Implementation To implement MCP effectively, Microsoft provides two powerful tools: Semantic Workbench and AI Gateway. Microsoft Semantic Workbench A development environment for prototyping AI-powered assistants and integrating MCP-based functionalities. Features: Build and test multi-agent AI assistants. Configure settings and interactions between AI models and external tools. Supports GitHub Codespaces for cloud-based development. Explore Semantic Workbench Workbench interface examples Microsoft AI Gateway A plug-and-play interface that allows developers to experiment with MCP using Azure API Management. Features: Credential Manager – Securely handle API credentials. Live Experimentation – Test AI model interactions with external tools. Pre-built Labs – Hands-on learning for developers. Explore AI Gateway Setting Up MCP with Azure OpenAI Services Step 1: Create a Virtual Environment First, create a virtual environment using Python: python -m venv .venv Activate the environment: # Windows venv\Scripts\activate # MacOS/Linux source .venv/bin/activate Step 2: Install Required Libraries Create a requirements.txt file and add the following dependencies: langchain-mcp-adapters langgraph langchain-openai Then, install the required libraries: pip install -r requirements.txt Step 3: Set Up OpenAI API Key Ensure you have your OpenAI API key set up: # Windows setx OPENAI_API_KEY "<your_api_key> # MacOS/Linux export OPENAI_API_KEY=<your_api_key> Building an MCP Server This server performs basic mathematical operations like addition and multiplication. Create the Server File First, create a new Python file: touch math_server.py Then, implement the server: from mcp.server.fastmcp import FastMCP # Initialize the server mcp = FastMCP("Math") MCP.tool() def add(a: int, b: int) -> int: return a + b MCP.tool() def multiply(a: int, b: int) -> int: return a * b if __name__ == "__main__": mcp.run(transport="stdio") Your MCP server is now ready to run. Building an MCP Client This client connects to the MCP server and interacts with it. Create the Client File First, create a new file: touch client.py Then, implement the client: import asyncio from mcp import ClientSession, StdioServerParameters from langchain_openai import ChatOpenAI from mcp.client.stdio import stdio_client # Define server parameters server_params = StdioServerParameters( command="python", args=["math_server.py"], ) # Define the model model = ChatOpenAI(model="gpt-4o") async def run_agent(): async with stdio_client(server_params) as (read, write): async with ClientSession(read, write) as session: await session.initialize() tools = await load_mcp_tools(session) agent = create_react_agent(model, tools) agent_response = await agent.ainvoke({"messages": "what's (4 + 6) x 14?"}) return agent_response["messages"][3].content if __name__ == "__main__": result = asyncio.run(run_agent()) print(result) Your client is now set up and ready to interact with the MCP server. Running the MCP Server and Client Step 1: Start the MCP Server Open a terminal and run: python math_server.py This starts the MCP server, making it available for client connections. Step 2: Run the MCP Client In another terminal, run: python client.py Expected Output 140 This means the AI agent correctly computed (4 + 6) x 14 using both the MCP server and GPT-4o. Conclusion Integrating MCP with Azure OpenAI Services enables AI applications to securely interact with external tools, enhancing functionality beyond text-based responses. With standardized communication and improved AI capabilities, developers can build smarter and more interactive AI-powered solutions. By following this guide, you can set up an MCP server and client, unlocking the full potential of AI with structured external interactions. Next Steps: Explore more MCP tools and integrations. Extend your MCP setup to work with additional APIs. Deploy your solution in a cloud environment for broader accessibility. For further details, visit the GitHub repository for MCP integration examples and best practices. MCP GitHub Repository MCP Documentation Semantic Workbench AI Gateway MCP Video Walkthrough MCP Blog MCP Github End to End Demo🤖 Agent Loop Demos 🤖
We announced the public preview of agent loop at Build 2025. Agent Loop is a new feature in Logic Apps to build AI Agents for use cases that span across industry domains and patterns. Here are some resources to learn more about them Logic Apps Labs - https://aka.ms/lalabs Agent in a day workshop - https://aka.ms/la-agent-in-a-day In this article, share with you use cases implemented in Logic Apps using agent loop and other features. This video shows a conversational agent that answers questions about Health Plans and their coverage. The demo features document ingestion of policy documents in AI Search and then retrieving them in Agent loop using natural language This video shows an autonomous agent that generates sales report. The demo features Python Code Interpreter which analyzed excel data and aggregates it for the LLM to reason on it This video shows a conversational agent that helps recruiters with candidate screening and interview scheduling. The demo features OBO (On-Behalf-Of) where agent uses tools in the security context of user. This video shows a conversational agent for a Utility company. The demo features multi agent orchestration using handoff, and a native chat client that supports multi turn conversations and streaming, and is secured via Entra for user authentication This video shows an autonomous Loan Approval Agent specifically that handles auto loans for a bank. The demo features an AI Agent that uses an Azure Open AI model, company's policies, and several tools to process loan application. For edge cases, huma in involved via Teams connector. This video shows an autonomous Product Return Agent for Fourth Coffee company. The returns are processed by agent based on company policy, and other criterions. In this case also, a human is involved when decisions are outside the agent's boundaries This video shows a commercial agent that grants credits for purchases of groceries and other products, for Northwind Stores. The Agent extracts financial information from an IBM Mainframe and an IBM i system to assess each requestor and updates the internal Northwind systems with the approved customers information. Multi-Agent scenario including both a codeful and declarative method of implementation. Note: This is pre-release functionality and is subject to change. If you are interested in further discussing Logic Apps codeful Agents, please fill out the following feedback form. Operations Agent (part 1): In this conversational agent, we will perform Logic Apps operations such as repair and resubmit to ensure our integration platform is healthy and processing transactions. To ensure of compliance we will ensure all operational activities are logged in ServiceNow. Operations Agent (part 2): In this autonomous agent, we will perform Logic Apps operations such as repair and resubmit to ensure our integration platform is healthy and processing transactions. To ensure of compliance we will ensure all operational activities are logged in ServiceNow.Logic Apps Aviators Newsletter - November 2025
In this issue: Ace Aviator of the Month News from our product group News from our community Ace Aviator of the Month Novembers’s Ace Aviator: Al Ghoniem What's your role and title? What are your responsibilities? As a Senior Integration Consultant, I design and deliver enterprise-grade integration on Microsoft Azure, primarily using Logic Apps Standard, API Management, Service Bus, Event Grid and Azure Functions. My remit covers reference architectures, “golden” templates, governance and FinOps guardrails, CI/CD automation (Bicep and YAML), and production-ready patterns for reliability, observability and cost efficiency. Alongside my technical work, I lead teams of consultants and engineers, helping them adopt standardised delivery models, mentor through code reviews and architectural walkthroughs, and ensure we deliver consistent, high-quality outcomes across projects. I also help teams apply decisioning patterns (embedded versus external rules) and integrate AI responsibly within enterprise workflows. Can you give us some insights into your day-to-day activities and what a typical day in your role looks like? Architecture and patterns: refining solution designs, sequence diagrams and rules models for new and existing integrations. Build and automation: evolving reusable Logic App Standard templates, Bicep modules and pipelines, embedding monitoring, alerts and identity-first security. Problem-solving: addressing performance tuning, transient fault handling, poison/DLQ flows and “design for reprocessing.” Leadership and enablement: mentoring consultants, facilitating technical discussions, and ensuring knowledge is shared across teams. Community and writing: publishing articles and examples to demystify real-world integration trade-offs. What motivates and inspires you to be an active member of the Aviators/Microsoft community? The community continuously turns hard-won lessons into reusable practices. Sharing patterns (and anti-patterns) saves others time and incidents, while learning from peers strengthens my own work. Microsoft’s product teams also listen closely, and seeing customer feedback directly shape the platform is genuinely rewarding. Looking back, what advice do you wish you had been given earlier that you'd now share with those looking to get into STEM/technology? Optimise for learning speed, not titles. Choose problems that stretch you and deliver in small, measurable increments. Master the fundamentals. Naming, idempotency, retries and observability are not glamorous but make systems dependable. Document everything. Diagrams, runbooks and ADRs multiply your impact. Understand trade-offs. Every decision buys something and costs something; acknowledge both sides clearly. Value collaboration over heroics. Ask questions, share knowledge and give credit freely. What has helped you grow professionally? Reusable scaffolding: creating golden templates and reference repositories that capture best practice once and reuse it everywhere. Feedback loops: leveraging telemetry, post-incident reviews and peer critique to improve. Teaching and mentoring: explaining concepts to others brings clarity and strengthens leadership. Cross-disciplinary curiosity: combining architecture, DevOps, FinOps and AI to address problems holistically. If you had a magic wand that could create a feature in Logic Apps, what would it be and why? "Stateful Sessions and Decisions” as a first-class capability: Built-in session state across multiple workflows, durable correlation and resumable orchestrations without external storage. A native decisioning activity with versioned decision tables and rule auditing (“why this rule fired”). A local-first developer experience with fast testing and contract validation for confident iteration. This would simplify complex, human-in-the-loop and event-driven scenarios, reduce custom plumbing, and make advanced orchestration patterns accessible to a wider audience. News from our product group Logic Apps Community Day 2025 Did you miss or want to catch up again on your favorite Logic Apps Community Day videos – jump back into action on this four hours long learning session, with 10 sessions from our Community Experts. And stay tuned for individual sessions being shared throughout the week. Announcing Parse & Chunk with Metadata in Logic Apps: Build Context-Aware RAG Agents New Parse & Chunk actions add metadata like page numbers and sentence completeness—perfect for context-aware document Q&A using Azure AI Search and Agent Loop. Introducing the RabbitMQ Connector (Public Preview) The new connector (Public Preview) lets you send and receive messages with RabbitMQ in Logic Apps Standard and Hybrid—ideal for scalable, reliable messaging across industries. News from our community EventGrid And Entra Auth In Logic Apps Standard Post by Riccardo Viglianisi Learn how to use Entra Auth for webhook authentication, ditch SAS tokens, and configure private endpoints with public access rules—perfect for secure, scalable integrations. Debugging XSLT Made Easy in VS Code: .NET-Based Debugging for Logic Apps Post by Daniel Jonathan A new .NET-based extension brings real debugging to XSLT for Logic Apps. Set breakpoints, step through transformations, and inspect variables—making XSLT development clear and productive. This is the 3 rd post in a 5 part series, so worth checking out the other posts too. Modifying the Logic App Azure Workbook: Custom Views for Multi Workflow Monitoring Post by Jeff Wessling Learn how to tailor dashboards with KQL, multi-workflow views, and context panes—boosting visibility, troubleshooting speed, and operational efficiency across your integrations. Azure AI Agents in Logic Apps: A Guide to Automate Decisions Post by Imashi Kinigama Discover how GPT-powered agents, created using Logic Apps Agent Loop, automate decisions, extract data, and adapt in real time. Build intelligent workflows with minimal effort—no hardcoding, just instructions and tools. How to Turn Logic App Connectors into MCP Servers (Step-by-Step Guide) Post by Stephen W. Thomas Learn how to expose connectors like Google Drive or Salesforce as MCP endpoints using Azure API Center—giving AI agents secure, real-time access to 1,400+ services directly from VS Code. Custom SAP MCP Server with Logic Apps Post by Sebastian Meyer Learn how to turn Logic Apps into AI-accessible tools using MCP. From workflow descriptions to Easy Auth setup and VS Code integration—this guide unlocks SAP automation with Copilot. How Azure Logic Apps as MCP Servers Accelerate AI Agent Development Post by Monisha S Turn 1,400+ connectors into AI tools with Logic Apps Standard. Build agents fast, integrate with legacy systems, and scale intelligent workflows across your organization. Designing Business Rules in Azure Logic Apps: When to Go Embedded vs External Post by Al Ghoniem Learn when to use Logic Apps' native Rules Engine or offload to Azure Functions with NRules or JSON RulesEngine. Discover hybrid patterns for scalable, testable decision automation. Syncing SharePoint with Azure Blob Storage using Logic Apps & Azure Functions for Azure AI Search Post by Daniel Jonathan Solve folder delete issues by tagging blobs with SharePoint metadata. Use Logic Apps and a custom Azure Function to clean up orphaned files and keep Azure AI Search in sync. Step-by-Step Guide: Building a Conversational Agent in Azure Logic Apps Post by Stephen W. Thomas Use Azure AI Foundry and Logic Apps Standard to create chatbots that shuffle cards, answer questions, and embed into websites—no code required, just smart workflows and EasyAuth. You can hide sensitive data from the Logic App run history Post by Francisco Leal Learn how to protect sensitive data like authentication tokens, credentials, and personal information in Logic App, so this data don’t appear in the run history, which could pose security and privacy risks.Power Up Your Open WebUI with Azure AI Speech: Quick STT & TTS Integration
Introduction Ever found yourself wishing your web interface could really talk and listen back to you? With a few clicks (and a bit of code), you can turn your plain Open WebUI into a full-on voice assistant. In this post, you’ll see how to spin up an Azure Speech resource, hook it into your frontend, and watch as user speech transforms into text and your app’s responses leap off the screen in a human-like voice. By the end of this guide, you’ll have a voice-enabled web UI that actually converses with users, opening the door to hands-free controls, better accessibility, and a genuinely richer user experience. Ready to make your web app speak? Let’s dive in. Why Azure AI Speech? We use Azure AI Speech service in Open Web UI to enable voice interactions directly within web applications. This allows users to: Speak commands or input instead of typing, making the interface more accessible and user-friendly. Hear responses or information read aloud, which improves usability for people with visual impairments or those who prefer audio. Provide a more natural and hands-free experience especially on devices like smartphones or tablets. In short, integrating Azure AI Speech service into Open Web UI helps make web apps smarter, more interactive, and easier to use by adding speech recognition and voice output features. If you haven’t hosted Open WebUI already, follow my other step-by-step guide to host Ollama WebUI on Azure. Proceed to the next step if you have Open WebUI deployed already. Learn More about OpenWeb UI here. Deploy Azure AI Speech service in Azure. Navigate to the Azure Portal and search for Azure AI Speech on the Azure portal search bar. Create a new Speech Service by filling up the fields in the resource creation page. Click on “Create” to finalize the setup. After the resource has been deployed, click on “View resource” button and you should be redirected to the Azure AI Speech service page. The page should display the API Keys and Endpoints for Azure AI Speech services, which you can use in Open Web UI. Settings things up in Open Web UI Speech to Text settings (STT) Head to the Open Web UI Admin page > Settings > Audio. Paste the API Key obtained from the Azure AI Speech service page into the API key field below. Unless you use different Azure Region, or want to change the default configurations for the STT settings, leave all settings to blank. Text to Speech settings (TTS) Now, let's proceed with configuring the TTS Settings on OpenWeb UI by toggling the TTS Engine to Azure AI Speech option. Again, paste the API Key obtained from Azure AI Speech service page and leave all settings to blank. You can change the TTS Voice from the dropdown selection in the TTS settings as depicted in the image below: Click Save to reflect the change. Expected Result Now, let’s test if everything works well. Open a new chat / temporary chat on Open Web UI and click on the Call / Record button. The STT Engine (Azure AI Speech) should identify your voice and provide a response based on the voice input. To test the TTS feature, click on the Read Aloud (Speaker Icon) under any response from Open Web UI. The TTS Engine should reflect Azure AI Speech service! Conclusion And that’s a wrap! You’ve just given your Open WebUI the gift of capturing user speech, turning it into text, and then talking right back with Azure’s neural voices. Along the way you saw how easy it is to spin up a Speech resource in the Azure portal, wire up real-time transcription in the browser, and pipe responses through the TTS engine. From here, it’s all about experimentation. Try swapping in different neural voices or dialing in new languages. Tweak how you start and stop listening, play with silence detection, or add custom pronunciation tweaks for those tricky product names. Before you know it, your interface will feel less like a web page and more like a conversation partner.📢Announcement! Python Code Interpreter in Logic Apps is now in Public Preview
As AI agents evolve, they increasingly need to do more than just respond to text—they must analyze structured data, reason over complex patterns, and perform custom computations on demand. This is especially true in real-world scenarios where users upload large CSV files and expect agents to perform tasks like exploratory data analysis or generating insights—all from natural language prompts. Why This Matters The above image captures why this matters - behind this need lies a real challenge that many businesses face today. Data is diverse, fragmented, and large. It often comes in the form of CSV files, Excel spreadsheets, or JSON—containing thousands or even millions of rows. But this raw data is rarely useful on its own. It typically requires: Cleaning and transformation Custom logic to extract insights Visualizations or summaries that make the data actionable These steps are often manual, error-prone, and time-consuming—especially for users without data science or engineering expertise. Introducing Python Code Interpreter in Logic Apps Agent Loop We’re excited to announce support for Python code execution, powered by Azure Container Apps (ACA) session pool. This capability enables Logic Apps developers to use Python Code Interpreter in their workflows and also as a tool in Agent loop. You can author the code or use LLM to write code for you. As a code interpreter tool, it Accept natural language instructions Automatically generate Python code Execute that code securely on uploaded datasets (like CSV or JSON) Return insights, visualizations, or next-step data back to the user This brings the power of a code interpreter—similar to ChatGPT’s advanced data analysis tool—right into the Logic Apps runtime. Instead of writing code or manually manipulating spreadsheets, users can now describe their intent in natural language—for example: “Find the top 5 products by revenue” “Forecast demand by region for the next quarter” “Highlight customer segments based on purchase patterns” Under the hood, Logic Apps now enables this flow by interpreting the instruction, generating Python code, executing it securely in an isolated environment, and returning usable results— summaries, forecasts, or data transformations—within the same workflow. Real-World Use Cases This opens up a wide range of possibilities for businesses looking to embed intelligence into their automation: Sales & Marketing: Upload raw sales data and get on-the-fly summaries, forecasts, or regional comparisons. Finance: Analyze expense reports, detect anomalies, or generate quarterly breakdowns from Excel exports. Operations: Clean large log files, surface exceptions, and generate insights to improve reliability. Data Exploration: Let business users ask questions like “Which region had the highest YoY growth?” without writing a single line of code. How It Works The action to execute Python code is powered by Azure Container Apps (ACA)session pool. Azure Container Apps dynamic sessions provides fast and scalable access to a code interpreter. Each code interpreter session is fully isolated by a Hyper-V boundary and is designed to run untrusted code. By enabling network isolation on ACA, your data never leaves the defined network boundaries In Logic Apps, choose the action to execute Python code. You need to create a connection to the ACA session before you use the action. The code to execute can be authored by the developer or generated by the agent Optionally, upload file to the ACA session which can then be referenced as a data source in the Python code Run the workflow to get insights/results from the action execution Getting Started We can’t wait to see developers use this feature to build powerful agents! You can find all the details about the feature and step by step guidance to use this capability in our MS Learn document. If you have any questions, comments or feedback, please reach out to us via this form: http://aka.ms/la/feedbackIntroducing Logic Apps MCP servers (Public Preview)
Using Logic Apps (Standard) as MCP servers transforms the way organizations build and manage agents by turning connectors into modular, reusable MCP tools. This approach allows each connector—whether it's for data access, messaging, or workflow orchestration—to act as a specialized capability within the MCP framework. By dynamically composing these tools into Logic Apps, developers can rapidly construct agents that are both scalable and adaptable to complex enterprise scenarios. The benefits include reduced development overhead, enhanced reusability, and a streamlined path to integrating diverse systems—all while maintaining the flexibility and power of the Logic Apps platform. Starting today, we now support creating Logic Apps MCP Servers in the following ways: Registering Logic Apps connectors as MCP servers using Azure API Center Using this approach provides a streamlined experience when building MCP servers based upon Azure Logic Apps connectors. This new experience includes selecting a managed connector and one or more of its actions to create an MCP server and its related tools. This experience also automates the creation of Logic Apps workflows and wires up Easy Auth authentication for you in a matter of minutes. Beyond the streamlined experience that we provide, customers also benefit from any MCP server created using this experience to be registered within their API Center enterprise catalogue. For admins this means they can manage their MCP servers across the enterprise. For developers, it offers a centralized catalog where MCP servers can be discovered and quickly onboarded in Agent solutions. To get started, please refer to our product documentation or our demo videos. Enabling Logic Apps as remote MCP server For customers who have existing Logic Apps (Standard) investments or who want additional control over how their MCP tools are created we are also offering the ability to enable a Logic App as an MCP server. For a Logic App to be eligible to become an MCP server, it must have the following characteristics: One or more workflows that have an HTTP Request trigger and a corresponding HTTP Response action It is recommended that your trigger has a description and your request payload has schema that includes meaningful descriptions Your host.json file has been configured to enable MCP capabilities You have created an App registration in Microsoft Entra and have configured Easy Auth in your Logic App To get started, please refer to our product documentation or our demo videos. Feedback Both of these capabilities are now available, in public preview, worldwide. If you have any questions or feedback on these MCP capabilities, we would love to hear from you. Please fill out the following form and I will follow-up with you.
Chaining and Streaming with Responses API in Azure
Responses API is an enhancement of the existing Chat Completions API. It is stateful and supports agentic capabilities. As a superset of the Chat Completions class, it continues to support functionality of chat completions. In addition, reasoning models, like GPT-5 result in better model intelligence when compared to Chat Completions. It has input flexibility, supporting a range of input types. It is currently available in the following regions on Azure and can be used with all the models available in the region. The API supports response streaming, chaining and also function calling. In the examples below, we use the gpt-5-nano model for a simple response, a chained response and streaming responses. To get started update the installed openai library. pip install --upgrade openai Simple Message 1) Build the client with the following code from openai import OpenAI client = OpenAI( base_url=endpoint, api_key=api_key, ) 2) The response received is an id which can then be used to retrieve the message. # Non-streaming request resp_id = client.responses.create( model=deployment, input=messages, ) 3) Message is retrieved using the response id from previous step response = client.responses.retrieve(resp_id.id) Chaining For a chained message, an extra step is sharing the context. This is done by sending the response id in the subsequent requests. resp_id = client.responses.create( model=deployment, previous_response_id=resp_id.id, input=[{"role": "user", "content": "Explain this at a level that could be understood by a college freshman"}] ) Streaming A different function call is used for streaming queries. client.responses.stream( model=deployment, input=messages, # structured messages ) In addition, the streaming query response has to be handled appropriately till end of event stream for event in s: # Accumulate only text deltas for clean output if event.type == "response.output_text.delta": delta = event.delta or "" text_out.append(delta) # Echo streaming output to console as it arrives print(delta, end="", flush=True) The code is available in the following github link - https://github.com/arunacarunac/ResponsesAPI Additional details are available in the following links - Azure OpenAI Responses API - Azure OpenAI | Microsoft LearnExpose REST APIs as MCP servers with Azure API Management and API Center (now in preview)
As AI-powered agents and large language models (LLMs) become central to modern application experiences, developers and enterprises need seamless, secure ways to connect these models to real-world data and capabilities. Today, we’re excited to introduce two powerful preview capabilities in the Azure API Management Platform: Expose REST APIs in Azure API Management as remote Model Context Protocol (MCP) servers Discover and manage MCP servers using API Center as a centralized enterprise registry Together, these updates help customers securely operationalize APIs for AI workloads and improve how APIs are managed and shared across organizations. Unlocking the value of AI through secure API integration While LLMs are incredibly capable, they are stateless and isolated unless connected to external tools and systems. Model Context Protocol (MCP) is an open standard designed to bridge this gap by allowing agents to invoke tools—such as APIs—via a standardized, JSON-RPC-based interface. With this release, Azure empowers you to operationalize your APIs for AI integration—securely, observably, and at scale. 1. Expose REST APIs as MCP servers with Azure API Management An MCP server exposes selected API operations to AI clients over JSON-RPC via HTTP or Server-Sent Events (SSE). These operations, referred to as “tools,” can be invoked by AI agents through natural language prompts. With this new capability, you can expose your existing REST APIs in Azure API Management as MCP servers—without rebuilding or rehosting them. Addressing common challenges Before this capability, customers faced several challenges when implementing MCP support: Duplicating development efforts: Building MCP servers from scratch often led to unnecessary work when existing REST APIs already provided much of the needed functionality. Security concerns: Server trust: Malicious servers could impersonate trusted ones. Credential management: Self-hosted MCP implementations often had to manage sensitive credentials like OAuth tokens. Registry and discovery: Without a centralized registry, discovering and managing MCP tools was manual and fragmented, making it hard to scale securely across teams. API Management now addresses these concerns by serving as a managed, policy-enforced hosting surface for MCP tools—offering centralized control, observability, and security. Benefits of using Azure API Management with MCP By exposing MCP servers through Azure API Management, customers gain: Centralized governance for API access, authentication, and usage policies Secure connectivity using OAuth 2.0 and subscription keys Granular control over which API operations are exposed to AI agents as tools Built-in observability through APIM’s monitoring and diagnostics features How it works MCP servers: In your API Management instance navigate to MCP servers Choose an API: + Create a new MCP Server and select the REST API you wish to expose. Configure the MCP Server: Select the API operations you want to expose as tools. These can be all or a subset of your API’s methods. Test and Integrate: Use tools like MCP Inspector or Visual Studio Code (in agent mode) to connect, test, and invoke the tools from your AI host. Getting started and availability This feature is now in public preview and being gradually rolled out to early access customers. To use the MCP server capability in Azure API Management: Prerequisites Your APIM instance must be on a SKUv1 tier: Premium, Standard, or Basic Your service must be enrolled in the AI Gateway early update group (activation may take up to 2 hours) Use the Azure Portal with feature flag: ➤ Append ?Microsoft_Azure_ApiManagement=mcp to your portal URL to access the MCP server configuration experience Note: Support for SKUv2 and broader availability will follow in upcoming updates. Full setup instructions and test guidance can be found via aka.ms/apimdocs/exportmcp. 2. Centralized MCP registry and discovery with Azure API Center As enterprises adopt MCP servers at scale, the need for a centralized, governed registry becomes critical. Azure API Center now provides this capability—serving as a single, enterprise-grade system of record for managing MCP endpoints. With API Center, teams can: Maintain a comprehensive inventory of MCP servers. Track version history, ownership, and metadata. Enforce governance policies across environments. Simplify compliance and reduce operational overhead. API Center also addresses enterprise-grade security by allowing administrators to define who can discover, access, and consume specific MCP servers—ensuring only authorized users can interact with sensitive tools. To support developer adoption, API Center includes: Semantic search and a modern discovery UI. Easy filtering based on capabilities, metadata, and usage context. Tight integration with Copilot Studio and GitHub Copilot, enabling developers to use MCP tools directly within their coding workflows. These capabilities reduce duplication, streamline workflows, and help teams securely scale MCP usage across the organization. Getting started This feature is now in preview and accessible to customers: https://aka.ms/apicenter/docs/mcp AI Gateway Lab | MCP Registry 3. What’s next These new previews are just the beginning. We're already working on: Azure API Management (APIM) Passthrough MCP server support We’re enabling APIM to act as a transparent proxy between your APIs and AI agents—no custom server logic needed. This will simplify onboarding and reduce operational overhead. Azure API Center (APIC) Deeper integration with Copilot Studio and VS Code Today, developers must perform manual steps to surface API Center data in Copilot workflows. We’re working to make this experience more visual and seamless, allowing developers to discover and consume MCP servers directly from familiar tools like VS Code and Copilot Studio. For questions or feedback, reach out to your Microsoft account team or visit: Azure API Management documentation Azure API Center documentation — The Azure API Management & API Center Teams🚀 New in Azure API Management: MCP in v2 SKUs + external MCP-compliant server support
Your APIs are becoming tools. Your users are becoming agents. Your platform needs to adapt. Azure API Management is becoming the secure, scalable control plane for connecting agents, tools, and APIs — with governance built in. -------------------------------------------------------------------------------------------------------------------------------------------------------------------- Today, we’re announcing two major updates to bring the power of the Model Context Protocol (MCP) in Azure API Management to more environments and scenarios: MCP support in v2 SKUs — now in public preview Expose existing MCP-compliant servers through API Management These features make it easier than ever to connect APIs and agents with enterprise-grade control—without rewriting your backends. Why MCP? MCP is an open protocol that enables AI agents—like GitHub Copilot, ChatGPT, and Azure OpenAI—to discover and invoke APIs as tools. It turns traditional REST APIs into structured, secure tools that agents can call during execution — powering real-time, context-aware workflows. Why API Management for MCP? Azure API Management is the single, secure control plane for exposing and governing MCP capabilities — whether from your REST APIs, Azure-hosted services, or external MCP-compliant runtimes. With built-in support for: Security using OAuth 2.1, Microsoft Entra ID, API keys, IP filtering, and rate limiting. Outbound token injection via Credential Manager with policy-based routing. Monitoring and diagnostics using Azure Monitor, Logs, and Application Insights. Discovery and reuse with Azure API Center integration. Comprehensive policy engine for request/response transformation, caching, validation, header manipulation, throttling, and more. …you get end-to-end governance for both inbound and outbound agent interactions — with no new infrastructure or code rewrites. ✅ What’s New? 1. MCP support in v2 SKUs Previously available only in classic tiers (Basic, Standard, Premium), MCP support is now in public preview for v2 SKUs — Basic v2, Standard v2, and Premium v2 — with no pre-requisites or manual enablement required. You can now: Expose any REST API as an MCP server in v2 SKUs Protect it with Microsoft Entra ID, keys or tokens Register tools in Azure API Center 2. Expose existing MCP-compliant servers (pass-through scenario) Already using tools hosted in Logic Apps, Azure Functions, LangChain or custom runtimes? Now you can govern those external tool servers by exposing them through API Management. Use API Management to: Secure external MCP servers with OAuth, rate limits, and Credential Manager Monitor and log usage with Azure Monitor and Application Insights Unify discovery with internal tools via Azure API Center 🔗 You bring the tools. API Management brings the governance. 🧭 What’s Next We’re actively expanding MCP capabilities in API Management: Tool-level access policies for granular governance Support for MCP resources and prompts to expand beyond tools 📚 Get Started 📘 Expose APIs as MCP servers 🌐 Connect external MCP servers 🔐 Secure access to MCP servers 🔎 Discover tools in API Center Summary Azure API Management is your single control plane for agents, tools and APIs — whether you're building internal copilots or connecting external toolchains. This preview unlocks more flexibility, less friction, and a secure foundation for the next wave of agent-powered applications. No new infrastructure. Secure by default. Built for the future.
