Using on-behalf-of flow for Entra-based MCP servers
In December, we presented a series about MCP, culminating in a session about adding authentication to MCP servers. I demoed a Python MCP server that uses Microsoft Entra for authentication, requiring users to first login to the Microsoft tenant before they could use a tool. Many developers asked how they could take the Entra integration further, like to check the user's group membership or query their OneDrive. That requires using an "on-behalf-of" flow, where the MCP server uses the user's Entra identity to call another API, like the Microsoft Graph API. In this blog post, I will explain how to use Entra with OBO flow in a Python FastMCP server. How MCP servers can use Entra authentication The MCP authorization specification is based on OAuth2, with some additional features tacked on top. Every MCP client is actually an OAuth2 client, and each MCP server is an OAuth2 resource server: MCP auth adds these features to help clients determine how to authorize a server: Protected resource metadata (PRM): Implemented on the MCP server, provides details about the authorization server and method Authorization server metadata: Implemented on the authorization server, gives URLs for OAuth2 endpoints Additionally, to allow MCP servers to work with arbitrary MCP clients, MCP auth supports either of these client registration methods: Dynamic Client Registration (DCR): Implemented on the authorization server, it can register new MCP clients as OAuth2 clients, even if it hasn't seen them before. Client ID Metadata Documents (CIMD): An alternative to DCR, this requires both the MCP client to make a CIMD document available on a server, and requires the authorization server to fetch the CIMD document for details about the client. Microsoft Entra does support authorization server metadata, but it does not support either DCR or CIMD. That's actually fine if you are building an MCP server that's only going to be used with pre-authorized clients, like if the server will only be used with VS Code or with a specific internal MCP client. But, if you are building an MCP server that can be used with arbitrary MCP clients, then either DCR or CIMD is required. So what do we do? Fortunately, the FastMCP SDK implements DCR on top of Entra using an OAuth proxy pattern. FastMCP acts as the authorization server, intercepting requests and forwarding to Entra when needed, and storing OAuth client information in a designated database (like in-memory or Cosmos DB). Let's walk through the steps to set that up. Registering the server with Entra Before the server can use Entra to authorize users, we need to register the server with Entra via an app registration. We can do registration using the Azure Portal, Azure CLI, Microsoft Graph SDK, or even Bicep. In this demo, I use the Python MS Graph SDK as it allows me to specify everything programmatically. First, I create the Entra app registration, specifying the sign-in audience (single-tenant), redirect URIs (including local MCP server, deployed MCP server, and VS Code redirect URIs), and the scopes for the exposed API. request_app = Application( display_name="FastMCP Server App", sign_in_audience="AzureADMyOrg", # Single tenant web=WebApplication( redirect_uris=[ "http://localhost:8000/auth/callback", "https://vscode.dev/redirect", "http://127.0.0.1:33418", "https://deployedurl.com/auth/callback" ], ), api=ApiApplication( oauth2_permission_scopes=[ PermissionScope( id=uuid.UUID("{" + str(uuid.uuid4()) + "}"), admin_consent_display_name="Access FastMCP Server", admin_consent_description="Allows access to the FastMCP server as the signed-in user.", user_consent_display_name="Access FastMCP Server", user_consent_description="Allow access to the FastMCP server on your behalf", is_enabled=True, value="mcp-access", type="User", )], requested_access_token_version=2, # Required by FastMCP ) ) app = await graph_client.applications.post(request_app) await graph_client.applications.by_application_id(app.id).patch( Application(identifier_uris=[f"api://{app.app_id}"])) Thanks to that configuration, when an MCP client like VS Code requests an OAuth2 token, it will request a token with the scope "api://{app.app_id}/mcp-access", and the FastMCP server will validate that incoming tokens contain that scope. Next, I create a Service Principal for that Entra app registration, which represents the Entra app in my tenant request_principal = ServicePrincipal(app_id=app.app_id, display_name=app.display_name) await graph_client.service_principals.post(request_principal) I need a way for the server to prove that it can use that Entra app registration, so I register a secret: password_credential = await graph_client.applications.by_application_id(app.id).add_password.post( AddPasswordPostRequestBody( password_credential=PasswordCredential(display_name="FastMCPSecret"))) Ideally, I would like to move away from secrets, as Entra now has support for using federated identity credentials for Entra app registrations instead, but that form of credential isn't supported yet in the FastMCP SDK. If you choose to use a secret, make sure that you store the secret securely. Granting admin consent This next step is only necessary when our MCP server wants to use an OBO flow to exchange access tokens for other resource server tokens (Graph API tokens, in this case). For the OBO flow to work, the Entra app registration needs permission to call the Graph API on behalf of users. If we controlled the client, we could force it to request the required scopes as part of the initial login dialog. However, since we are configuring this server to work with arbitrary MCP clients, we don't have that option. Instead, we grant admin consent to the Entra app for the necessary scopes, such that no Graph API consent dialog is needed. This code grants admin consent to the associated service principal for the Graph API resource and scopes: server_principal = await graph_client.service_principals_with_app_id(app.app_id).get() grant = GrantDefinition( principal_id=server_principal.id, resource_app_id="00000003-0000-0000-c000-000000000000", # Graph API scopes=["User.Read", "email", "offline_access", "openid", "profile"], target_label="server application") resource_principal = await graph_client.service_principals_with_app_id(grant.resource_app_id).get() desired_scope = grant.scope_string() await graph_client.oauth2_permission_grants.post( OAuth2PermissionGrant( client_id=grant.principal_id, consent_type="AllPrincipals", resource_id=resource_principal.id, scope=desired_scope)) If our MCP server needed to use an OBO flow with another resource server, we could request additional grants for those resources and scopes. Our Entra app registration is now ready for the MCP server, so let's move on to see the server code. Using FastMCP servers with Entra In our MCP server code, we configure FastMCP's built in AzureProvider based off the details from the Entra app registration process: auth = AzureProvider( client_id=os.environ["ENTRA_PROXY_AZURE_CLIENT_ID"], client_secret=os.environ["ENTRA_PROXY_AZURE_CLIENT_SECRET"], tenant_id=os.environ["AZURE_TENANT_ID"], base_url=entra_base_url, # MCP server URL required_scopes=["mcp-access"], client_storage=oauth_client_store, # in-memory or Cosmos DB ) To make it easy for our MCP tools to access an identifier for the currently logged in user, we define a middleware that inspects the claims of the current token using FastMCP's get_access_token() and sets the "oid" (Entra object identifier) in the state: class UserAuthMiddleware(Middleware): def _get_user_id(self): token = get_access_token() if not (token and hasattr(token, "claims")): return None return token.claims.get("oid") async def on_call_tool(self, context: MiddlewareContext, call_next): user_id = self._get_user_id() if context.fastmcp_context is not None: context.fastmcp_context.set_state("user_id", user_id) return await call_next(context) async def on_read_resource(self, context: MiddlewareContext, call_next): user_id = self._get_user_id() if context.fastmcp_context is not None: context.fastmcp_context.set_state("user_id", user_id) return await call_next(context) When we initialize the FastMCP server, we set the auth provider and include that middleware: mcp = FastMCP("Expenses Tracker", auth=auth, middleware=[UserAuthMiddleware()]) Now, every request made to the MCP server will require authentication. The server will return a 401 if a valid token isn't provided, and that 401 will prompt the MCP client to kick off the MCP authorization flow. Inside each tool, we can grab the user id from the state, and use that to customize the response for the user, like to store or query items in a database. .tool async def add_user_expense( date: Annotated[date, "Date of the expense in YYYY-MM-DD format"], amount: Annotated[float, "Positive numeric amount of the expense"], description: Annotated[str, "Human-readable description of the expense"], ctx: Context, ): """Add a new expense to Cosmos DB.""" user_id = ctx.get_state("user_id") if not user_id: return "Error: Authentication required (no user_id present)" expense_item = { "id": str(uuid.uuid4()), "user_id": user_id, "date": date.isoformat(), "amount": amount, "description": description } await cosmos_container.create_item(body=expense_item) Using OBO flow in FastMCP server Now we can move on to using an OBO flow inside an MCP tool, to access the Graph API on behalf of the user. To make it easy to exchange Entra tokens for Graph tokens, we use the Python MSAL SDK, configuring a ConfidentialClientApplication based on our Entra app registration details: confidential_client = ConfidentialClientApplication( client_id=os.environ["ENTRA_PROXY_AZURE_CLIENT_ID"], client_credential=os.environ["ENTRA_PROXY_AZURE_CLIENT_SECRET"], authority=f"https://login.microsoftonline.com/{os.environ['AZURE_TENANT_ID']}", token_cache=TokenCache(), ) Inside the tool that requires OBO, we ask MSAL to exchange the MCP access token for a Graph API access token: access_token = get_access_token() graph_resource_access_token = confidential_client.acquire_token_on_behalf_of( user_assertion=access_token.token, scopes=["https://graph.microsoft.com/.default"] ) graph_token = graph_resource_access_token["access_token"] Once we successfully acquire the token, we can use that token with the Graph API, for any operations permitted by the scopes in the admin consent granted earlier. For this example, we call the Graph API to check whether the logged in user is a member of a particular Entra group, and restrict tool usage if not: async with httpx.AsyncClient() as client: url = ("https://graph.microsoft.com/v1.0/me/transitiveMemberOf/microsoft.graph.group" f"?$filter=id eq '{group_id}'&$count=true") response = await client.get( url, headers={ "Authorization": f"Bearer {graph_token}", "ConsistencyLevel": "eventual", }) data = response.json() membership_count = data.get("@odata.count", 0) You could imagine many other ways to use an OBO flow however, like to query for more details from the Graph API, upload documents to OneDrive/SharePoint/Notes, send emails, and more! All together now For the full code, check out the open source python-mcp-demos repository, and follow the deployment steps for Entra. The most relevant code files are: auth_init.py: Creates the Entra app registration, service principal, client secret, and grants admin consent for OBO flow. auth_update.py: Updates the app registration's redirect URIs after deployment, adding the deployed server URL. auth_entra_mcp.py: The MCP server itself, configured with FastMCP's AzureProvider and tools that use OBO for group membership checks. As always, please let us know if you have further questions or ideas for other Entra integrations. Acknowledgements: Thank you to Matt Gotteiner for his guidance in implementing the OBO flow and review of the blog post.Join our free livestream series on building agents in Python
Join us for a new 6‑part livestream series where we explore the foundational concepts behind building AI agents in Python using the Microsoft Agent Framework. This series is for anyone who wants to understand how agents work—how they call tools, use memory and context, and construct workflows on top of them. Over two weeks, we’ll dive into the practical building blocks that shape real agent behavior. You’ll learn how to: 🔧 Register and structure tools 🔗 Connect local MCP servers 📚 Add context with database calls 🧠 Add memory for personalization 📈 Monitor agent behavior with OpenTelemetry ✅ Evaluate the quality of agent output Throughout the series, we’ll use Python for all live examples and share full code so you can run everything yourself. You can also follow along live using GitHub Models and GitHub Codespaces. 👉 Register for the full series. Spanish speaker? ¡Tendremos una serie para hispanohablantes! Regístrese aquí In addition to the live streams, you can also join Join the Microsoft Foundry Discord to ask follow-up questions after each stream. If you are brand new to generative AI with Python, start with our 9-part Python + AI series, which covers topics such as LLMs, embedding models, RAG, tool calling, MCP, and will prepare you perfectly for the agents series. To learn more about each live stream or register for individual sessions, scroll down: Python + Agents: Building your first agent in Python 24 February, 2026 | 6:30 PM - 7:30 PM (UTC) Coordinated Universal Time Register for the stream on Reactor In the first session of our Python + Agents series, we’ll kick things off with the fundamentals: what AI agents are, how they work, and how to build your first one using the Microsoft Agent Framework. We’ll start with the core anatomy of an agent, then walk through how tool calling works in practice—beginning with a single tool, expanding to multiple tools, and finally connecting to tools exposed through local MCP servers. We’ll conclude with the supervisor agent pattern, where a single supervisor agent coordinates subtasks across multiple subagents, by treating each agent as a tool. Along the way, we'll share tips for debugging and inspecting agents, like using the DevUI interface from Microsoft Agent Framework for interacting with agent prototypes. Python + Agents: Adding context and memory to agents 25 February, 2026 | 6:30 PM - 7:30 PM (UTC) Coordinated Universal Time Register for the stream on Reactor In the second session of our Python + Agents series, we’ll extend agents built with the Microsoft Agent Framework by adding two essential capabilities: context and memory. We’ll begin with context, commonly known as Retrieval‑Augmented Generation (RAG), and show how agents can ground their responses using knowledge retrieved from local data sources such as SQLite or PostgreSQL. This enables agents to provide accurate, domain‑specific answers based on real information rather than model hallucination. Next, we’ll explore memory—both short‑term, thread‑level context and long‑term, persistent memory. You’ll see how agents can store and recall information using solutions like Redis or open‑source libraries such as Mem0, enabling them to remember previous interactions, user preferences, and evolving tasks across sessions. By the end, you’ll understand how to build agents that are not only capable but context‑aware and memory‑efficient, resulting in richer, more personalized user experiences. Python + Agents: Monitoring and evaluating agents 26 February, 2026 | 6:30 PM - 7:30 PM (UTC) Coordinated Universal Time Register for the stream on Reactor In the third session of our Python + Agents series, we’ll focus on two essential components of building reliable agents: observability and evaluation. We’ll begin with observability, using OpenTelemetry to capture traces, metrics, and logs from agent actions. You'll learn how to instrument your agents and use a local Aspire dashboard to identify slowdowns and failures. From there, we’ll explore how to evaluate agent behavior using the Azure AI Evaluation SDK. You’ll see how to define evaluation criteria, run automated assessments over a set of tasks, and analyze the results to measure accuracy, helpfulness, and task success. By the end of the session, you’ll have practical tools and workflows for monitoring, measuring, and improving your agents—so they’re not just functional, but dependable and verifiably effective. Python + Agents: Building your first AI-driven workflows 3 March, 2026 | 6:30 PM - 7:30 PM (UTC) Coordinated Universal Time Register for the stream on Reactor In Session 4 of our Python + Agents series, we’ll explore the foundations of building AI‑driven workflows using the Microsoft Agent Framework: defining workflow steps, connecting them, passing data between them, and introducing simple ways to guide the path a workflow takes. We’ll begin with a conceptual overview of workflows and walk through their core components: executors, edges, and events. You’ll learn how workflows can be composed of simple Python functions or powered by full AI agents when a step requires model‑driven behavior. From there, we’ll dig into conditional branching, showing how workflows can follow different paths depending on model outputs, intermediate results, or lightweight decision functions. We’ll introduce structured outputs as a way to make branching more reliable and easier to maintain—avoiding vague string checks and ensuring that workflow decisions are based on clear, typed data. We'll discover how the DevUI interface makes it easier to develop workflows by visualizing the workflow graph and surfacing the streaming events during a workflow's execution. Finally, we'll dive into an E2E demo application that uses workflows inside a user-facing application with a frontend and backend. Python + Agents: Orchestrating advanced multi-agent workflows 4 March, 2026 | 6:30 PM - 7:30 PM (UTC) Coordinated Universal Time Register for the stream on Reactor In Session 5 of our Python + Agents series, we’ll go beyond workflow fundamentals and explore how to orchestrate advanced, multi‑agent workflows using the Microsoft Agent Framework. This session focuses on patterns that coordinate multiple steps or multiple agents at once, enabling more powerful and flexible AI‑driven systems. We’ll begin by comparing sequential vs. concurrent execution, then dive into techniques for running workflow steps in parallel. You’ll learn how fan‑out and fan‑in edges enable multiple branches to run at the same time, how to aggregate their results, and how concurrency allows workflows to scale across tasks efficiently. From there, we’ll introduce two multi‑agent orchestration approaches that are built into the framework. We’ll start with handoff, where control moves entirely from one agent to another based on workflow logic, which is useful for routing tasks to the right agent as the workflow progresses. We’ll then look at Magentic, a planning‑oriented supervisor that generates a high‑level plan for completing a task and delegates portions of that plan to other agents. Finally, we'll wrap up with a demo of an E2E application that showcases a concurrent multi-agent workflow in action. Python + Agents: Adding a human in the loop to agentic workflows 5 March, 2026 | 6:30 PM - 7:30 PM (UTC) Coordinated Universal Time Register for the stream on Reactor In the final session of our Python + Agents series, we’ll explore how to incorporate human‑in‑the‑loop (HITL) interactions into agentic workflows using the Microsoft Agent Framework. This session focuses on adding points where a workflow can pause, request input or approval from a user, and then resume once the human has responded. HITL is especially important because LLMs can produce uncertain or inconsistent outputs, and human checkpoints provide an added layer of accuracy and oversight. We’ll begin with the framework’s requests‑and‑responses model, which provides a structured way for workflows to ask questions, collect human input, and continue execution with that data. We'll move onto tool approval, one of the most frequent reasons an agent requests input from a human, and see how workflows can surface pending tool calls for approval or rejection. Next, we’ll cover checkpoints and resuming, which allow workflows to pause and be restarted later. This is especially important for HITL scenarios where the human may not be available immediately. We’ll walk through examples that demonstrate how checkpoints store progress, how resuming picks up the workflow state, and how this mechanism supports longer‑running or multi‑step review cycles. This session brings together everything from the series—agents, workflows, branching, orchestration—and shows how to integrate humans thoughtfully into AI‑driven processes, especially when reliability and judgment matter most.Data Security: Azure key Vault in Data bricks
Why this article? To remove the vulnerability of exposing the data base connection string in Databricks notebook directly, by using Azure key vault. Database connection strings are extremely confidential/vulnerable data, that we should not be exposed in the DataBricks notebook explicitly. Azure key vault is a secure option to read the secrets and establish connection. What do we need? Tenant Id of the app from the app registration with access to the azure key vault secrets Client Id of the of the app from the app registration with access to the azure key vault secrets Client secret of the app from the app registration with access to the azure key vault Where to find this information? Under the App registration, you can find the (application) Client Id, Directory (tenant) Id. Client secret value is found in the app registration of the service, under Manage -> Certificate & secrets. You can use an existing secret or create a new one and use it to access the key Vault secrets. Make sure the application is added with get access to read the secrets. Verify the key vault you are checking and using in Databricks is the same one with read access. You can verify this by going to the Azure key vault -> Access Policies and search for the application name. It should show up on search as below, this will confirm that the access of the application. What do we need to setup in Databricks notebook? Open your cluster and install azure.keyvault and azure-identity (installing version should be compatible with you cluster configuration, refer: https://docs.databricks.com/aws/en/libraries/package-repositories) In a new notebook, let’s start by importing the necessary modules. Your notebook would start with the modules, followed by tentatId, clientId, client secret, azure key vault URL , secretName of the connection string in the azure key vault and secretVersion. Lastly, we need to fetch the secret using the below code Vola, we have the DB connection string to perform the CRUD operations. Conclusion: By securely retrieving your database connection string from Azure Key Vault, you eliminate credential exposure and strengthen the overall security posture of your Databricks workflows. This simple shift ensures your notebooks remain clean, compliant, and production‑ready.BYO Thread Storage in Azure AI Foundry using Python
Build scalable, secure, and persistent multi-agent memory with your own storage backend As AI agents evolve beyond one-off interactions, persistent context becomes a critical architectural requirement. Azure AI Foundry’s latest update introduces a powerful capability — Bring Your Own (BYO) Thread Storage — enabling developers to integrate custom storage solutions for agent threads. This feature empowers enterprises to control how agent memory is stored, retrieved, and governed, aligning with compliance, scalability, and observability goals. What Is “BYO Thread Storage”? In Azure AI Foundry, a thread represents a conversation or task execution context for an AI agent. By default, thread state (messages, actions, results, metadata) is stored in Foundry’s managed storage. With BYO Thread Storage, you can now: Store threads in your own database — Azure Cosmos DB, SQL, Blob, or even a Vector DB. Apply custom retention, encryption, and access policies. Integrate with your existing data and governance frameworks. Enable cross-region disaster recovery (DR) setups seamlessly. This gives enterprises full control of data lifecycle management — a big step toward AI-first operational excellence. Architecture Overview A typical setup involves: Azure AI Foundry Agent Service — Hosts your multi-agent setup. Custom Thread Storage Backend — e.g., Azure Cosmos DB, Azure Table, or PostgreSQL. Thread Adapter — Python class implementing the Foundry storage interface. Disaster Recovery (DR) replication — Optional replication of threads to secondary region. Implementing BYO Thread Storage using Python Prerequisites First, install the necessary Python packages: pip install azure-ai-projects azure-cosmos azure-identity Setting Up the Storage Layer from azure.cosmos import CosmosClient, PartitionKey from azure.identity import DefaultAzureCredential import json from datetime import datetime class ThreadStorageManager: def __init__(self, cosmos_endpoint, database_name, container_name): credential = DefaultAzureCredential() self.client = CosmosClient(cosmos_endpoint, credential=credential) self.database = self.client.get_database_client(database_name) self.container = self.database.get_container_client(container_name) def create_thread(self, user_id, metadata=None): """Create a new conversation thread""" thread_id = f"thread_{user_id}_{datetime.utcnow().timestamp()}" thread_data = { 'id': thread_id, 'user_id': user_id, 'messages': [], 'created_at': datetime.utcnow().isoformat(), 'updated_at': datetime.utcnow().isoformat(), 'metadata': metadata or {} } self.container.create_item(body=thread_data) return thread_id def add_message(self, thread_id, role, content): """Add a message to an existing thread""" thread = self.container.read_item(item=thread_id, partition_key=thread_id) message = { 'role': role, 'content': content, 'timestamp': datetime.utcnow().isoformat() } thread['messages'].append(message) thread['updated_at'] = datetime.utcnow().isoformat() self.container.replace_item(item=thread_id, body=thread) return message def get_thread(self, thread_id): """Retrieve a complete thread""" try: return self.container.read_item(item=thread_id, partition_key=thread_id) except Exception as e: print(f"Thread not found: {e}") return None def get_thread_messages(self, thread_id): """Get all messages from a thread""" thread = self.get_thread(thread_id) return thread['messages'] if thread else [] def delete_thread(self, thread_id): """Delete a thread""" self.container.delete_item(item=thread_id, partition_key=thread_id) Integrating with Azure AI Foundry from azure.ai.projects import AIProjectClient from azure.identity import DefaultAzureCredential class ConversationManager: def __init__(self, project_endpoint, storage_manager): self.ai_client = AIProjectClient.from_connection_string( credential=DefaultAzureCredential(), conn_str=project_endpoint ) self.storage = storage_manager def start_conversation(self, user_id, system_prompt): """Initialize a new conversation""" thread_id = self.storage.create_thread( user_id=user_id, metadata={'system_prompt': system_prompt} ) # Add system message self.storage.add_message(thread_id, 'system', system_prompt) return thread_id def send_message(self, thread_id, user_message, model_deployment): """Send a message and get AI response""" # Store user message self.storage.add_message(thread_id, 'user', user_message) # Retrieve conversation history messages = self.storage.get_thread_messages(thread_id) # Call Azure AI with conversation history response = self.ai_client.inference.get_chat_completions( model=model_deployment, messages=[ {"role": msg['role'], "content": msg['content']} for msg in messages ] ) assistant_message = response.choices[0].message.content # Store assistant response self.storage.add_message(thread_id, 'assistant', assistant_message) return assistant_message Usage Example # Initialize storage and conversation manager storage = ThreadStorageManager( cosmos_endpoint="https://your-cosmos-account.documents.azure.com:443/", database_name="conversational-ai", container_name="threads" ) conversation_mgr = ConversationManager( project_endpoint="your-project-connection-string", storage_manager=storage ) # Start a new conversation thread_id = conversation_mgr.start_conversation( user_id="user123", system_prompt="You are a helpful AI assistant." ) # Send messages response1 = conversation_mgr.send_message( thread_id=thread_id, user_message="What is machine learning?", model_deployment="gpt-4" ) print(f"AI: {response1}") response2 = conversation_mgr.send_message( thread_id=thread_id, user_message="Can you give me an example?", model_deployment="gpt-4" ) print(f"AI: {response2}") # Retrieve full conversation history history = storage.get_thread_messages(thread_id) for msg in history: print(f"{msg['role']}: {msg['content']}") Key Highlights: Threads are stored in Cosmos DB under your control. You can attach metadata such as region, owner, or compliance tags. Integrates natively with existing Azure identity and Key Vault. Disaster Recovery & Resilience When coupled with geo-replicated Cosmos DB or Azure Storage RA-GRS, your BYO thread storage becomes resilient by design: Primary writes in East US replicate to Central US. Foundry auto-detects failover and reconnects to secondary region. Threads remain available during outages — ensuring operational continuity. This aligns perfectly with the AI-First Operational Excellence architecture theme, where reliability and observability drive intelligent automation. Best Practices Area Recommendation Security Use Azure Key Vault for credentials & encryption keys. Compliance Configure data residency & retention in your own DB. Observability Log thread CRUD operations to Azure Monitor or Application Insights. Performance Use async I/O and partition keys for large workloads. DR Enable geo-redundant storage & failover tests regularly. When to Use BYO Thread Storage Scenario Why it helps Regulated industries (BFSI, Healthcare, etc.) Maintain data control & audit trails Multi-region agent deployments Support DR and data sovereignty Advanced analytics on conversation data Query threads directly from your DB Enterprise observability Unified monitoring across Foundry + Ops The Future BYO Thread Storage opens doors to advanced use cases — federated agent memory, semantic retrieval over past conversations, and dynamic workload failover across regions. For architects, this feature is a key enabler for secure, scalable, and compliant AI system design. For developers, it means more flexibility, transparency, and integration power. Summary Feature Benefit Custom thread storage Full control over data Python adapter support Easy extensibility Multi-region DR ready Business continuity Azure-native security Enterprise-grade safety Conclusion Implementing BYO thread storage in Azure AI Foundry gives you the flexibility to build AI applications that meet your specific requirements for data governance, performance, and scalability. By taking control of your storage, you can create more robust, compliant, and maintainable AI solutions.Host ChatGPT apps on Azure Functions
This blog post is for developers learning and building ChatGPT apps. It provides an overview of how these apps work, why build them, and how to host one on Azure Functions. Chat with ChatGPT apps OpenAI recently launched ChatGPT apps. These are apps you can chat with right inside ChatGPT, extending what ChatGPT can do beyond simple chats to actions. These apps can be invoked by starting a message with the app name, or they can be suggested by ChatGPT when relevant to the conversation. The following shows an example of invoking the Booking.com app to find hotels that meet certain criteria: OpenAI calls these “a new generation of apps” that “blend familiar interactive elements…with new ways of interacting through conversation.” For users, ChatGPT apps fit directly into an interface they’re already familiar with and can use with little to no learning. For developers, building these apps is great way to get them in the hands of ChatGPT’s 800 million users without having to build custom frontends or worry about distribution and discovery. The following summarizes key benefits of ChatGPT apps: Native Integration: Once connected, users can invoke apps with a simple @ mention. Contextual Actions: Your app doesn't just "chat"—it does. It can fetch real-time data or execute actions. Massive Distribution and Easy Discovery: ChatGPT has added an app directory and just announced that they’re accepting submissions. Apps in the directory are exposed ChatGPT’s massive user base. ChatGPT apps are remote MCP servers ChatGPT apps are simply remote MCP servers that expose tools, but with two notable distinctions: Their tools use metadata to specify UI elements that should be rendered when it returns a result The UI elements are exposed as MCP resources. ChatGPT invokes tools the same way agents invoke tools on any MCP server. The difference is the added ability to render the tool results in a custom UI that’s embedded in the chat as an iFrame. A UI can include buttons, text boxes, maps, and other components that users can interact with. Instead of calling a RESTful API, the UI can trigger additional tool calls in the MCP server as the user interacts with it. Learn more about building the custom UI . For example, when the Zillow app returns results to the user’s question, the results are home listings and a map that users can interact with: Since ChatGPT apps are just MCP servers, any existing server you may have can be turned into a ChatGPT app. To do that, you must ensure the server uses the streamable HTTP transport if it doesn’t already and then find a place to host it. Hosting remote MCP servers While there are many hosting platforms available, Azure Functions is uniquely positioned to host remote MCP servers as the platform provides several key benefits: Scalable Infrastructure: ChatGPT apps can go viral. Azure Function’s Flex Consumption plan can handle bursty traffic during high traffic times and scale back to zero when needed Built-in auth: Keep your server secured with Azure Function’s built-in server authentication and authorization feature Serverless billing: Pay for only when the app is run instead of idle time Learn more about remote MCP servers hosted on Azure Functions. Create ChatGPT app Let’s quickly create a sample ChatGPT app that returns the weather of a place. Prerequisites Ensure you have the following prerequisites before proceeding: Azure subscription for creating Azure Functions and related resources Azure Developer CLI for deploying MCP server via infrastructure as code ChatGPT Plus subscription for testing ChatGPT app in developer mode Deploy MCP server to Azure Functions Clone this sample MCP server: `git clone https://github.com/Azure-Samples/chatgpt-app-azure-function-mcp`. Open terminal, run `azd auth login` and complete the login flow in the browser. Navigate to sample root directory, run `azd up` to deploy the server and related resources. You’ll be prompted with: Enter a unique environment name: Enter a unique name. This is the name of the resource group where all deployed resources live. Select an Azure Subscription: Pick your subscription Enter a value for the ‘location’ infrastructure: East US Once deployment completes, copy the app url for the next step. It should look like: https://<your-app>.azurewebsites.net Sample code walkthrough The sample server is built using the Python FastMCP package. You can find more information and how to test server locally in this repo. We'll walkthough the code briefly here. In main.py, you find the `get_weather_widget` resource and `get_current_weather` tool (code abbreviated here): .resource("ui://widget/current-weather.html", mime_type="text/html+skybridge") def get_weather_widget() -> str: """Interactive HTML widget to display current weather data in ChatGPT.""" # some code... @mcp.tool( annotations={ "title": "Get Current Weather", "readOnlyHint": True, "openWorldHint": True, }, meta={ "openai/outputTemplate": "ui://widget/current-weather.html", "openai/toolInvocation/invoking": "Fetching weather data", "openai/toolInvocation/invoked": "Weather data retrieved" }, ) def get_current_weather(latitude: float, longitude: float) -> ToolResult: """Get current weather for a given latitude and longitude using Open-Meteo API.""" # some code... return ToolResult( content=content_text, structured_content=data ) When you ask ChatGPT a question, it calls the MCP tool which returns a `ToolResult` containing both human-readable content (for ChatGPT to understand) and machine-readable data (`structured_content`, raw data for the widget). Because the `get_current_weather` tool specifies an `outputTemplate` in the metadata, ChatGPT fetches the corresponding widget HTML from the `get_weather_widget` resource. To return results, it creates an iframe and injects the weather results (`structured_content`) into the widget's JavaScript environment (via `window.openai.toolOutput`). The widget's JavaScript then renders the weather data into a beautiful UI. Test ChatGPT app in developer mode Turn on Developer mode in ChatGPT: Go to Settings → Connectors → Advanced → Developer mode In the chat, click + → More → Add sources The Add + button should show next to Sources. Click Add + → Connect more In the Enable apps window, look for Advanced settings. Click Create app. A form should open. Fill out the form to create the new app Name: WeatherApp MCP Server URL: Enter the MCP server endpoint, which is the app URL you previously saved with /mcp appended. Example: https://<you-app>.azurewebsites.net/mcp Authentication: Choose No Auth Check the box for “I understand and want to continue” and click Create. Once connected, you should find the server listed under Enabled apps. Test by asking ChatGPT “@WeatherApp what’s the temperature in NYC today?” Submit to ChatGPT App Directory OpenAI has opened app submission recently. Submitting the app to the App Directory makes it accessible to all users on ChatGPT. You may want to read through the submission guidelines to ensure your app meets the requirements before submitting. What’s next In this blog post, we gave an overview of ChatGPT apps and showed how to host one in Azure Functions. We’ll dedicate the next blog post to elaborate on configuring authentication and authorization for apps hosted on Azure Functions. For users familiar with the Azure Functions MCP extension, we’re working on support for MCP Resources in the extension. You’ll be able to build ChatGPT apps using the extension once that support is out. For now, you need to use the official MCP SDKs. Closing thoughts ChatGPT apps extend the ability of ChatGPT beyond chat by letting users take actions like searching for an apartment, ordering groceries, and turning an outline into slide deck with just a mention of the app name in the chat. The directory OpenAI created where developers can submit their apps reminds one of the App Store in the iPhone. It seems to be a no-brainer now that such a marketplace should be provided. Would this also be the case for ChatGPT? Do you think the introduction of these apps is a gamechanger? And are they useful for your scenarios? Share with us your thoughts!Learn how to build MCP servers with Python and Azure
We just concluded Python + MCP, a three-part livestream series where we: Built MCP servers in Python using FastMCP Deployed them into production on Azure (Container Apps and Functions) Added authentication, including Microsoft Entra as the OAuth provider All of the materials from our series are available for you to keep learning from, and linked below: Video recordings of each stream Powerpoint slides Open-source code samples complete with Azure infrastructure and 1-command deployment If you're an instructor, feel free to use the slides and code examples in your own classes. Spanish speaker? We've got you covered- check out the Spanish version of the series. 🙋🏽♂️Have follow up questions? Join our weekly office hours on Foundry Discord: Tuesdays @ 11AM PT → Python + AI Thursdays @ 8:30 AM PT → All things MCP Building MCP servers with FastMCP 📺 Watch YouTube recording In the intro session of our Python + MCP series, we dive into the hottest technology of 2025: MCP (Model Context Protocol). This open protocol makes it easy to extend AI agents and chatbots with custom functionality, making them more powerful and flexible. We demonstrate how to use the Python FastMCP SDK to build an MCP server running locally. Then we consume that server from chatbots like GitHub Copilot in VS Code, using it's tools, resources, and prompts. Finally, we discover how easy it is to connect AI agent frameworks like Langchain and Microsoft agent-framework to the MCP server. Slides for this session Code repository with examples: python-mcp-demos Deploying MCP servers to the cloud 📺 Watch YouTube recording In our second session of the Python + MCP series, we deploy MCP servers to the cloud! We walk through the process of containerizing a FastMCP server with Docker and deploying to Azure Container Apps. Then we instrument the MCP server with OpenTelemetry and observe the tool calls using Azure Application Insights and Logfire. Finally, we explore private networking options for MCP servers, using virtual networks that restrict external access to internal MCP tools and agents. Slides for this session Code repository with examples: python-mcp-demos Authentication for MCP servers 📺 Watch YouTube recording In our third session of the Python + MCP series, we explore the best ways to build authentication layers on top of your MCP servers. We start off simple, with an API key to gate access, and demonstrate a key-restricted FastMCP server deployed to Azure Functions. Then we move on to OAuth-based authentication for MCP servers that provide user-specific data. We dive deep into MCP authentication, which is built on top of OAuth2 but with additional requirements like PRM and DCR/CIMD, which can make it difficult to implement fully. We demonstrate the full MCP auth flow in the open-souce identity provider KeyCloak, and show how to use an OAuth proxy pattern to implement MCP auth on top of Microsoft Entra. Slides for this session Code repository with Container Apps examples: python-mcp-demos Code repository with Functions examples: python-mcp-demosFrom Cloud to Chip: Building Smarter AI at the Edge with Windows AI PCs
As AI engineers, we’ve spent years optimizing models for the cloud, scaling inference, wrangling latency, and chasing compute across clusters. But the frontier is shifting. With the rise of Windows AI PCs and powerful local accelerators, the edge is no longer a constraint it’s now a canvas. Whether you're deploying vision models to industrial cameras, optimizing speech interfaces for offline assistants, or building privacy-preserving apps for healthcare, Edge AI is where real-world intelligence meets real-time performance. Why Edge AI, Why Now? Edge AI isn’t just about running models locally, it’s about rethinking the entire lifecycle: - Latency: Decisions in milliseconds, not round-trips to the cloud. - Privacy: Sensitive data stays on-device, enabling HIPAA/GDPR compliance. - Resilience: Offline-first apps that don’t break when the network does. - Cost: Reduced cloud compute and bandwidth overhead. With Windows AI PCs powered by Intel and Qualcomm NPUs and tools like ONNX Runtime, DirectML, and Olive, developers can now optimize and deploy models with unprecedented efficiency. What You’ll Learn in Edge AI for Beginners The Edge AI for Beginners curriculum is a hands-on, open-source guide designed for engineers ready to move from theory to deployment. Multi-Language Support This content is available in over 48 languages, so you can read and study in your native language. What You'll Master This course takes you from fundamental concepts to production-ready implementations, covering: Small Language Models (SLMs) optimized for edge deployment Hardware-aware optimization across diverse platforms Real-time inference with privacy-preserving capabilities Production deployment strategies for enterprise applications Why EdgeAI Matters Edge AI represents a paradigm shift that addresses critical modern challenges: Privacy & Security: Process sensitive data locally without cloud exposure Real-time Performance: Eliminate network latency for time-critical applications Cost Efficiency: Reduce bandwidth and cloud computing expenses Resilient Operations: Maintain functionality during network outages Regulatory Compliance: Meet data sovereignty requirements Edge AI Edge AI refers to running AI algorithms and language models locally on hardware, close to where data is generated without relying on cloud resources for inference. It reduces latency, enhances privacy, and enables real-time decision-making. Core Principles: On-device inference: AI models run on edge devices (phones, routers, microcontrollers, industrial PCs) Offline capability: Functions without persistent internet connectivity Low latency: Immediate responses suited for real-time systems Data sovereignty: Keeps sensitive data local, improving security and compliance Small Language Models (SLMs) SLMs like Phi-4, Mistral-7B, Qwen and Gemma are optimized versions of larger LLMs, trained or distilled for: Reduced memory footprint: Efficient use of limited edge device memory Lower compute demand: Optimized for CPU and edge GPU performance Faster startup times: Quick initialization for responsive applications They unlock powerful NLP capabilities while meeting the constraints of: Embedded systems: IoT devices and industrial controllers Mobile devices: Smartphones and tablets with offline capabilities IoT Devices: Sensors and smart devices with limited resources Edge servers: Local processing units with limited GPU resources Personal Computers: Desktop and laptop deployment scenarios Course Modules & Navigation Course duration. 10 hours of content Module Topic Focus Area Key Content Level Duration 📖 00 Introduction to EdgeAI Foundation & Context EdgeAI Overview • Industry Applications • SLM Introduction • Learning Objectives Beginner 1-2 hrs 📚 01 EdgeAI Fundamentals Cloud vs Edge AI comparison EdgeAI Fundamentals • Real World Case Studies • Implementation Guide • Edge Deployment Beginner 3-4 hrs 🧠 02 SLM Model Foundations Model families & architecture Phi Family • Qwen Family • Gemma Family • BitNET • μModel • Phi-Silica Beginner 4-5 hrs 🚀 03 SLM Deployment Practice Local & cloud deployment Advanced Learning • Local Environment • Cloud Deployment Intermediate 4-5 hrs ⚙️ 04 Model Optimization Toolkit Cross-platform optimization Introduction • Llama.cpp • Microsoft Olive • OpenVINO • Apple MLX • Workflow Synthesis Intermediate 5-6 hrs 🔧 05 SLMOps Production Production operations SLMOps Introduction • Model Distillation • Fine-tuning • Production Deployment Advanced 5-6 hrs 🤖 06 AI Agents & Function Calling Agent frameworks & MCP Agent Introduction • Function Calling • Model Context Protocol Advanced 4-5 hrs 💻 07 Platform Implementation Cross-platform samples AI Toolkit • Foundry Local • Windows Development Advanced 3-4 hrs 🏭 08 Foundry Local Toolkit Production-ready samples Sample applications (see details below) Expert 8-10 hrs Each module includes Jupyter notebooks, code samples, and deployment walkthroughs, perfect for engineers who learn by doing. Developer Highlights - 🔧 Olive: Microsoft's optimization toolchain for quantization, pruning, and acceleration. - 🧩 ONNX Runtime: Cross-platform inference engine with support for CPU, GPU, and NPU. - 🎮 DirectML: GPU-accelerated ML API for Windows, ideal for gaming and real-time apps. - 🖥️ Windows AI PCs: Devices with built-in NPUs for low-power, high-performance inference. Local AI: Beyond the Edge Local AI isn’t just about inference, it’s about autonomy. Imagine agents that: - Learn from local context - Adapt to user behavior - Respect privacy by design With tools like Agent Framework, Azure AI Foundry and Windows Copilot Studio, and Foundry Local developers can orchestrate local agents that blend LLMs, sensors, and user preferences, all without cloud dependency. Try It Yourself Ready to get started? Clone the Edge AI for Beginners GitHub repo, run the notebooks, and deploy your first model to a Windows AI PC or IoT devices Whether you're building smart kiosks, offline assistants, or industrial monitors, this curriculum gives you the scaffolding to go from prototype to production.
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!Search Less, Build More: Inner Sourcing with GitHub Copilot and ADO MCP Server
Developers burn cycles context‑switching: opening five repos to find a logging example, searching a wiki for a data masking rule, scrolling chat history for the latest pipeline pattern. Organisations that I speak to are often on the path of transformational platform engineering projects but always have the fear or doubt of "what if my engineers don't use these resources". While projects like Backstage still play a pivotal role in inner sourcing and discoverability I also empathise with developers who would argue "How would I even know in the first place, which modules have or haven't been created for reuse". In this blog we explore how we can ensure organisational standards and developer satisfaction without any heavy lifting on either side, no custom model training, no rewriting or relocating of repositories and no stagnant local data. Using GitHub Copilot + Azure DevOps MCP server (with the free `code_search` extension) we turn the IDE into an organizational knowledge interface. Instead of guessing or re‑implementing, engineers can start scaffolding projects or solving issues as they would normally (hopefully using Copilot) and without extra prompting. GitHub Copilot can lean into organisational standards and ensure recommendations are made with code snippets directly generated from existing examples. What Is the Azure DevOps MCP Server + code_search Extension? MCP (Model Context Protocol) is an open standard that lets agents (like GitHub Copilot) pull in structured, on-demand context from external systems. MCP servers contain natural language explanations of the tools that the agent can utilise allowing dynamic decision making of when to implement certain toolsets over others. The Azure DevOps MCP Server is the ADO Product Team's implementation of that standard. It exposes your ADO environment in a way Copilot can consume. Out of the box it gives you access to: Projects – list and navigate across projects in your organization. Repositories – browse repos, branches, and files. Work items – surface user stories, bugs, or acceptance criteria. Wiki's – pull policies, standards, and documentation. This means Copilot can ground its answers in live ADO content, instead of hallucinating or relying only on what’s in the current editor window. The ADO server runs locally from your own machine to ensure that all sensitive project information remains within your secure network boundary. This also means that existing permissions on ADO objects such as Projects or Repositories are respected. Wiki search tooling available out of the box with ADO MCP server is very useful however if I am honest I have seen these wiki's go unused with documentation being stored elsewhere either inside the repository or in a project management tool. This means any tool that needs to implement code requires the ability to accurately search the code stored in the repositories themself. That is where the code_search extension enablement in ADO is so important. Most organisations have this enabled already however it is worth noting that this pre-requisite is the real unlock of cross-repo search. This allows for Copilot to: Query for symbols, snippets, or keywords across all repos. Retrieve usage examples from code, not just docs. Locate standards (like logging wrappers or retry policies) wherever they live. Back every recommendation with specific source lines. In short: MCP connects Copilot to Azure DevOps. code_search makes that connection powerful by turning it into a discovery engine. What is the relevance of Copilot Instructions? One of the less obvious but most powerful features of GitHub Copilot is its ability to follow instructions files. Copilot automatically looks for these files and uses them as a “playbook” for how it should behave. There are different types of instructions you can provide: Organisational instructions – apply across your entire workspace, regardless of which repo you’re in. Repo-specific instructions – scoped to a particular repository, useful when one project has unique standards or patterns. Personal instructions – smaller overrides layered on top of global rules when a local exception applies. (Stored in .github/copilot-instructions.md) In this solution, I’m using a single personal instructions file. It tells Copilot: When to search (e.g., always query repos and wikis before answering a standards question). Where to look (Azure DevOps repos, wikis, and with code_search, the code itself). How to answer (responses must cite the repo/file/line or wiki page; if no source is found, say so). How to resolve conflicts (prefer dated wiki entries over older README fragments). As a small example, a section of a Copilot instruction file could look like this: # GitHub Copilot Instructions for Azure DevOps MCP Integration This project uses Azure DevOps with MCP server integration to provide organizational context awareness. Always check to see if the Azure DevOps MCP server has a tool relevant to the user's request. ## Core Principles ### 1. Azure DevOps Integration - **Always prioritize Azure DevOps MCP tools** when users ask about: - Work items, stories, bugs, tasks - Pull requests and code reviews - Build pipelines and deployments - Repository operations and branch management - Wiki pages and documentation - Test plans and test cases - Project and team information ### 2. Organizational Context Awareness - Before suggesting solutions, **check existing organizational patterns** by: - Searching code across repositories for similar implementations - Referencing established coding standards and frameworks - Looking for existing shared libraries and utilities - Checking architectural decision records (ADRs) in wikis ### 3. Cross-Repository Intelligence - When providing code suggestions: - **Search for existing patterns** in other repositories first - **Reference shared libraries** and common utilities - **Maintain consistency** with organizational standards - **Suggest reusable components** when appropriate ## Tool Usage Guidelines ### Work Items and Project Management When users mention bugs, features, tasks, or project planning: ``` ✅ Use: wit_my_work_items, wit_create_work_item, wit_update_work_item ✅ Use: wit_list_backlogs, wit_get_work_items_for_iteration ✅ Use: work_list_team_iterations, core_list_projects The result... To test this I created 3 ADO Projects each with between 1-2 repositories. The repositories were light with only ReadMe's inside containing descriptions of the "repo" and some code snippets examples for usage. I have then created a brand-new workspace with no context apart from a Copilot instructions document (which could be part of a repo scaffold or organisation wide) which tells Copilot to search code and the wikis across all ADO projects in my demo environment. It returns guidance and standards from all available repo's and starts to use it to formulate its response. In the screenshot I have highlighted some key parts with red boxes. The first being a section of the readme that Copilot has identified in its response, that part also highlighted within CoPilot chat response. I have highlighted the rather generic prompt I used to get this response at the bottom of that window too. Above I have highlighted Copilot using the MCP server tooling searching through projects, repo's and code. Finally the largest box highlights the instructions given to Copilot on how to search and how easily these could be optimised or changed depending on the requirements and organisational coding standards. How did I implement this? Implementation is actually incredibly simple. As mentioned I created multiple projects and repositories within my ADO Organisation in order to test cross-project & cross-repo discovery. I then did the following: Enable code_search - in your Azure DevOps organization (Marketplace → install extension). Login to Azure - Use the AZ CLI to authenticate to Azure with "az login". Create vscode/mcp.json file - Snippet is provided below, the organisation name should be changed to your organisations name. Start and enable your MCP server - In the mcp.json file you should see a "Start" button. Using the snippet below you will be prompted to add your organisation name. Ensure your Copilot agent has access to the server under "tools" too. View this setup guide for full setup instructions (azure-devops-mcp/docs/GETTINGSTARTED.md at main · microsoft/azure-devops-mcp) Create a Copilot Instructions file - with a search-first directive. I have inserted the full version used in this demo at the bottom of the article. Experiment with Prompts – Start generic (“How do we secure APIs?”). Review the output and tools used and then tailor your instructions. Considerations While this is a great approach I do still have some considerations when going to production. Latency - Using MCP tooling on every request will add some latency to developer requests. We can look at optimizing usage through copilot instructions to better identify when Copilot should or shouldn't use the ADO MCP server. Complex Projects and Repositories - While I have demonstrated cross project and cross repository retrieval my demo environment does not truly simulate an enterprise ADO environment. Performance should be tested and closely monitored as organisational complexity increases. Public Preview - The ADO MCP server is moving quickly but is currently still public preview. We have demonstrated in this article how quickly we can make our Azure DevOps content discoverable. While their are considerations moving forward this showcases a direction towards agentic inner sourcing. Feel free to comment below how you think this approach could be extended or augmented for other use cases! Resources MCP Server Config (/.vscode/mcp.json) { "inputs": [ { "id": "ado_org", "type": "promptString", "description": "Azure DevOps organization name (e.g. 'contoso')" } ], "servers": { "ado": { "type": "stdio", "command": "npx", "args": ["-y", "@azure-devops/mcp", "${input:ado_org}"] } } } Copilot Instructions (/.github/copilot-instructions.md) # GitHub Copilot Instructions for Azure DevOps MCP Integration This project uses Azure DevOps with MCP server integration to provide organizational context awareness. Always check to see if the Azure DevOps MCP server has a tool relevant to the user's request. ## Core Principles ### 1. Azure DevOps Integration - **Always prioritize Azure DevOps MCP tools** when users ask about: - Work items, stories, bugs, tasks - Pull requests and code reviews - Build pipelines and deployments - Repository operations and branch management - Wiki pages and documentation - Test plans and test cases - Project and team information ### 2. Organizational Context Awareness - Before suggesting solutions, **check existing organizational patterns** by: - Searching code across repositories for similar implementations - Referencing established coding standards and frameworks - Looking for existing shared libraries and utilities - Checking architectural decision records (ADRs) in wikis ### 3. Cross-Repository Intelligence - When providing code suggestions: - **Search for existing patterns** in other repositories first - **Reference shared libraries** and common utilities - **Maintain consistency** with organizational standards - **Suggest reusable components** when appropriate ## Tool Usage Guidelines ### Work Items and Project Management When users mention bugs, features, tasks, or project planning: ``` ✅ Use: wit_my_work_items, wit_create_work_item, wit_update_work_item ✅ Use: wit_list_backlogs, wit_get_work_items_for_iteration ✅ Use: work_list_team_iterations, core_list_projects ``` ### Code and Repository Operations When users ask about code, branches, or pull requests: ``` ✅ Use: repo_list_repos_by_project, repo_list_pull_requests_by_repo ✅ Use: repo_list_branches_by_repo, repo_search_commits ✅ Use: search_code for finding patterns across repositories ``` ### Documentation and Knowledge Sharing When users need documentation or want to create/update docs: ``` ✅ Use: wiki_list_wikis, wiki_get_page_content, wiki_create_or_update_page ✅ Use: search_wiki for finding existing documentation ``` ### Build and Deployment When users ask about builds, deployments, or CI/CD: ``` ✅ Use: pipelines_get_builds, pipelines_get_build_definitions ✅ Use: pipelines_run_pipeline, pipelines_get_build_status ``` ## Response Patterns ### 1. Discovery First Before providing solutions, always discover organizational context: ``` "Let me first check what patterns exist in your organization..." → Search code, check repositories, review existing work items ``` ### 2. Reference Organizational Standards When suggesting code or approaches: ``` "Based on patterns I found in your [RepositoryName] repository..." "Following your organization's standard approach seen in..." "This aligns with the pattern established in [TeamName]'s implementation..." ``` ### 3. Actionable Integration Always offer to create or update Azure DevOps artifacts: ``` "I can create a work item for this enhancement..." "Should I update the wiki page with this new pattern?" "Let me link this to the current iteration..." ``` ## Specific Scenarios ### New Feature Development 1. **Search existing repositories** for similar features 2. **Check architectural patterns** and shared libraries 3. **Review related work items** and planning documents 4. **Suggest implementation** based on organizational standards 5. **Offer to create work items** and documentation ### Bug Investigation 1. **Search for similar issues** across repositories and work items 2. **Check related builds** and recent changes 3. **Review test results** and failure patterns 4. **Provide solution** based on organizational practices 5. **Offer to create/update** bug work items and documentation ### Code Review and Standards 1. **Compare against organizational patterns** found in other repositories 2. **Reference coding standards** from wiki documentation 3. **Suggest improvements** based on established practices 4. **Check for reusable components** that could be leveraged ### Documentation Requests 1. **Search existing wikis** for related content 2. **Check for ADRs** and technical documentation 3. **Reference patterns** from similar projects 4. **Offer to create/update** wiki pages with findings ## Error Handling If Azure DevOps MCP tools are not available or fail: 1. **Inform the user** about the limitation 2. **Provide alternative approaches** using available information 3. **Suggest manual steps** for Azure DevOps integration 4. **Offer to help** with configuration if needed ## Best Practices ### Always Do: - ✅ Search organizational context before suggesting solutions - ✅ Reference existing patterns and standards - ✅ Offer to create/update Azure DevOps artifacts - ✅ Maintain consistency with organizational practices - ✅ Provide actionable next steps ### Never Do: - ❌ Suggest solutions without checking organizational context - ❌ Ignore existing patterns and implementations - ❌ Provide generic advice when specific organizational context is available - ❌ Forget to offer Azure DevOps integration opportunities --- **Remember: The goal is to provide intelligent, context-aware assistance that leverages the full organizational knowledge base available through Azure DevOps while maintaining development efficiency and consistency.**Learn MCP from our free livestream series in December
Our Python + MCP series is a three-part, hands-on journey into one of the most important emerging technologies of 2025: MCP (Model Context Protocol) — an open standard for extending AI agents and chat interfaces with real-world tools, data, and execution environments. Whether you're building custom GitHub Copilot tools, powering internal developer agents, or creating AI-augmented applications, MCP provides the missing interoperability layer between LLMs and the systems they need to act on. Across the series, we move from local prototyping, to cloud deployment, to enterprise-grade authentication and security, all powered by Python and the FastMCP SDK. Each session builds on the last, showing how MCP servers can evolve from simple localhost services to fully authenticated, production-ready services running in the cloud — and how agents built with frameworks like Langchain and Microsoft’s agent-framework can consume them at every stage. 🔗 Register for the entire series. You can also scroll down to learn about each live stream and register for individual sessions. In addition to the live streams, you can also join office hours after each session in Foundry Discord to ask any follow-up questions. To get started with your MCP learnings before the series, check out the free MCP-for-beginners course on GitHub. Building MCP servers with FastMCP 16 December, 2025 | 6:00 PM - 7:00 PM (UTC) Coordinated Universal Time Register for the stream on Reactor In the intro session of our Python + MCP series, we dive into the hottest technology of 2025: MCP (Model Context Protocol). This open protocol makes it easy to extend AI agents and chatbots with custom functionality, making them more powerful and flexible. We demonstrate how to use the Python FastMCP SDK to build an MCP server running locally and consume that server from chatbots like GitHub Copilot. Then we build our own MCP client to consume the server. Finally, we discover how easy it is to connect AI agent frameworks like Langchain and Microsoft agent-framework to MCP servers. Deploying MCP servers to the cloud 17 December, 2025 | 6:00 PM - 7:00 PM (UTC) Coordinated Universal Time Register for the stream on Reactor In our second session of the Python + MCP series, we're deploying MCP servers to the cloud! We'll walk through the process of containerizing a FastMCP server with Docker and deploying to Azure Container Apps, and also demonstrate a FastMCP server running directly on Azure Functions. Then we'll explore private networking options for MCP servers, using virtual networks that restrict external access to internal MCP tools and agents. Authentication for MCP servers 18 December, 2025 | 6:00 PM - 7:00 PM (UTC) Coordinated Universal Time Register for the stream on Reactor In our third session of the Python + MCP series, we're exploring the best ways to build authentication layers on top of your MCP servers. That could be as simple as an API key to gate access, but for the servers that provide user-specific data, we need to use an OAuth2-based authentication flow. MCP authentication is built on top of OAuth2 but with additional requirements like PRM and DCR/CIMD, which can make it difficult to implement fully. In this session, we'll demonstrate the full MCP auth flow, and provide examples that implement MCP Auth on top of Microsoft Entra.
