Join our free livestream series on using Microsoft IQ with Python
Join us for a new 3-part livestream series where we take a deep technical look at Microsoft IQ, the knowledge layer for the next generation of AI experiences. You'll learn how Foundry IQ, Work IQ, and Fabric IQ can be used to ground AI systems in organizational knowledge, workplace context, and structured business data. Our series will cover: Foundry IQ for multi-source agentic retrieval on search indexes, SharePoint, websites, and more Work IQ for user-specific retrieval of M365 data, like Teams chats, emails, and calendar events Fabric IQ for retrieval of data stored in OneLake, via Fabric ontologies and data agents Building agents with Microsoft Agent Framework to connect to Foundry IQ, Fabric IQ, and Work IQ Throughout the series, we’ll use Python for all examples and share full code so you can run everything yourself in your own Foundry projects. 👉 Register for the full series. In addition to the live streams, you can also join the Microsoft Foundry Discord to ask follow-up questions after each stream. If you are new to generative AI with Python, start with our 9-part Python + AI series, which covers topics such as LLMs, embeddings, RAG, tool calling, MCP, and agents. If you are new to Microsoft Agent Framework, watch our 6-part Python + Agent series which dives deep into agents and workflows. To learn more about each live stream or register for individual sessions, scroll down: Day 1: Foundry IQ 28 July, 2026 | 5:00 PM - 6:00 PM (UTC) Coordinated Universal Time Register for the stream on Reactor In the first session of our Microsoft IQ Deep Dive with Python series, we’ll kick things off with an introduction to the Microsoft IQ family: Foundry IQ, Work IQ, Fabric IQ, and Web IQ. We’ll then take a deeper look at Foundry IQ (Azure AI Search), exploring how it helps agents and applications work with curated knowledge and organizational context. We'll build a knowledge base and connect it to multiple knowledge sources, including the new IQs, MCP servers, and search indexes built from ingested data. Then we'll perform multi-source agentic retrieval on the knowledge base, which executes queries in parallel and merges the results with state-of-the-art ranking models. Finally, we will build an agent in Python using Microsoft Agent Framework and ground the agent's responses in results from the Foundry IQ knowledge base. All code demos will use Python and will be available in an open-source repository for you to deploy yourself. After the stream, join office hours in the Microsoft Foundry Discord to ask follow-up questions. Day 2: Work IQ 29 July, 2026 | 5:00 PM - 6:00 PM (UTC) Coordinated Universal Time Register for the stream on Reactor In the second session of our Microsoft IQ Deep Dive with Python series, we’ll focus on Work IQ and how it brings workplace context into AI-powered experiences. We’ll explore how developers can use Work IQ through APIs, A2A patterns, MCP integration, and tool-based workflows. We’ll look at two practical tool examples, then show how Work IQ can be used from Copilot and from a Microsoft Agent Framework agent. All code demos will use Python and will be available in an open-source repository for you to deploy yourself. After the stream, join office hours in the Microsoft Foundry Discord to ask follow-up questions. Day 3: Fabric IQ 30 July, 2026 | 5:00 PM - 6:00 PM (UTC) Coordinated Universal Time Register for the stream on Reactor In the final session of our Microsoft IQ Deep Dive with Python series, we’ll explore Fabric IQ and how it connects AI experiences to structured business data. We’ll introduce the key concepts behind Fabric IQ, including ontologies and data agents, and show how they help describe, organize, and reason over operational data stored in OneLake. We’ll use the Microsoft Fabric API SDK in Python to connect to Fabric IQ, so that we can programmatically configure ontologies and answer questions about our data. All code demos will use Python and will be available in an open-source repository for you to deploy yourself. After the stream, join office hours in the Microsoft Foundry Discord to ask follow-up questions.MCP Just Went Stateless — What the 2026 Spec Changes About Scaling on App Service
A couple of months ago I wrote about scaling MCP servers behind App Service's built-in load balancer. The trick back then was to lean on stateless HTTP transport so any instance could serve any request — and to make sure you turned off ARR affinity so the load balancer was actually free to spread traffic around. That post still works. But the MCP spec just caught up to it in a big way. The 2026-07-28 release candidate is the largest revision of the Model Context Protocol since it launched, and the headline change is exactly the thing we were working around: MCP is now stateless at the protocol layer. The handshake is gone, the session header is gone, and the sticky-routing-and-shared-session-store dance that horizontal deployments used to need is no longer part of the protocol at all. If you're hosting an MCP server on App Service, this is good news — and it means a few of the steps from my last post are now things the protocol does for you. Here's what changed, and what (if anything) you need to do about it. Here's the before and after, straight from the spec. In 2025-11-25 , the client POST s an initialize call to /mcp first and gets a session ID back: {"jsonrpc":"2.0","id":1,"method":"initialize", "params":{"protocolVersion":"2025-11-25","capabilities":{}, "clientInfo":{"name":"my-app","version":"1.0"}}} Heads up on timing: 2026-07-28 is a release candidate as I write this; the final spec ships July 28, 2026. It contains breaking changes, so treat this as "get ready" guidance rather than "rip everything out today." Quick recap: how we scaled MCP before In the original post, the recipe looked like this: Run the MCP server in stateless HTTP mode (the 2025-11-25 transport). Scale App Service out to N instances (the sample used three). Set clientAffinityEnabled: false so there's no ARR affinity cookie pinning a client to one instance. If you genuinely needed cross-request state, externalize it — typically into Azure Cache for Redis — so every instance saw the same data. Watch traffic spread across instances in Application Insights via cloud_RoleInstance . The catch: even in "stateless HTTP" mode, the 2025-11-25 protocol still started every connection with an initialize handshake and handed back an Mcp-Session-Id that the client had to send on every follow-up request. That session ID pinned a client to whichever instance issued it — so to scale cleanly you either kept affinity on (and gave up even load balancing) or did real work to share session state across instances. That's the part the 2026 spec deletes. What the 2026 spec actually changes The handshake and the session are gone Two proposals do the heavy lifting: SEP-2575 removes the initialize / initialized handshake. The protocol version, client info, and client capabilities that used to be exchanged once at connect time now ride along in _meta on every request. A new server/discover method lets a client ask for server capabilities when it actually wants them. SEP-2567 removes the Mcp-Session-Id header and the protocol-level session that came with it. With both gone, any MCP request can land on any instance. The sticky routing and shared session stores that horizontal deployments needed before just aren't required at the protocol layer anymore. Here's the before and after, straight from the spec. In 2025-11-25 , the client POST s an initialize call to /mcp first and gets a session ID back: {"jsonrpc":"2.0","id":1,"method":"initialize", "params":{"protocolVersion":"2025-11-25","capabilities":{}, "clientInfo":{"name":"my-app","version":"1.0"}}} …then every later call has to carry the Mcp-Session-Id header the server handed back, which pins it to that instance: {"jsonrpc":"2.0","id":2,"method":"tools/call", "params":{"name":"search","arguments":{"q":"otters"}}} In 2026-07-28 , the same tool call is one self-contained request that any instance can answer. The routing info rides in headers — MCP-Protocol-Version , Mcp-Method , and Mcp-Name — and the body carries everything else: {"jsonrpc":"2.0","id":1,"method":"tools/call", "params":{"name":"search","arguments":{"q":"otters"}, "_meta":{"io.modelcontextprotocol/clientInfo":{"name":"my-app","version":"1.0"}}}} No handshake, no session ID, nothing to pin. Traffic you can route and cache at the edge A few smaller changes make this traffic much friendlier to the infrastructure App Service already gives you: Routable headers (SEP-2243): Streamable HTTP now requires Mcp-Method and Mcp-Name headers, so load balancers, gateways, and rate-limiters can route or throttle on the operation without cracking open the request body. (Servers reject requests where the headers and body disagree.) Cacheable lists (SEP-2549): tools/list and resource-read results now carry ttlMs and cacheScope , modeled on HTTP Cache-Control . Clients know exactly how long a tool list is fresh and whether it's safe to share across users — no more holding an SSE stream open just to learn the list changed. Traceable calls (SEP-414): W3C Trace Context ( traceparent , tracestate , baggage ) propagation in _meta is now documented with fixed key names. A trace that starts in the host app can follow a tool call through the client SDK, your MCP server, and whatever it calls downstream — and show up as one span tree in any OpenTelemetry backend, including Application Insights. That last one pairs really nicely with the App Insights setup from the original sample, which already tags spans with cloud_RoleInstance . Why this is easier on App Service now App Service's built-in load balancer has always wanted to round-robin your requests. The thing stopping it from doing that cleanly with MCP was the protocol's own session affinity. Now that the protocol is stateless: No affinity tuning to reason about. You still want clientAffinityEnabled: false , but there's no longer a protocol session fighting it. Any instance serves any request, for real. Scale from 3 to 10 instances and the load balancer just spreads the work — no shared session store required for protocol state. Less Redis glue. In the old model, Redis was often there to share protocol session state. That reason is gone (see the next section for what Redis is still great for). "Stateless protocol" doesn't mean "stateless app" This is the part I want to be really clear about, because it's easy to over-read the headline. Removing the protocol session does not mean your application can't have state. It means the protocol stops carrying state for you. If your server needs to remember something across calls, you do what HTTP APIs have always done: mint an explicit handle and let the model pass it back as an argument. The spec calls this the explicit-handle pattern. A tool returns a basket_id (or browser_id , or whatever), and later calls include that ID as a normal parameter: // 1) create returns a handle {"name": "create_basket", "arguments": {}} // -> { "basket_id": "b_12345" } // 2) later calls pass it back as an ordinary argument {"name": "add_item", "arguments": {"basket_id": "b_12345", "sku": "ABC"}} The nice side effect: the model can see the handle, compose it across tools, and hand it off between steps — in ways that session state hidden in transport metadata never really allowed. So where does Redis fit now? Exactly where it always belonged — your application's data, not the protocol's plumbing: Backing store for those explicit handles (what's actually in basket b_12345 ). Caching expensive lookups or model responses across instances. App-level conversation memory or rate-limit counters. Stateless protocol, stateful application. You externalize state because your app needs it shared, not because the transport forces you to. Migrating an existing MCP server on App Service If you deployed the original sample (or something like it), here's the punch list to get to the 2026 model. The good news: the App Service / infra side barely changes — most of the work is in the protocol layer your SDK handles for you. App Service config — mostly already done: Keep clientAffinityEnabled: false . (Still the right call.) Keep scaling out to N instances. Nothing here changes. Keep Application Insights + OpenTelemetry — and lean into the new Trace Context key names for cleaner end-to-end traces. Protocol layer — the real work: Update to an SDK build that speaks 2026-07-28 . The handshake and session handling go away; your server reads protocol version and client info from _meta per request instead of from an initialize exchange. Emit ttlMs / cacheScope on tools/list and resource reads so clients (and your gateway) can cache them. Make sure your server honors / validates the Mcp-Method and Mcp-Name headers. If you were storing anything keyed off Mcp-Session-Id , move it to the explicit-handle pattern (handle in, handle out, state in Redis/Cosmos/etc.). Audit for the breaking bits: tasks/list is removed, Roots/Sampling/Logging are deprecated, and the "resource not found" error code moves from -32002 to the standard -32602 . I built a standalone companion sample for exactly this — the 2026-07-28 version of the original, with the handshake gone, everything read from _meta , server/discover implemented, and the explicit-handle pattern shown in a real tool. Link below. Try it yourself I built a companion sample for this post: a FastAPI MCP server that speaks 2026-07-28 natively — no handshake, no session — running on three App Service instances behind the built-in load balancer, with a staging slot, App Insights, a spec-compliant client, and a k6 load test: 👉 seligj95/app-service-mcp-stateless-scale-2026-python azd auth login azd up That provisions a Premium v3 plan with capacity: 3 , the web app with clientAffinityEnabled: false , a staging slot, and Log Analytics + Application Insights. No initialize , no Mcp-Session-Id anywhere — discovery is a single server/discover call, and every request carries its own protocol version and client info in _meta . The part I like best is the tally tool. It keeps a running total across calls using an explicit, signed handle instead of a session — so you can watch the total stay correct even as the load balancer routes each call to a different instance: +10 -> total=10 served_by=2103650c... +5 -> total=15 served_by=08fc7022... (different instance, total still right) +100 -> total=115 served_by=08fc7022... That's the stateless handle pattern from earlier, made concrete: state travels with the request, not the connection. Then watch the load spread in Application Insights: requests | where timestamp > ago(15m) | where name contains "/mcp" | summarize count() by cloud_RoleInstance Want the 2025-11-25 version for comparison? That's the original Part 1 sample: seligj95/app-service-mcp-stateless-scale-python. Diff the two main.py files and you can see the handshake and session handling simply disappear. The takeaway When I wrote the first post, "make MCP stateless so App Service can load-balance it" was a pattern you had to apply. With the 2026 spec, it's just how MCP works. The protocol deleted the exact friction we were routing around — which means hosting a horizontally scaled MCP server on App Service is now closer to "deploy a normal web app and scale it out" than ever. If you're already running MCP on App Service: you did the hard part early. The spec just made it official. Got an MCP server running on App Service? I'd love to hear how the migration goes — drop a comment.
Tutorial:A graceful process to develop and deploy Docker Containers to Azure with Visual Studio Code
Creating and deploying Docker containers to Azure resources manually can be a complicated and time-consuming process. This tutorial outlines a graceful process for developing and deploying a Linux Docker container on your Windows PC, making it easy to deploy to Azure resources. This tutorial emphasizes using the user interface to complete most of the steps, making the process more reliable and understandable. While there are a few steps that require the use of command lines, the majority of tasks can be completed using the UI. This focus on the UI is what makes the process graceful and user-friendly. In this tutorial, we will use a Python Flask application as an example, but the steps should be similar for other languages such as Node.js. Prerequisites: Before you begin, you'll need to have the following prerequisites set up: WSL 2 installation WSL provides a great way to develop your Linux application on a Windows machine, without worrying about compatibility issues when running in a Linux environment. We recommend installing WSL 2 as it has better support with Docker. To install WSL 2, open PowerShell or Windows Command Prompt in administrator mode, enter below command: wsl --install And then restart your machine. You'll also need to install the WSL extension in your Visual Studio Code. Python 3 installation Run “wsl” in your command prompt. Then run following commands to install python 3.10 (if you use Python 3.5 or a lower version, you may need to install venv by yourself): sudo apt-get update sudo apt-get upgrade sudo apt install python3.10 Docker for Linux You'll need to install Docker in your Linux environment. For Ubuntu, please refer to below official documentation: https://docs.docker.com/engine/install/ubuntu/ Docker for Windows To create an image for your application in WSL, you'll need Docker Desktop for Windows. Download the installer from below Docker website and run the downloaded file to install it. https://www.docker.com/products/docker-desktop/ Steps for Developing and Deployment 1. Connect Visual Studio Code to WSL To develop your project in Visual Studio Code in WSL, you need to click the bottom left blue button: Then select “Connect to WSL” or “Connect to WSL using Distro”: 2. Install some extensions for Visual Studio Code Below two extensions have to be installed after you connect Visual Studio Code to WSL. The Docker extension can help you create Dockerfile automatically and highlight the syntax of Dockerfile. Please search and install via Visual Studio Code Extension. To deploy your container to Azure in Visual Studio Code, you also need to have Azure Tools installed. 3. Create your project folder Click "Terminal" in menu, and click "New Terminal": Then you should see a terminal for your WSL. I use a quick simple Flask application here for example, so I run below command to clone its git project: git clone https://github.com/Azure-Samples/msdocs-python-flask-webapp-quickstart 4. Python Environment setup (optional) After you install Python 3 and create project folder. It is recommended to create your own project python environment. It makes your runtime and modules easy to be managed. To setup your Python Environment in your project, you need to run below commands in the terminal: cd msdocs-python-flask-webapp-quickstart python3 -m venv .venv Then after you open the folder, you will be able to see some folders are created in your project: Then if you open the app.py file, you can see it used the newly created python environment as your python environment: If you open a new terminal, you also find the prompt shows that you are now in new python environment as well: Then run below command to install the modules required in the requirement.txt: pip install -r requirements.txt 5. Generate a Dockerfile for your application To create a docker image, you need to have a Dockerfile for your application. You can use Docker extension to create the Dockerfile for you automatically. To do this, enter ctrl+shift+P and search "Dockerfile" in your Visual Studio Code. Then select “Docker: Add Docker Files to Workspace” You will be required to select your programming languages and framework(It also supports other language such as node.js, java, node). I select “Python Flask”. Firstly, you will be asked to select the entry point file. I select app.py for my project. Secondly, you will be asked the port your application listens on. I select 80. Finally, you will be asked if Docker Compose file is included. I select no as it is not multi-container. A Dockefile like below is generated: Note: If you do not have requirements.txt file in the project, the Docker extension will create one for you. However, it DOES NOT contain all the modules you installed for this project. Therefore, it is recommended to have the requirements.txt file before you create the Dockerfile. You can run below command in the terminal to create the requirements.txt file: pip freeze > requirements.txt After the file is generated, please add “gunicorn” in the requirements.txt if there is no "gunicorn" as the Dockerfile use it to launch your application for Flask application. Please review the Dockerfile it generated and see if there is anything need to modify. You will also find there is a .dockerignore file is generated too. It contains the file and the folder to be excluded from the image. Please also check it too see if it meets your requirement. 6. Build the Docker Image You can use the Docker command line to build image. However, you can also right-click anywhere in the Dockefile and select build image to build the image: Please make sure that you have Docker Desktop running in your Windows. Then you should be able to see the docker image with the name of the project and tag as "latest" in the Docker extension. 7. Push the Image to Azure Container Registry Click "Run" for the Docker image you created and check if it works as you expected. Then, you can push it to the Azure Container Registry (ACR). Click "Push" and select "Azure". You may need to create a new registry if there isn't one. Answer the questions that Visual Studio Code asks you, such as subscription and ACR name, and then push the image to the ACR. 8. Deploy the image to Azure Resources Follow the instructions in the following documents to deploy the image to the corresponding Azure resource: Azure App Service or Azure Container App: Deploy a containerized app to Azure (visualstudio.com) Opens in new window or tab Container Instance: Deploy container image from Azure Container Registry using a service principal - Azure Container Instances | Microsoft Learn Opens in new window or tabIntroducing Azure Container Apps Sandboxes: Secure Infrastructure for Agentic Workloads
Today we are announcing the public preview of Azure Container Apps Sandboxes - a new first-class resource type that gives you fast, secure, ephemeral compute environments with built-in suspend and resume. This is the underlying infrastructure on which products like Cloud sandboxes in GitHub Copilot, Foundry Hosted Agents, and Azure Container Apps Express are built, you now have the opportunity to build your solutions leveraging this infrastructure. Azure Container Apps Sandboxes unlocks two massive opportunities. For platform developers and ISVs, sandboxes give you the same isolated compute fabric that powers many Microsoft products. You get the building blocks to create your own multi-tenant platform on proven, enterprise-scale infrastructure. For AI agents, sandboxes become a self-configurable tool that lets agents extend their own capabilities on the fly. An agent can spin up a fresh sandbox in milliseconds and use it to execute untrusted code, compile source, test HTTP requests against a live app, launch a browser session, or tackle whatever needs a quick and scalable infrastructure. On one side it empowers humans to build platforms, on the other it empowers agents to build their own capabilities. Both get enterprise-grade isolation, instant startup, and snapshot-based persistence out of the box. We'll walk through the resource model, sandbox lifecycle, the features that set Sandboxes apart - like snapshots, lifecycle policies, network egress controls, volumes, and managed identities - and show you how to get started with the portal and CLI. What Are Container Apps Sandboxes? Container Apps Sandboxes are secure, isolated compute environments that start in sub-second time, scale to thousands, and cost nothing when idle. Each sandbox runs in its own hardware-isolated microVM boundary - fully separated from the host, the platform, and every other sandbox. You bring your own Open Container Initiative (OCI) image, and Sandboxes handle the rest: provisioning from prewarmed pools, strong multi-tenant isolation, and snapshot-based suspend/resume that preserves full memory and disk state across sessions. There are many ways Sandboxes can help you build your next project - here are a few: Your own build & test systems - wire a Sandbox into your CI/CD flow to run builds while your laptop stays cool. Agents that can run anything safely - an agent spawns a sandbox, executes work inside it, and returns the output with no agent host privileges required. Agent swarms - decompose a research question, spawn N sandbox workers in parallel (each pinned to its own image and egress policy), and synthesize the result. Early access customers are already unlocking significant benefits by leveraging Azure Container Apps Sandboxes. "With Azure Container Apps sandboxes, SitecoreAI can safely enable agents to take real action. The combination of multi-tenant isolation, rapid scale-out, and full automation allows Sitecore to run long-lived, autonomous agents that securely execute code, manage workflows, and interact with enterprise systems within secure, governed environments. With this foundation, we can build agents that do real work: assembling content, personalizing experiences, and optimizing campaigns in production. Agents that operate continuously, learn from results, and improve over time, so our customers get better outcomes without giving up control." - Mo Cherif, VP of AI and Innovation, Sitecore "We got early access to Azure Container Apps Sandboxes, and got the first prototype integrated with Atlas AI in hours, and it's already shaping a new Atlas AI capability that we plan to launch in preview in Q3. It gives every Atlas AI agent a safe, sandboxed workspace (file system, terminal, code execution) on a customer's live data in Cognite Data Fusion. The value: Industrial process, reliability, and production engineers spend days and weeks on questions like "which wells are underperforming and why?" These questions are tractable but expensive, so they are asked rarely and decisions are made on gut feel. With this, an agent pulls the data, runs the analysis, cross-references maintenance and inspection records, and returns a cited draft in minutes. Sandboxes make it practical: Aligned feature set, per-customer isolation, pause/resume across multi-day investigations, scale-to-zero economics." - Kelvin Sundli, Product manager, Atlas AI, Cognite Resource Model: Sandbox Groups and Sandboxes The top-level ARM resource is Microsoft.App/SandboxGroups. A Sandbox Group is the management boundary for a collection of sandboxes that share configuration - think of it like a Container Apps Environment, but purpose-built for sandboxes. When you create a Sandbox Group, you specify: Subscription, Resource Group, and Region Sandbox defaults (optional): default CPU, memory, disk, max sandbox count, and default idle timeout Networking: optionally deploy into a custom VNet with a dedicated subnet for private networking Identity: System or user assigned Entra identity. Individual sandboxes are created within a Sandbox Group. Each sandbox has its own source (disk image or snapshot), resource tier, lifecycle policy, network egress policy, environment variables, ports, volumes, and connections. Sandbox Lifecycle Sandboxes have a well-defined lifecycle with the following states: State Description Creating Provisioning the sandbox from a disk image or snapshot Running Actively executing - backed by a live microVM Idle System-suspended after inactivity; can auto-resume on the next request Suspended Full state (memory + disk) preserved as a snapshot; no compute costs Resuming Restoring from a suspended or idle state - sub-second for most workloads Stopped User-initiated stop; can be resumed Stopping Graceful shutdown in progress Deleting Teardown in progress The key insight here is the distinction between Idle and Suspended. When a sandbox goes idle (e.g., no traffic for a configured timeout), the system can automatically suspend it and capture a snapshot. When a new request arrives, the sandbox resumes transparently. This gives you scale-to-zero economics with stateful compute - something that wasn't possible before without significant custom engineering. Disk Images: Bring Your Own Container Sandboxes boot from Disk Images - Open Container Initiative (OCI) images converted into an optimized root filesystem format. You point to any OCI image (public or private registry), and the platform builds a bootable disk image from it. You can start with public, pre-built images maintained by the platform (for example, Ubuntu base images), or bring your own private images. For private registries, you can authenticate with username/token or use a user-assigned managed identity for Azure Container Registry (ACR) – integrated with Azure as you expect. Snapshots: Full-State Persistence Snapshots capture the complete state of a running sandbox - memory, disk, and all running processes. When you resume a sandbox from a snapshot, every process, open file handle, and in-memory data structure is restored exactly as it was. A snapshot captures the full state of a running sandbox: memory pages, disk, processes. Two ways to make one - automatically on suspend, or manually on demand. Three things they're great for: Checkpointing mid-task so a long-running agent can resume exactly where it left off Cloning an environment that's already warm - dependencies installed, caches populated, services running Shipping a "ready-to-go" state that resumes in sub-second instead of cold-booting Snapshots are free during the preview, after which they will be stored as Azure Blob Storage at standard rates. Each snapshot records the source sandbox, resource allocation (CPU, memory, disk), and container metadata - so what you get back is exactly what you snapshotted. Resource Tiers Every sandbox is assigned to a resource tier that determines its CPU, memory, and disk allocation: Tier CPU Memory Disk XS 0.25 vCPU 0.5 GB 5 GB S 0.5 vCPU 1 GB 10 GB M (default) 1vCPU 2 GB 20 GB L 2 vCPU 4 GB 40 GB XL 4 vCPU 8 GB 80 GB When creating a sandbox from a snapshot, the resource tier is inherited from the snapshot and cannot be changed - this ensures the restored environment has the exact resources it was running with when the snapshot was taken. Lifecycle Policies: Auto-Suspend and Auto-Delete Every sandbox can be configured with lifecycle policies that automate state transitions and cleanup: Auto-Suspend Idle timeout: How long a sandbox can sit idle before being suspended (configurable: 1m, 2m, 5m, 10m, 30m, 60m) Suspend mode: Disk + Memory (default): Full snapshot including memory state - resume picks up exactly where you left off, with all processes and in-memory data intact. Disk: Only the disk is preserved; the VM restarts fresh on resume. Useful when you only need file persistence, not process continuity. Auto-Delete Automatically delete sandboxes after a configurable number of days of inactivity Prevents accumulation of abandoned sandboxes that consume snapshot storage These lifecycle policies are what make Sandboxes economically viable at scale. A platform serving thousands of tenants can configure aggressive idle timeouts (say, 60 seconds) with Memory suspend mode, and each tenant's sandbox disappears from the billing meter almost immediately - but resumes in sub-second time the moment they return. Network Egress Policy For scenarios involving untrusted code - AI agents executing LLM-generated scripts, multi-tenant SaaS with user-submitted workloads - controlling outbound network access is critical. Sandboxes provide a per-sandbox Network Egress Policy: Default action: Allow or Deny all outbound traffic Host rules: Domain-pattern rules (e.g., *.github.com → Allow) to permit specific destinations Custom CIDR rules: Network-level rules for IP ranges (e.g., 10.0.0.0/8 → Deny) Skip egress proxy: Option to bypass the egress proxy entirely when custom VNet routing handles policy enforcement This means you can run a sandbox in a deny-by-default posture and allowlist only the specific endpoints it needs (your API server, a package registry, etc.) - without setting up NSGs or firewall appliances. Managed Volumes: Persistent and Shared Storage Sandboxes support two types of mountable volumes, both managed by Microsoft: Volume Type Backed By Best For Managed Azure Blob Azure Blob Storage Shared data across sandboxes, file uploads/downloads, persistent artifacts Managed Data Disk Azure Disk Storage High-performance storage for databases, build caches, large working sets - only available to one sandbox at a time Blob volumes come with a built-in file explorer in the portal - you can browse, upload, download, create folders, and drag-and-drop files directly. Data Disk volumes provide dedicated block storage with configurable sizes. Secrets and Identity Secrets Sandbox Groups support key-value secrets scoped to the group. Secrets can be created, edited, and referenced by sandboxes within the group. These secrets can be used in egress policies to modify requests with transform or header-injection rules, without exposing the secrets to code running inside the sandbox. Managed Identity Sandbox Groups support both system-assigned and user-assigned managed identities, with full RBAC role assignment management. This means your sandboxes can authenticate to Azure services (Key Vault, Storage, Cosmos DB, etc.) without managing credentials - the same identity model you use everywhere else in Azure. MCP Connectors and Triggers ACA Sandboxes now supports managed connectors through the Model Context Protocol (MCP), giving sandboxes access to external APIs - including Microsoft 365, Salesforce, ServiceNow, GitHub, and 1,400+ other systems - without managing credentials directly. Attach a Connector Gateway to your sandbox group, and every sandbox in the group can call external APIs through a standardized MCP interface at runtime. Pair connectors with triggers to build event-driven automation: route an Outlook email to a sandbox that triages it with an AI agent, or react to a SharePoint file upload by extracting and processing the document all without writing glue code. Triggers can fire a shell command inside a sandbox or invoke an HTTP endpoint the sandbox exposes, so your automation shapes fit naturally around your workload. The integration is built on the new Connector Namespace service (az connector-namespace), the same runtime behind Logic Apps and Power Platform connectors, now available as a programmable layer for sandboxes. See the end-to-end samples for runnable azd up-deployable examples covering email triage and document automation scenarios. The Portal Experience Azure Container Apps Sandboxes are only available in the new Azure Container Apps portal that provides a rich, IDE-like experience for working with sandboxes. Creating a Sandbox The portal offers multiple creation paths: Standard Sandbox - full configuration control over source, resources, lifecycle, networking, and volumes GitHub Copilot Sandbox - preset, Copilot CLI ready to go, GitHub credentials can be wired through the Access Token before the sandbox is created Claude Sandbox - Claude CLI pre-installed, ready for agentic coding inside the sandbox Using Coding Agents (Copilot CLI / Claude Code) If you live inside Copilot CLI or Claude Code, you don't need to learn a new CLI. Install the azure-sandbox skill once and your agent picks up the right skills: # GitHub Copilot CLI # Add as a plugin marketplace /plugin marketplace add microsoft/azure-container-apps # Install all skills /plugin install sandboxes@Azure-Container-Apps # Claude Code claude plugin add microsoft/azure-container-apps The skill runs prerequisite checks silently (az --version, az account show, node --version, aca --version), prompts only if something's missing, and maps natural-language asks to the right aca commands. Bundled runbooks cover Copilot CLI BYOK (bring your own Azure OpenAI key), the deploy-a-web-app walkthrough, and shell setup. Sandbox Detail Page Once your sandbox is running, the detail page gives you immediate access to the sandbox terminal and additional details, such as - Network Audit - real-time egress traffic log showing allowed and denied requests Monitor - live CPU, memory, disk, and network utilization charts Connectors - attached connections with an "Add" action Volumes - mounted volumes with an "Add" action Log Stream - streaming container logs Processes - running process list inside the sandbox Files - file explorer to browse the sandbox filesystem The toolbar actions let you manage the state of the sandbox - Resume or Stop. In the Ellipsis menu (⁝) you can find additional settings to manage network Egress Policy and ingress (Add port), take a Snapshot of the sandbox, Commit (save disk state as a new disk image), set Lifecycle Policy or permanently Delete the sandbox. Finally, you can see additional Details in a side panel. Getting Started with the CLI and Python SDK All sandbox and sandbox-group operations go through the aca CLI. There are no az containerapp sandbox commands, - az is only used for az login, az account show, and resource-group management. Install (CLI) # Mac, Linux curl -fsSL https://aka.ms/aca-cli-install | sh # Windows irm https://aka.ms/aca-cli-install-ps | iex Run aca --help to get started. Install (Python SDK) pip install azure-containerapps-sandbox For more details, quick start and examples on ACA CLI and Python SDK, please go to https://sandboxes.azure.com Evolution from Dynamic Sessions If you've used Azure Container Apps Dynamic Sessions, Sandboxes are the next evolution of that capability. Everything Sessions can do, Sandboxes can do - and significantly more: Capability Dynamic Sessions Sandboxes Sub-second startup ✓ ✓ Strong isolation ✓ ✓ Custom container images ✓ ✓ Custom VNet integration ✓ (Partial) ✓ Suspend/resume with Memory and Disk snapshots - ✓ Lifecycle policies (auto-suspend, auto-delete) - ✓ Network egress policy (per-sandbox) - ✓ Persistent managed volumes (Blob, Data Disk) - ✓ Managed identity (system + user-assigned) - ✓ Secrets management - ✓ Configurable resource tiers - ✓ Direct access to sandbox in Portal experience - ✓ We will continue to support Dynamic Sessions, but all new investment goes into Sandboxes. If you're building new workloads on isolated ephemeral compute, start with Sandboxes. How It All Fits Together ACA Sandboxes is a platform primitive. It's the foundation on which multiple Microsoft products are already built - including ACA Express, Cloud sandboxes in GitHub Copilot, and Foundry Hosted Agents. When you build on Sandboxes, you're building on the same infrastructure that powers Microsoft's own portfolio. This is the evolution of what we shared with Project Legion in 2024. Legion described the internal infrastructure; Sandboxes exposes it as a customer-facing primitive that you can use directly. What's Next • Deeper Azure integrations - first-class connectivity with Azure networking, identity, storage, and AI services • Enhanced SDK and CLI - richer programmatic experiences for managing sandboxes at scale • More Microsoft services built on Sandboxes - this is just the beginning Get Started Today • Portal: https://sandboxes.azure.com/ • Documentation: Azure Container Apps Sandboxes • Pricing: Azure Container Apps Pricing (per-second vCPU/memory billing, scale-to-zero, snapshots at Blob Storage rates) We'd love to hear your feedback. You can ask questions, or file issues on the Azure Container Apps GitHub (prefix with [Sandbox] for Sandboxes-specific issues).Enhancing Data Security and Digital Trust in the Cloud using Azure Services.
Enhancing Data Security and Digital Trust in the Cloud by Implementing Client-Side Encryption (CSE) using Azure Apps, Azure Storage and Azure Key Vault. Think of Client-Side Encryption (CSE) as a strategy that has proven to be most effective in augmenting data security and modern precursor to traditional approaches. CSE can provide superior protection for your data, particularly if an authentication and authorization account is compromised.What's new in Azure App Service at #MSBuild 2026
At Microsoft Build 2026, Azure App Service introduced a powerful set of updates designed to help organizations accelerate their journey into AI, without increasing complexity or cost. These innovations focus on one clear business outcome: enabling teams to build, deploy, and scale AI-powered applications and agents faster, more securely, and with greater operational efficiency. A key highlight is the new Easy AI experience, which allows existing web apps to become AI-ready with no rearchitecting required. With capabilities like built-in Model Context Protocol (MCP), developers can instantly expose app functionality as agent-ready endpoints, enabling AI agents to interact with business logic securely and seamlessly. This dramatically reduces development time, allowing teams to move from idea to intelligent application in a fraction of the usual effort. Security and compliance are also strengthened with the general availability of Isolated v4 for Azure App Service Environments, delivering improved performance for customers that need single-tenant isolation and strong data residency guarantees. For enterprises operating in regulated industries, this ensures AI applications meet strict governance requirements without sacrificing scalability or speed. For modernization scenarios, Managed Instance on Azure App Service simplifies the migration of legacy applications, including those with OS-level dependencies. Faster restarts, enhanced diagnostics, and AI-assisted migration workflows help organizations modernize existing systems cost-effectively—avoiding expensive rewrites while unlocking AI capabilities. Recent updates include an AI-assisted approach to migrating legacy IIS applications using a multi-agent workflow powered by MCP. Managed Instance is supported on both Premium v4 and Isolated v4, laying the foundation for a modern compute infrastructure across the board. Operational efficiency is further enhanced through platform and CLI improvements designed for the “agent era.” From structured deployment diagnostics to optimized Python pipelines delivering faster deployments, these updates reduce friction and infrastructure overhead, lowering total cost of ownership. Together, these innovations position Azure App Service as a future-ready platform where businesses can rapidly build intelligent, agent-driven applications securely, efficiently, and at scale. 👉 Learn more in the full announcement: Deep dive into Azure App Service Build 2026 updatesBuilding Agentic Systems on Azure: Microsoft Foundry Agents SDK vs Microsoft Agent Framework
In my recent experience as a Senior Consultant at Microsoft, I’ve been actively involved in designing and delivering AI-driven solutions, with a strong focus on building intelligent agents using modern frameworks. Along the way, I've built agents using both Microsoft Foundry Agents SDK (hereafter "Agents SDK") and Microsoft Agent Framework (MAF) Both approaches are powerful and capable. However, once you move beyond simple proofs of concept, the developer experience and architectural patterns start to differ significantly. This article provides a practical comparison based on real implementation experience and aims to help developers choose the right approach. Approach 1: Agents SDK Agents SDK provides a straightforward way to create agents with integrated tools and models. Example: Creating an Agent from azure.ai.projects import AIProjectClient from azure.ai.agents.models import AzureAISearchTool, AzureAISearchQueryType from azure.identity import DefaultAzureCredential client = AIProjectClient(credential=DefaultAzureCredential(), endpoint=os.getenv("AZURE_AI_PROJECT_ENDPOINT")) # Configure tools ai_search = AzureAISearchTool( index_connection_id=conn_id, index_name="my-index", query_type=AzureAISearchQueryType.SEMANTIC, ) # Create agent (persisted in Foundry portal) agent = client.agents.create_agent( model=os.getenv("AZURE_AI_AGENT_DEPLOYMENT_NAME"), name="MyAgent", instructions="You are a helpful assistant.", tool_resources=ai_search.resources, tools=ai_search.definitions, ) # Run conversation thread = client.agents.threads.create() client.agents.messages.create(thread_id=thread.id, role="user", content="Hello") run = client.agents.runs.create(thread_id=thread.id, agent_id=agent.id) What this approach provides Native integration with Azure AI services (OpenAI, AI Search, MCP) Managed execution environment Simple and quick agent setup Conceptually, this approach can be summarized as: Model + Tools + Execution Strengths ✅ Rapid development and onboarding ✅ Strong integration within the Azure ecosystem ✅ Well-suited for single-agent or tool-driven use cases ✅ Minimal infrastructure overhead Challenges observed in practice As the complexity of scenarios increases, certain limitations become more visible: Multi-agent workflows require custom orchestration logic Agent handoffs must be implemented manually Context sharing across agents requires additional design effort While this approach offers flexibility, it shifts orchestration complexity to the developer. Approach 2: Microsoft Agent Framework (MAF) Microsoft Agent Framework introduces a higher-level abstraction, focused on agent orchestration and system design. Creating an Agent from agent_framework import Agent, WorkflowBuilder, Message from agent_framework.foundry import FoundryChatClient from azure.identity import DefaultAzureCredential client = FoundryChatClient( project_endpoint=os.getenv("FOUNDRY_PROJECT_ENDPOINT"), model=os.getenv("FOUNDRY_MODEL_DEPLOYMENT_NAME"), credential=DefaultAzureCredential(), ) # Create agents (in-process only, not persisted in portal) researcher = Agent(client, name="ResearcherAgent", instructions="Research topics thoroughly.") writer = Agent(client, name="WriterAgent", instructions="Write concise summaries.") # Build and run multi-agent workflow workflow = WorkflowBuilder(start_executor=researcher).add_edge(researcher, writer).build() async for event in workflow.run(Message("user", "Summarize migration best practices"), stream=True): print(event.content) What this approach provides Built-in orchestration capabilities Native support for multi-agent workflows Structured agent lifecycle management Context and memory handling Conceptually, this can be viewed as: Agents + Orchestration + System Design Observations from implementation When implementing similar use cases using MAF: Agent responsibilities became clearly defined Routing and delegation patterns were significantly simplified Overall system architecture became easier to maintain and scale This approach encourages thinking in terms of agent ecosystems rather than isolated agents. Architecture Comparison Agents SDK Microsoft Agent Framework (MAF) Choosing the Right Approach Use Agents SDK when: You need rapid development for a single-agent use case The workflow is relatively straightforward You prefer flexibility and lower-level control Use Microsoft Agent Framework when: You are designing multi-agent systems Your solution requires routing, delegation, or handoffs Long-term scalability and maintainability are essential Pros and Cons Summary Agents SDK Pros Easy to get started Strong Azure integration Flexible design Cons Manual orchestration required Limited native multi-agent support Complexity increases as scenarios grow Microsoft Agent Framework (MAF) Pros Built-in orchestration Native multi-agent support Scalable and structured architecture Cons Learning curve for new developers More opinionated framework design Reduced low-level control compared to SDK-based approach References and Repositories 🔗 Microsoft Agent Framework (MAF) Microsoft Agent Framework – GitHub Repository Microsoft Agent Framework Samples – Tutorials & Examples Workflow Samples (Multi-agent patterns) FoundryChatClient sample (Python) Agent Framework demos - GitHub Source 📘 Documentation Microsoft Agent Framework Overview (Microsoft Learn) Agent Framework + Microsoft Foundry provider docs 🔗 Azure AI Projects / Agents SDK Azure AI Projects SDK – Python (GitHub Source) Azure AI Projects Agents (.NET SDK repo) 📘 Documentation Azure AI Projects SDK (Python) – Microsoft Learn Azure AI Agents SDK – Microsoft Learn Conclusion Azure AI Projects and Microsoft Agent Framework both play important roles in the modern agent development landscape. Agents SDK enables quick and flexible agent development Microsoft Agent Framework enables structured, scalable agent systems In practice, the choice depends on whether you are building a single agent feature or a multi-agent system. Final Thought Agents SDK helps you get started quickly. Microsoft Agent Framework helps you scale with confidence In a follow-up blog, I’ll dive into how the M365 Agents SDK compares with Microsoft Agent Framework, especially in the context of enterprise productivity and Copilot experiences.Foundry Toolkit for VS Code at //build: Hosted Agents End-to-End, a Smarter Toolbox, and More
We’re excited to share what’s new for Foundry Toolkit for Visual Studio Code at //build 2026. Since going generally available, the toolkit has kept moving fast, and this release is a big one. The headline: a complete, end-to-end Hosted Agent experience, scaffold, run, deploy, and observe without ever leaving VS Code. On top of that, we’ve expanded the Toolbox with native enterprise integrations and shipped a wave of LangGraph samples so every developer has a clear path from idea to production. From your first prompt to a production-grade, observable agent, Foundry Toolkit meets you where you are. Hosted Agents, End to End Building an agent is the easy part; getting it from a first draft to a production-grade, observable service is what matters. This release makes the full Hosted Agent lifecycle available in VS Code, and it follows the way you actually work — scaffold, run, deploy, observe. Scaffold — start from a rich set of samples Hosted Agent creation now opens with a refreshed scaffolding experience and a rich sample selection, so you start from a working, framework-appropriate template instead of a blank file. Creation is smarter, too: we auto-select your subscription when there’s only one, gate tabs more clearly, and tightened spacing for a cleaner setup flow. Run (F5) — inspect as you build Press F5 and your agent runs locally with the Agent Inspector, now aligned with the rest of the extension and featuring Copilot SDK visualization so you can see what the Inspector visualizes as the agent executes. It’s the fastest loop from change to verification before anything leaves your machine. Deploy — a new UX and new ways to ship Different teams ship differently, so deployment got a refreshed UX and two new options for Hosted Agents: ZIP Code Deploy: Package your agent source as a ZIP and deploy it directly to Microsoft Foundry Agent Service. Bring-Your-Own-Image (BYOI): Already have a pre-built container in your own Azure Container Registry? Deploy straight from it. Observe — know it works in production Once deployed, the full observability story is now available: Hosted Agent Tracing: Inspect end-to-end traces of Hosted Agent invocations directly from VS Code — tool calls, delegation chains, and timing for real debugging instead of guesswork. Continuous Evaluation Settings: A new page to configure ongoing evaluation for deployed Hosted Agents, so quality is measured continuously — not just at ship time. Evaluations Node: One-click access to evaluation runs and results right from the Foundry project tree. A Smarter, More Connected Toolbox What it is, and why it matters A Toolbox is how your agent gets its capabilities — the curated set of tools, knowledge sources, and integrations it can call at runtime. Instead of hand-wiring each connection, you assemble a Toolbox once and your agent consumes it consistently across local runs and production. The result: agents that can act on real enterprise data and systems, with the connections managed in one place. From what to how: create, connect, consume Create: Start a new Toolbox from the Foundry Toolkit sidebar “Tools Catalog” and pick the capabilities your agent needs. Connect: Configure and wire in enterprise systems through native, first-class connections once, and use it for all your agents. Consume: Reference the Toolbox from your Hosted Agent so its tools are available the moment the agent runs, locally (F5) and once deployed. New this release Building on that flow, the Toolbox is now richer and more enterprise-ready: WorkIQ as a Built-in Tool: A first-class WorkIQ experience powered by A2A connections — no MCP fallback required. End-to-end toolbox creation with WorkIQ works out of the box. Fabric IQ (OneLake Catalog) Integration: Connect your agents to Microsoft Fabric OneLake catalogs directly from the Toolbox. Toolbox Guardrails: Apply content-safety guardrails to your Toolbox for safer agent execution. Faster discovery: A new Toolbox Search Toggle and Agent Tool Multi-Select let you find and wire in multiple tools in a single action. LangGraph Reaches Parity LangGraph developers, this one is for you. We’ve added five new Hosted Agent samples that bring LangGraph to full parity with the Agent Framework Responses learning path — so you get an equivalent, end-to-end walkthrough no matter which framework you prefer: MCP — tool loading from a remote MCP server (defaults to GitHub Copilot MCP) via MultiServerMCPClient. Workflows — a custom StateGraph chaining three specialized LLM nodes: slogan writer, legal reviewer, and formatter. Files — local filesystem tools plus the Foundry-Toolbox code_interpreter working over session-uploaded files. Human-in-the-Loop — a StateGraph that drafts a proposal and pauses for approval via langgraph.types.interrupt. Observability — GenAI OpenTelemetry tracing with enable_auto_tracing(); spans, metrics, and logs flow to Application Insights. We’ve also refreshed the existing bring-your-own LangGraph samples against the new hosting layer (chat with local tools, Foundry-managed Toolbox loading, and SSE-streamed multi-turn sessions backed by a MemorySaver checkpointer), so every sample reflects how Hosted Agents work today. Polish Across the Board A release is more than headline features. This one also includes a redesigned Prompt Builder “Improve an Instruction” dialog for faster iteration, fixes for MCP toolbox tool icons, clearer ZIP-deploy error surfacing, and assorted Agent Builder and Playground regression fixes — the whole experience feels tighter end to end. Get Started Today Install: Foundry Toolkit on the VS Code Marketplace Quick Start: Follow our getting-started tutorial to build your first Hosted Agent Deep Dive: Explore the documentation, samples, and LangGraph parity walkthroughs Join the Community Share your projects, file issues, or suggest features on our GitHub repository. We can’t wait to see what you build. Welcome to the next chapter of AI development!Azure Functions MCP Extension: What's New at Build 2026
The Azure Functions MCP extension has had a breakout year! Since its initial preview, the extension has grown from a single trigger type into a full-featured platform for building remote MCP servers: with tool, resource, and prompt triggers across multiple languages, MCP Apps for interactive UIs, built-in MCP authentication, and feature enhancements. Here's what's new and what it means for developers building MCP servers on Azure Functions. The full MCP primitive set: Tools, resources, and prompts When the MCP extension first shipped, it supported tool triggers. Declare a function as an MCP tool, and any MCP client can discover and call it. That was the starting point. Since then, we've shipped the remaining MCP primitives: Resource triggers: expose a function as an MCP resource. Prompt triggers: expose a function as an MCP prompt, letting clients request structured prompt templates from your server. Like tool triggers, resource and prompt triggers are supported in multiple languages including .NET, Java, Python, TypeScript, and JavaScript. MCP Apps: interactive UI from your MCP server MCP Apps let your tools return interactive user interfaces instead of plain text. Combine tool triggers with resource triggers, and your MCP server can serve rich, rendered experiences to MCP-aware clients. The Azure Functions MCP extension supports MCP Apps natively, meaning the same function app that exposes tools and resources can also serve UI components. The launch blog post on the Azure Apps Blog walked through the pattern in detail. For .NET developers, the new fluent builder API (available in the latest NuGet release) makes it easier to compose MCP Apps by chaining tool and resource definitions in a declarative style. MCP authentication The extension supports built-in MCP authentication, implementing the requirements of the MCP auth spec. All samples in the aka.ms/remote-mcp repo enable built-in MCP auth by default with Microsoft Entra ID as the identity provider. Samples have also been updated to demonstrate how to exchange tokens in the On-Behalf-Of (OBO) flow, so your MCP tools can access downstream APIs using the invoking user's identity. Auth configuration in the Azure portal: Preview at Build is a one-click experience in the Azure portal for configuring built-in MCP auth. No more manual app registration creating, configuration and wiring to the server. Just open your server app on the portal and click to enable MCP auth. Try it out! Feature enhancements Beyond the headline primitives and auth, the extension has shipped a steady stream of capabilities the past few months. The following are the notable additions. Structured content Structured content lets you return machine-readable JSON metadata alongside your tool's response via the `structuredContent` field. Clients that support it can programmatically consume the data (e.g. parse fields, render tables, drive downstream logic) rather than just displaying text. Clients that don't support it still get the regular content blocks as a fallback. Rich content types Tools aren't limited to returning plain text. The extension supports the full set of MCP content block types, e.g. `TextContent`, `ImageContent`, `AudioContent`, `ResourceLink`, and `EmbeddedResource`, so your tools can return images, audio clips, references to resources, and inline file content alongside text. Input and output schemas `WithInputSchema` and `WithOutputSchema` give you explicit control over the JSON schemas advertised for your tools. This is especially useful when the auto-generated schema from function parameters doesn't capture the full contract. For example, when your tool accepts a complex nested object or returns a specific shape that clients depend on. Input and output schemas are currently supported in .NET, with support for other languages coming soon. builder.ConfigureMcpTool("SearchDocs") .WithOutputSchema(""" { "type": "object", "properties": { "results": { "type": "array", "items": { "type": "string" } }, "query": { "type": "string" } }, "required": ["results", "query"] } """); Fluent configuration APIs in .NET A set of fluent builder APIs that let you configure MCP primitives declaratively in `Program.cs`: ConfigureMcpTool: add properties, metadata, input/output schemas, or promote a tool to an MCP App ConfigureMcpResource: attach metadata to resources ConfigureMcpPrompt: define prompt arguments and metadata builder.ConfigureMcpTool("sayhello") .WithProperty("name", McpToolPropertyType.String, "Name of the user", required: true) .WithMetadata("ui", new { resourceUri = "ui://index.html" }); What's next Usage of the MCP extension has grown steadily since its preview launch. Tool execution volume has increased 15x over the past several months as more customers move from experimentation to production. As adoption grows, so do the expectations. Developers building production MCP servers are hitting real friction around auth complexity, client configuration, and observability. We're continuing to invest in the extension to address these gaps and help customers be more successful building and hosting MCP servers on Azure Functions. Here's where we're focusing next. Continued auth simplification Auth remains the biggest barrier to getting an MCP server into production. We'll work on: Smoother client setup: making it easier to connect any MCP client to an authenticated Azure Functions MCP server, not just VS Code. Simplified OBO flow: streamlining the experience of On-Behalf-Of authentication so developers can delegate user identity to downstream services with less configuration. Our goal: the secure path should be the easy path. Deeper integration with Microsoft Foundry We'll build tighter integration between Azure Functions MCP servers and Microsoft Foundry. This includes surfacing MCP servers in Foundry Toolbox, a new feature introduced to help Foundry agents discover and consume tools from a single endpoint. Developers will be able to publish an MCP server from Functions and have it available to Foundry agents through Toolbox without manual endpoint configuration. Continued feature enhancement We prioritize based on feedback from the community raised in our GitHub repo. For example, support for streaming output and pagination are top items in our backlog today based on user demand. We also track the MCP spec's evolution closely and will continue shipping support for strategic features as they land. Examples of proposals we're following: MCP Tasks: the Tasks extension (SEP-2663) defines a standard pattern for async, long-running tool calls with durable task handles. This replaces hand-rolled polling patterns and aligns well with Functions' execute-and-return model. Stateless MCP: SEP-2575 proposes removing the mandatory initialization handshake, which is a natural fit for serverless platforms like Azure Functions where fresh instances can handle any request. Have something you'd like us to prioritize? Let us know by filing a request on GitHub. Get started Samples: Samples showcasing most up-to-date features: aka.ms/remote-mcp Documentation: Model Context Protocol for Azure Functions MCP Extension GitHub repo: Azure Functions MCP Extension
