From Prompt to Production: Open in VS Code for Terraform in Azure Copilot
We’re excited to introduce a new step in the Terraform on Azure experience: Open in VS Code, now available directly from Azure Copilot in the Azure Portal. This capability helps you move seamlessly from AI‑generated Terraform code to real Azure deployments - within a connected, guided workflow designed for enterprise scenarios. Why This Matters Infrastructure as Code with Terraform is powerful, but moving from generated configuration to a deployed environment typically involves multiple tools and handoffs. Teams need to understand Terraform state, work with remote backends, and integrate their code into version‑controlled CI/CD pipelines - often backed by Terraform Cloud or Azure‑native backends in enterprise environments. Open in VS Code brings these steps together. It bridges the gap between AI‑assisted authoring in the Azure Portal and the real‑world workflows required to validate, manage state, and deploy infrastructure with confidence. Continue Your Workflow in VS Code With Azure Copilot, you can describe your infrastructure in natural language and generate Terraform configurations in seconds. For example: “Create an Azure Container App using Terraform with a managed environment, Log Analytics enabled, and a system‑assigned managed identity to securely pull images from Azure Container Registry.” Copilot generates the Terraform configuration for you. From there, you can select Open full view to enter a full‑screen Terraform editor, and then choose Open in VS Code to launch the configuration in an Azure‑hosted VS Code environment. There’s no need to download files or set up a local development environment. VS Code for the web opens with Azure authentication already configured, along with commonly used extensions, so you can immediately focus on refining, validating, and preparing your infrastructure for deployment. Built‑in Guidance for Real Deployments Beyond editing, the VS Code experience includes built‑in, step‑by‑step guidance to help you deploy your Terraform configuration into your own Azure environment - whether you’re experimenting or preparing for production. Because Terraform relies on state management, the workflow starts by helping you choose and configure a backend. Backend Options Option 1: Azure Storage Account as a remote backend A natural fit for Azure‑native and enterprise environments. The experience guides you through creating or selecting a storage account and configuring Terraform to store state securely in Azure. Option 2: HCP Terraform (Terraform Cloud) as a remote backend Ideal for teams already using Terraform Cloud. The guided flow helps you authenticate, connect to an existing organization and workspace, and generate the required backend configuration directly into your Terraform files. Option 3: Temporary workspace for quick validation Designed for learning and experimentation. You can run terraform plan and terraform apply directly in the Azure workspace with temporary state, without committing to a long‑term backend - ideal for quick validation, but not intended for production use. Each option includes an end‑to‑end walkthrough, so you can complete backend setup and run Terraform commands without leaving the VS Code environment or searching through external documentation. Connecting Code, State, and Deployment This experience connects three essential parts of the Terraform workflow: AI‑assisted code generation in Azure Portal Copilot Interactive editing and guided execution in VS Code for the web Flexible backend options for managing Terraform state Together, these pieces make it easier to move from idea to infrastructure in a structured, supported way—whether you’re new to Terraform or managing production workloads with established CI/CD pipelines. Available Now - and What’s Next The Open in VS Code experience for Terraform is now public preview in Azure Portal Copilot. We’re continuing to invest in this workflow, including clearer deployment guidance, future integration with GitHub Actions and other CI/CD pipelines, and deeper enhancements to the full‑screen Terraform editor experience. If you haven’t tried it yet, generate a Terraform configuration with Azure Copilot and open it in VS Code to go from prompt to production end to end in one connected workflow.Announcing MSGraph Provider Public Preview and the Microsoft Terraform VSCode Extension
We are thrilled to announce two exciting developments in the Microsoft ecosystem for Terraform infrastructure-as-code (IaC) practitioners: the public preview of the Terraform Microsoft Graph (MSGraph) provider and the release of the Microsoft Terraform Visual Studio Code (VSCode) extension. These innovations are designed to streamline your workflow, empower your automation, and make managing Microsoft cloud resources easier than ever. Public Preview: Terraform Microsoft Graph (MSGraph) Provider The Terraform MSGraph provider empowers you to manage Entra APIs like privileged identity management as well as M365 Graph APIs like SharePoint sites from day 0 by leveraging the power and flexibility of HashiCorp Configuration Language (HCL) in Terraform. resource "msgraph_resource" "application" { url = "applications" body = { displayName = "My Application" } response_export_values = { all = "@" app_id = "appId" } } output "app_id" { value = msgraph_resource.application.output.app_id } output "all" { // it will output the whole response value = msgraph_resource.application.output.all } Historically, Terraform users could utilize the `azuread` provider to manage Entra features like users, groups, service principals, and applications. The new `msgraph` provider also supports these features and extends functionality to all beta and v1 Microsoft Graph endpoints. Querying role assignments for a service principal The below example shows how to use the `msgraph` provider to grant app permissions to a service principal: locals { MicrosoftGraphAppId = "00000003-0000-0000-c000-000000000000" # AppRoleAssignment userReadAllAppRoleId = one([for role in data.msgraph_resource.servicePrincipal_msgraph.output.all.value[0].appRoles : role.id if role.value == "User.Read.All"]) userReadWriteRoleId = one([for role in data.msgraph_resource.servicePrincipal_msgraph.output.all.value[0].oauth2PermissionScopes : role.id if role.value == "User.ReadWrite"]) # ServicePrincipal MSGraphServicePrincipalId = data.msgraph_resource.servicePrincipal_msgraph.output.all.value[0].id TestApplicationServicePrincipalId = msgraph_resource.servicePrincipal_application.output.all.id } data "msgraph_resource" "servicePrincipal_msgraph" { url = "servicePrincipals" query_parameters = { "$filter" = ["appId eq '${local.MicrosoftGraphAppId}'"] } response_export_values = { all = "@" } } resource "msgraph_resource" "application" { url = "applications" body = { displayName = "My Application" requiredResourceAccess = [ { resourceAppId = local.MicrosoftGraphAppId resourceAccess = [ { id = local.userReadAllAppRoleId type = "Scope" }, { id = local.userReadWriteRoleId type = "Scope" } ] } ] } response_export_values = { appId = "appId" } } resource "msgraph_resource" "servicePrincipal_application" { url = "servicePrincipals" body = { appId = msgraph_resource.application.output.appId } response_export_values = { all = "@" } } resource "msgraph_resource" "appRoleAssignment" { url = "servicePrincipals/${local.MSGraphServicePrincipalId}/appRoleAssignments" body = { appRoleId = local.userReadAllAppRoleId principalId = local.TestApplicationServicePrincipalId resourceId = local.MSGraphServicePrincipalId } } SharePoint & Outlook Notifications With your service principals properly configured, you can set up M365 endpoint workflows such an outlook notification template list as shown below. The actual service principal setup has been omitted from this code sample for the sake of brevity, but you will need Sites.Manage.All, Sites.ReadWrite.All, User.Read, and User.Read.All permissions for this example to work: data "msgraph_resource" "sharepoint_site_by_path" { url = "sites/microsoft.sharepoint.com:/sites/msgraphtest:" response_export_values = { full_response = "@" site_id = "id || ''" } } resource "msgraph_resource" "notification_templates_list" { url = "sites/${msgraph_resource.sharepoint_site_by_path.output.site_id}/lists" body = { displayName = "DevOps Notification Templates" description = "Centrally managed email templates for DevOps automation" template = "genericList" columns = [ { name = "TemplateName" text = { allowMultipleLines = false appendChangesToExistingText = false linesForEditing = 1 maxLength = 255 } }, { name = "Subject" text = { allowMultipleLines = false appendChangesToExistingText = false linesForEditing = 1 maxLength = 500 } }, { name = "HtmlBody" text = { allowMultipleLines = true appendChangesToExistingText = false linesForEditing = 10 maxLength = 10000 } }, { name = "Recipients" text = { allowMultipleLines = true appendChangesToExistingText = false linesForEditing = 3 maxLength = 1000 } }, { name = "TriggerConditions" text = { allowMultipleLines = true appendChangesToExistingText = false linesForEditing = 5 maxLength = 2000 } } ] } response_export_values = { list_id = "id" list_name = "displayName" web_url = "webUrl" } } The MSGraph provider is to AzureAD as the AzAPI provider is to AzureRM. Since support for resource types is automatic, you can access the latest features and functionality as soon as they're released via the provider. AzureAD will continue to serve as the convenience layer implementation of a subset of Entra APIs. We invite you to try the new provider today: - Deploy your first msgraph resources - Check out the registry page - Visit the provider GitHub Introducing the Microsoft Terraform VSCode Extension The new official Microsoft Terraform extension for Visual Studio Code consolidates AzureRM, AzAPI, and MSGraph VSCode support into a single powerful extension. The extension supports exporting Azure resources as Terraform code, as well as IntelliSense, syntax highlighting, and code sample generation. It replaces the Azure Terraform and AzAPI VSCode extensions and adds some new features. Installation & Migration New users can install the extension by searching “Microsoft Terraform” within Visual Studio Marketplace or their “Extensions” tab. Users can also click this link to the Visual Studio marketplace. Users of the “Azure Terraform” extension can navigate to “Extensions” tab and selecting the old extension. Select the “Migrate” button to move to the new extension. Users of the “Terraform AzAPI Provider” extension will be directed to the new extension: New Features Export Azure Resources As Terraform This feature allows you to export existing Azure resources as Terraform configuration blocks using Azure Export for Terraform. This helps you migrate existing Azure resources to Terraform-managed infrastructure. Open the Command Palette (Command+Shift+P on macOS and Ctrl+Shift+P on Windows/Linux). Search for and select the command Microsoft Terraform: Export Azure Resource as Terraform. Follow the prompts to select the Azure subscription and resource group containing the resources you want to export. Select the azurerm provider or the azapi provider to export the resources. The extension will generate the Terraform configuration blocks for the selected resources and display them in a new editor tab. Support for MSGraph The new extension comes fully equipped with intellisense, code completion, and code samples just like the AzAPI provider. See the next section for recorded examples of these features within the AzureRM & AzAPI providers. Preexisting Features Intelligent Code Completion: Benefit from context-aware suggestions, like property names or resource types. Code Samples: Quickly insert code samples for your resources: Paste as AzAPI: Copy your existing resource JSON or ARM Templates into VSCode with the Microsoft Terraform extension, and it will automatically convert your code into AzAPI. The below example takes a resource JSON from the Azure Portal and pastes it into VSCode as AzAPI: Migrate AzureRM to AzAPI: Move existing AzureRM code to the AzAPI provider whenever you wish to. Read more in the Guide to migrate AzureRM resources to AzAPI Feedback We value your feedback! You can share your experience with the Microsoft Terraform extension by running the command Microsoft Terraform: Show Survey from the Command Palette. Your input helps us improve the extension and better serve your needs. Conclusion Whether you are managing traditional Azure resources, modern Microsoft Graph environments, or a combination of both, the new MSGraph provider and Microsoft Terraform VS Code extension are designed to help you deliver robust, reliable infrastructure—faster and with greater confidence. Stay tuned for further updates, workshops, and community events as we continue to evolve these offerings. Your feedback and participation are invaluable as we build the next generation of infrastructure automation together.Azure Verified Modules: Support Statement & Target Response Times Update
We are announcing an update to the Azure Verified Modules (AVM) support statement. This change reflects our commitment to providing clarity alongside timely and effective support for our community and AVM module consumers. These changes are in preparation to allow us to enable AVM modules to be published as V1.X.X modules (future announcement on this soon 🥳 sign up to the next AVM Community Call on July 1st 2025 to learn more). What is the new support statement? You can find the support statement on the AVM website here: https://azure.github.io/Azure-Verified-Modules/help-support/module-support/#support-statements For bugs/security issues 5 business days for a triage, meaningful response, and ETA to be provided for fix/resolution by module owner (which could be past the 5 days) For issues that breach the 5 business days, the AVM core team will be notified and will attempt to respond to the issue within an additional 5 business days to assist in triage. For security issues, the Bicep or Terraform Product Groups may step in to resolve security issues, if unresolved, after a further additional 5 business days. For feature requests 15 business days for a meaningful response and initial triage to understand the feature request. An ETA may be provided by the module owner if possible. Key changes from the previous support statement In short its two items: Increasing response time targets from: 3 to 5 business days for issues And from 3 to 5 business days for AVM core team escalation Handling bugs/security issues separately from feature requests Feature requests now have a 15 business day target response time The previous support statement outlined a more rigid structure for issue triage and resolution. It required module owners/contributors to respond within 3 business days, with the AVM core team stepping in if there was no response within a further 24 hours. In the event of a security issue being unaddressed after 5 business days, escalation to the product group (Bicep/Terraform) would occur to assist the AVM core team. There was also no differentiation between bugs/security issues and feature requests, which there now is. You can view the git diff of the support statement here Why the changes? Being honest, we weren't meeting the previous support statement 100% of the time, which we are striving for, across all the AVM modules. And we heard from you that, that wasn't ideal and we agree whole heartedly. Therefore, we took a step back, reflected, looked at the data available and huddled together to redefine what the new AVM support statement and targets should be. "Yeah, but why can't you just meet the previous support statement and targets?" This is a very valid question that you may have or be wondering. And we want to be honest with you so here are the reasons why this isn't possible today: Module owners are not 100% dedicated to only supporting their AVM modules; they also have other daily roles and responsibilities in their jobs at Microsoft. Sometimes this also means conflicting priorities for module owners and they have to make a priority call. We underestimated the impact of holidays, annual leave, public holidays etc. The AVM core teams responsibility is not to resolve all module issues/requests as they are smaller team driving the AVM framework, specs, tooling and tests. They will of course step in when needed, as they have done so far today 👍 We don't get as many contributions from the open-source community as we expected and would still love to see 😉 For clarity we always love to see a Pull Request to help us add new features or resolve bugs and issues, even for simple things like typos. It really does help us go faster 🏃➡️ "How are you going to try and avoid changing (increasing) the support statement and targets in the future?" Again another very valid ask! And we reflected upon this when making these changes to the support statement we are announcing here. To avoid this potential risk we are also taking the following actions today: Building new internal tooling and dashboards for module owners to discover, track and monitor their issues and pull requests across various modules they may own, across multiple languages. (already complete and published 👍) This tooling will also help the AVM core team track issues and report on them more easily to help module owners avoid non-compliance with the targets. Continue to push for, promote, and encourage open-source community contributions Prevent AVM modules being published as V1.X.X if they are unable to prove compliance with the new support statement and targets (sneak peek into V1.X.X requirements) Looking further into the future we are also investigating the following: Building a dedicated AVM team, separate from the AVM core team, that will triage, work on, and fix/resolve issues that are nearing or breaching the support statement and targets. Also they will look into feature requests as and where time allows or are popular/upvoted heavily where module owners are unable to prioritize in the near future due to other priorities. Seeing where AI and other automation tooling can assist with issue triage and resolution to reduce module owner workload. Summary We hope that this provides you with a clear understanding of the changes to the AVM support statement and targets and why we are making these. We also hope you appreciate our honesty on the situation and can see we are taking action to make things better while also reflecting and amending our support statements to be more realistic based on the past 2 years of launching and running AVM to date. Finally we just want to reassure everyone that we remain committed to AVM and have big plans for the rest of the calendar year and beyond! 😎 And with this in mind we want to remind you to sign up to the next AVM Community Call on July 1st 2025 to learn more and ask any questions on this topic or anything else AVM related with the rest of the community 👍 Thanks The AVM Core TeamUnlocking the Best of Azure with AzureRM and AzAPI Providers
With the recent release of AzAPI 2.0, Azure offers two powerful Terraform providers to meet your infrastructure needs: AzureRM and AzAPI. The key question is, when should you use each one? This article offers a clear guide for Terraform users, particularly those familiar with the AzureRM provider, on some ideal scenarios for each. The recommendations provided within this post are jointly provided between HashiCorp and Microsoft; click here for HashiCorp's blogpost.Terraform on Azure February 2024 Update
Welcome to our February Terraform on Azure bimonthly update! Sorry that this one took so long; moving forward, we plan to return the planned bimonthly cadence. We’ll once again open with updates in our major investment areas, then close with upcoming goals or plans. We will be aiming for the next update in April!
