MCP for Beginners: Why Every AI Engineer and Developer Should Learn the Model Context Protocol
If you have spent any time building with large language models in the last year, you have hit the same wall everyone hits: your model is brilliant at reasoning but blind to the real world. It cannot read your database, call your internal API, search your documents, or trigger a deployment unless you hand-write glue code for every single integration. The Model Context Protocol (MCP) exists to tear that wall down, and Microsoft's open-source MCP for Beginners curriculum (reachable via the short link https://aka.ms/mcp-for-beginners) is the most complete, hands-on way to learn it. This post explains what MCP is, walks through the latest updates to the course, shows real code, and makes the case for why MCP belongs on your learning roadmap right now. Whether you are an AI engineer shipping agents to production, a developer wiring tools into Copilot, or a student trying to build a standout portfolio project. What is MCP, and why does it matter? Think of MCP as a universal translator for AI applications. Just as a USB-C port lets you connect any peripheral to any laptop without a custom cable per device, MCP lets an AI model connect to any tool or data source through one standardized protocol. The course uses exactly this analogy, and it holds up well. Before MCP, integrations were an M × N problem: every one of your M AI applications needed bespoke code to talk to each of your N tools. MCP turns that into an M + N problem. Build a tool once as an MCP server, and any MCP-compatible client, Claude Desktop, VS Code, Cursor, GitHub Copilot, and many others — can use it immediately. The protocol is built on a clean client–server model with a small set of primitives: Tools — functions the model can call (query a database, send an email, run code). Resources — data the server exposes for context (files, records, documents). Prompts — reusable, parameterized prompt templates. Sampling — a server asking the client's LLM to generate a completion, enabling collaborative workflows. Elicitation — a server requesting structured input from the user mid-task. Roots — boundaries that tell a server which directories or resources it is allowed to operate on. Communication runs over JSON-RPC, with transports for local processes ( stdio ) and remote servers (streamable HTTP). That standardization is the whole point: write to the spec, and you interoperate with the entire ecosystem. What's new: the latest updates to the course The MCP for Beginners curriculum is actively maintained, and the public changelog reads like a release log for a living product. Here are the most important recent changes, drawn directly from that changelog. 1. Aligned to MCP Specification The biggest update: the entire curriculum has been validated against the current MCP Specification 2025-11-25 and the latest official SDKs. Stale references to older spec revisions (2025-03-26 and 2025-06-18) were corrected across the security, transport, real-time search, sampling, and stdio-server modules, with links repointed to the canonical modelcontextprotocol.io spec paths. A gap analysis confirmed the course already covers every primitive introduced or expanded in the latest spec: Sampling — covered in lesson 3.14 and Advanced Topics. Elicitation (including URL mode) — in Core Concepts and Protocol Features. Roots — in the Introduction, Core Concepts, and Root Contexts. Tasks (experimental, long-running operations) — in Core Concepts and Protocol Features. Tool Annotations ( readOnlyHint / destructiveHint ) — in Core Concepts and Protocol Features. 2. Samples validated against current SDKs Code that does not run is worse than no code at all, so the maintainers re-validated the core samples: TypeScript: @modelcontextprotocol/sdk resolved to 1.29.0 ; a tsc --noEmit type-check passed with no errors — the McpServer and StdioServerTransport APIs remain valid. Python: validated in an isolated virtual environment with mcp[cli] (1.27.2); FastMCP.list_tools() correctly returned the sample add and subtract tools. SDK version pins across labs were bumped (for example mcp>=1.26.0 ) and lockfiles regenerated so every sample tracks the current release. 3. A serious security pass Security is treated as a first-class concern, not an afterthought. A full audit across every dependency manifest and the sample source code was run, and npm audit now reports 0 vulnerabilities in every audited directory. Highlights: Transitive npm advisories (in the MCP Inspector dev tool, the OpenAI client, and the SDK) were remediated by bumping @modelcontextprotocol/inspector to 0.22.0 and pinning a patched shell-quote . A real code-level command-injection fix (OWASP A03): an open_in_vscode tool that used subprocess.run(..., shell=True) was rewritten to launch the resolved executable directly with no shell — closing a metacharacter-injection vector. Python dependencies were audited with pip-audit , and a vulnerable transitive werkzeug was pinned to a patched >=3.1.6 . For anyone learning to ship agents, this is gold: the course demonstrates the whole secure-development loop, not just the happy path. 4. New lessons and a growing curriculum The curriculum keeps expanding with practical, modern lessons: 5.17 Adversarial Multi-Agent Reasoning — two agents argue opposite sides of a question using shared MCP tools ( web_search + run_python ), judged by a third agent. Includes a Mermaid architecture diagram, orchestrators in Python, TypeScript, and C#, and use cases like hallucination detection, threat modeling, and API design review. 3.12 MCP Hosts — configuration for Claude Desktop, VS Code, Cursor, Cline, and Windsurf, with JSON templates and a transport comparison table. 3.13 MCP Inspector — a debugging guide for testing tools, resources, and prompts. 4.1 Pagination — cursor-based pagination patterns in Python, TypeScript, and Java. 5.16 Protocol Features — progress notifications, request cancellation, resource templates, and lifecycle management. 5. Microsoft product rebranding Content was updated to reflect Microsoft's rebranding: Azure AI Foundry → Microsoft Foundry, and the AI Toolkit (AITK) → Microsoft Foundry Toolkit Extension for VS Code. If you have seen older tutorials referencing the previous names, the curriculum is now current. Your first MCP server: see how little code it takes The course's "first server" lesson builds a simple calculator. Here is the shape of a minimal MCP server in Python using FastMCP , which mirrors the validated sample in the repo. Notice how the protocol plumbing disappears — you just decorate functions. # server.py — a minimal MCP server with two tools from mcp.server.fastmcp import FastMCP # Name your server; this identifies it to MCP clients mcp = FastMCP("Calculator") @mcp.tool() def add(a: int, b: int) -> int: """Add two numbers and return the result.""" return a + b @mcp.tool() def subtract(a: int, b: int) -> int: """Subtract b from a and return the result.""" return a - b if __name__ == "__main__": # Run over stdio so local hosts (VS Code, Claude Desktop) can connect mcp.run() The same idea in TypeScript, using the official SDK validated at version 1.29.0 : // server.ts — minimal MCP server in TypeScript import { McpServer } from "@modelcontextprotocol/sdk/server/mcp.js"; import { StdioServerTransport } from "@modelcontextprotocol/sdk/server/stdio.js"; import { z } from "zod"; const server = new McpServer({ name: "Calculator", version: "1.0.0" }); // Register a tool with a typed input schema server.tool( "add", { a: z.number(), b: z.number() }, async ({ a, b }) => ({ content: [{ type: "text", text: String(a + b) }], }) ); // Connect over stdio and start listening const transport = new StdioServerTransport(); await server.connect(transport); That is a complete, runnable server. The docstrings and schemas matter: MCP exposes them to the model so it knows when and how to call each tool. Clear descriptions are effectively prompt engineering for your tools — a common pitfall is leaving them vague, which leads to the model misusing or ignoring the tool. Connecting it in VS Code Once your server runs, an MCP host connects to it. A typical VS Code / host configuration looks like this: { "servers": { "calculator": { "command": "python", "args": ["server.py"] } } } Lesson 3.12 (MCP Hosts) covers the equivalent JSON for Claude Desktop, Cursor, Cline, and Windsurf, and lesson 3.13 shows how to use the MCP Inspector to test your tools before wiring them into a host — the single best debugging habit you can build early. How the course is structured The curriculum is organized as a progressive journey with hands-on code in C#, Java, JavaScript, Python, Rust, and TypeScript. It is grouped into phases: Foundations (Modules 0–2): Introduction, Core Concepts, and Security. Building (Module 3): Getting Started — 15 lessons covering your first server and client, LLM clients, VS Code integration, stdio and HTTP streaming, testing, deployment, auth, hosts, the Inspector, sampling, and MCP Apps. Growing (Modules 4–5): Practical Implementation and Advanced Topics — 17 advanced lessons including Azure integration, OAuth2, Entra ID auth, scaling, multi-modality, context engineering, custom transports, and adversarial multi-agent reasoning. Mastery (Modules 6–11): Community Contributions, Lessons from Early Adoption, Best Practices, Case Studies, a Microsoft Foundry Toolkit workshop, and an end-to-end 13-lab PostgreSQL capstone. That final module is the standout for portfolio building: a complete, production-flavored path that takes you from architecture and row-level security through database design, a FastMCP server, semantic search with pgvector and Azure OpenAI, testing, Docker deployment to Azure Container Apps, and monitoring with Application Insights. Why developers should learn MCP now For AI engineers MCP is becoming the default integration layer for agents. Instead of re-implementing tool calling for every framework, you write to one open protocol and your tools work everywhere. The advanced modules — sampling, roots, elicitation, scaling, routing, and adversarial multi-agent patterns — are exactly the techniques you need to move agents from demo to production. For developers MCP is already wired into tools you use daily: VS Code, GitHub Copilot, Claude Desktop, Cursor, and more. Learning to build an MCP server means you can expose your systems — internal APIs, databases, CI/CD — to AI assistants safely. The security-first approach in the course (OAuth2, Entra ID, RBAC, dependency auditing) teaches you to do this the right way from day one. For students MCP is a rare opportunity to learn a technology while it is still early, with a free, beginner-friendly, Microsoft-maintained curriculum and code in six languages. The 13-lab capstone alone is a genuine portfolio project. And with content translated into 50+ languages, the barrier to entry is low no matter where you are. Responsible and secure by design A recurring theme worth calling out: the course does not treat security and governance as optional extras. It models real practices you should carry into your own work: Least privilege via roots — constrain what a server can touch. Tool annotations — mark tools readOnlyHint or destructiveHint so clients can warn users before destructive actions. No shells for user input — the command-injection fix is a textbook example of why you never pass untrusted input through a shell. Dependency hygiene — audit with npm audit and pip-audit , and pin patched releases. Proper auth — dedicated lessons on OAuth2 and Microsoft Entra ID. Key takeaways MCP standardizes how AI connects to tools and data, turning a combinatorial integration problem into a simple, reusable one. The course is current, validated against MCP Specification 2025-11-25 with SDKs at TypeScript 1.29.0 and Python mcp 1.27.2 . Samples actually run, and the repo demonstrates a full secure-development loop with 0 reported vulnerabilities after auditing. It is broad and deep: from a 10-line calculator server to a 13-lab production capstone, in six languages. It is the fastest credible path to MCP fluency for AI engineers, developers, and students alike. Get started today Open the course: https://aka.ms/mcp-for-beginners (redirects to the GitHub repository). Fork and clone it — use a sparse checkout to skip translations for a faster download: git clone --filter=blob:none --sparse https://github.com/microsoft/mcp-for-beginners.git cd mcp-for-beginners git sparse-checkout set --no-cone "/*" "!translations" "!translated_images" Build your first server with lesson 3.1 in your language of choice. Debug it with the MCP Inspector, then connect it in VS Code. Go deep with the 13-lab database capstone, and read the official spec at modelcontextprotocol.io. Track what's new in the changelog and join the community discussions. MCP is quietly becoming the connective tissue of the AI ecosystem. The earlier you learn it, the more leverage you will have — and Microsoft's MCP for Beginners is the clearest on-ramp available. Star the repo, build a server this week, and start connecting your AI to the world.
MCP Server Authorization with Azure API Management: From Simple to Advanced
Why put API Management in front of your MCP servers The Model Context Protocol (MCP) has quickly become the standard way for AI agents, such as GitHub Copilot in VS Code, to reach external tools and data. As soon as an MCP server does anything meaningful, the same questions that govern any API resurface: who is allowed to call it, what are they allowed to do, and how do you enforce that consistently across many servers without rewriting each one. Azure API Management (APIM) answers those questions for MCP. It sits between the MCP client and the tool backend and applies the controls you already trust for REST APIs: identity validation, OAuth, rate limiting, IP filtering, and observability. Crucially, APIM speaks the MCP authorization specification, which is built on OAuth 2.1 and Protected Resource Metadata (PRM, RFC 9728). That means APIM can do more than block bad requests. It can actively drive an interactive sign-in from the IDE, so the user logs in with their own identity and the agent acts on their behalf. This article walks through a progression of authorization scenarios, each one building on the last: The simple case: validate a token and block everything else. Triggering an interactive sign-in from VS Code for an MCP server that APIM hosts from your own APIs. Going beyond "is this a tenant user" to "does this user have the right attribute" with Entra app roles. Fronting an existing external MCP server and letting it drive its own OAuth flow (GitHub as the example). Governing which tools of an existing MCP server an agent is actually allowed to invoke. APIM MCP capabilities and the basic authorization options API Management exposes MCP servers in two distinct ways, and the authorization story differs slightly for each. Expose a REST API as an MCP server. APIM takes an API it already manages and projects selected operations as MCP tools. You own the operations, so you choose exactly which ones become tools at configuration time. This is the right mode when the capability you want to expose is an API you control. Expose an existing MCP server (passthrough). APIM fronts a remote MCP-compatible server (LangChain, an Azure Function, GitHub's remote MCP server, your own container) and relays the MCP protocol to it. APIM governs access, but the upstream server still owns its tool catalog. On top of either mode, you have a spectrum of authorization options: Subscription keys for simple, machine-to-machine access where a shared secret in a header is acceptable. Token validation with Microsoft Entra ID, where APIM acts as the protected resource and verifies a bearer token on every call. Interactive OAuth 2.1 sign-in, where APIM advertises Protected Resource Metadata so an MCP client can discover the authorization server, log the user in, and retry with a user token. Authorization passthrough, where an external MCP server presents its own authorization challenge and APIM relays it faithfully so the client authenticates directly against the upstream's identity provider. The rest of the article works through these options in increasing order of capability. The example setup The walkthroughs in the first three scenarios all use the same backend so you can reproduce them without standing up anything of your own: the publicly available Star Wars API at Star Wars API. It is a simple, read-friendly REST API (characters, films, planets, starships, and so on) imported into API Management as a normal API and then projected as an MCP server. The reason this single API is enough to illustrate the whole progression is that, in API Management, one underlying API can back several independent MCP servers, each exposing a different slice of its operations. For example, you can create: A read-only MCP server that exposes only the GET operations, for agents that should be able to query data but never change it. A write-capable MCP server that exposes the POST, PUT, or DELETE operations, for trusted automation that is allowed to mutate state. Same backend API, two MCP servers, two different tool surfaces. Each of these servers is an independent resource in APIM, so each one can carry its own authorization. Both can require an authenticated user (Scenarios 1 and 2), and you can go further by protecting only the sensitive one: gate the write-capable server behind an Entra app role so that, even among authenticated users, only those who carry a specific claim can reach the mutating tools. That app-role mechanism is the subject of Scenario 3, and it composes naturally with the multi-server split described here. Registering the MCP API in Microsoft Entra ID Before any of the policies below can validate a token, you need an application registration in Microsoft Entra ID that represents the MCP API. This registration is what defines the audience and scope that tokens are issued for, and it is the source of the mcp-audience, mcp-scope, and (indirectly) mcp-client-id values that the policies reference. Create it once and reuse it across all the MCP servers in this article. In the Azure portal, open Microsoft Entra ID, then App registrations, then New registration. Name it (for example, star-wars-mcp-api), choose single-tenant, and register. Record the Application (client) ID and the Directory (tenant) ID. Open Expose an API and add an Application ID URI. Accept the default api://<app-id>. This URI is your token audience. Still under Expose an API, add a delegated scope named MCP.Access, set its consent display name and description, set the state to Enabled, and save. Authorize the client that will request the scope. Under Expose an API, select Add a client application and enter the client ID of the MCP client. For VS Code, this is the built-in Microsoft authentication client aebc6443-996d-45c2-90f0-388ff96faa56. Check the MCP.Access scope and save. These steps produce the four constants the validation policy needs: Named value Comes from Example entra-tenant-id The Directory (tenant) ID from step 1 11111111-1111-1111-1111-111111111111 mcp-audience The Application ID URI from step 2 api://22222222-2222-2222-2222-222222222222 mcp-scope The scope name from step 3 MCP.Access mcp-client-id The client ID of the calling app from step 4 aebc6443-996d-45c2-90f0-388ff96faa56 [!NOTE] mcp-client-id is the identity of the application calling the MCP server, not the MCP API itself. For VS Code it is the built-in Microsoft authentication client, and its value lands in the token's appid claim, which is why the validation policy lists it under client-application-ids. If your tenant blocks the first-party VS Code client, register your own public client application and use its client ID instead. [!TIP] For the privileged-access feature in Scenario 3, you will also declare an app role on this same registration. You do not need it yet, but it is convenient to know that all identity configuration for these servers lives on this one app registration. With that backend and structure in mind, the scenarios below build up the authorization model one capability at a time. Scenario 1: The simple case, validate the token and block unauthorized access The most basic protection is to require a valid Entra ID token on every MCP request and reject anything that fails validation. No interactive flow, no roles, just a gate. APIM does this with the validate-azure-ad-token policy. The policy checks the issuing tenant, the audience (your MCP API), the calling client application, and the required scope. Anything that does not satisfy all four is rejected with a 401. <policies> <inbound> <base /> <validate-azure-ad-token tenant-id="{{entra-tenant-id}}" header-name="Authorization" failed-validation-httpcode="401" failed-validation-error-message="Unauthorized. Access token is missing or invalid."> <client-application-ids> <application-id>{{mcp-client-id}}</application-id> </client-application-ids> <audiences> <audience>{{mcp-audience}}</audience> </audiences> <required-claims> <claim name="scp" match="any"> <value>{{mcp-scope}}</value> </claim> </required-claims> </validate-azure-ad-token> </inbound> <backend> <base /> </backend> <outbound> <base /> </outbound> <on-error> <base /> </on-error> </policies> The values in double braces are APIM named values: centralized constants, defined once and shared by every MCP server. They map directly to the four values produced by the Entra app registration in the example setup (entra-tenant-id, mcp-audience, mcp-scope, and mcp-client-id). Storing them as named values keeps the policy free of hardcoded identifiers and lets every server reuse the same configuration. This gets you a server that nobody can call without a properly minted token. What it does not do is help a fresh client obtain that token in the first place. That is the next scenario. Scenario 2: Driving an interactive sign-in from VS Code for an APIM-hosted MCP server When you expose one of your own APIs as an MCP server, you usually want a developer to open VS Code, connect to the server, and be prompted to sign in with their Microsoft account. No pre-shared key, no manual token handling. APIM achieves this by behaving as a well-mannered OAuth 2.1 protected resource. Using the Star Wars MCP server from the example setup, each selected operation becomes a tool the agent can call, so an agent can answer "which films featured the character named Leia" by calling the underlying API through APIM. How the sign-in flow works The protocol choreography is what turns a plain 401 into an interactive login: Two ingredients make this work: a 401 challenge that points to a metadata document, and the metadata document itself. The challenge: a 401 that points the client to its metadata Instead of a bare 401, APIM returns a WWW-Authenticate header carrying the URL of the server's Protected Resource Metadata. This is what tells the client "you need a token, and here is where to learn how to get one." Keeping this logic in a shared policy fragment means every MCP server reuses it. Notice the mcpResourceMetadataUrl reference in the fragment below. It is not hardcoded; it is a context variable that each MCP server sets in its own server-level policy before including this fragment (you will see that wiring in the per-server policy later in this scenario). The fragment simply reads whatever value the calling server provided. This indirection is what keeps the fragment pluggable: the same shared challenge-and-validate logic serves every MCP server, while each server supplies its own PRM URL. In most deployments the PRM endpoint is a single, dynamic one (built in the next section) that derives the resource from the request path, so the variable just carries that server's path. But because the URL is configurable per server rather than baked into the fragment, you retain flexibility for the cases that need it. <fragment> <!-- No token: challenge with the per-server PRM URL set by the caller --> <choose> <when condition="@(!context.Request.Headers.ContainsKey("Authorization"))"> <return-response> <set-status code="401" reason="Unauthorized" /> <set-header name="WWW-Authenticate" exists-action="override"> <value>@("Bearer resource_metadata=\"" + (string)context.Variables.GetValueOrDefault("mcpResourceMetadataUrl", "") + "\"")</value> </set-header> </return-response> </when> </choose> <!-- Token present: validate against shared named values --> <validate-azure-ad-token tenant-id="{{entra-tenant-id}}" header-name="Authorization" failed-validation-httpcode="401" failed-validation-error-message="Unauthorized. Access token is missing or invalid."> <client-application-ids> <application-id>{{mcp-client-id}}</application-id> </client-application-ids> <audiences> <audience>{{mcp-audience}}</audience> </audiences> <required-claims> <claim name="scp" match="any"> <value>{{mcp-scope}}</value> </claim> </required-claims> </validate-azure-ad-token> </fragment> Creating the /.well-known PRM endpoint in APIM with a policy This is the part that often surprises people: APIM itself serves the metadata document. There is no separate identity service to stand up. You publish one small anonymous API at the service root that answers GET /.well-known/oauth-protected-resource/*, derives the resource value from the requested path, and returns a JSON document pointing at Microsoft Entra ID as the authorization server. Create a blank HTTP API named well-known with an empty API URL suffix so it resolves at the service root, add a GET operation with the template /.well-known/oauth-protected-resource/*, clear the subscription requirement so it is reachable anonymously, and apply this policy: <policies> <inbound> <base /> <!-- Build the resource URL from the requested PRM sub-path --> <set-variable name="resourceUrl" value="@{ var prefix = "/.well-known/oauth-protected-resource"; var path = context.Request.OriginalUrl.Path; var resourcePath = path.Length > prefix.Length ? path.Substring(prefix.Length) : ""; return "https://" + context.Request.OriginalUrl.Host + resourcePath; }" /> <return-response> <set-status code="200" reason="OK" /> <set-header name="Content-Type" exists-action="override"> <value>application/json</value> </set-header> <set-body>@{ return new JObject( new JProperty("resource", (string)context.Variables["resourceUrl"]), new JProperty("authorization_servers", new JArray( "https://login.microsoftonline.com/{{entra-tenant-id}}/v2.0")), new JProperty("scopes_supported", new JArray("{{mcp-prm-scope}}")), new JProperty("bearer_methods_supported", new JArray("header")) ).ToString(); }</set-body> </return-response> </inbound> <backend> <base /> </backend> <outbound> <base /> </outbound> <on-error> <base /> </on-error> </policies> The {{mcp-prm-scope}} named value populates the scopes_supported array of the metadata document. It tells the client which delegated scope to request when it goes to the authorization server, so it must be the fully qualified scope value: the token audience (the Application ID URI from the app registration) followed by the scope name. With the example values that is api://22222222-2222-2222-2222-222222222222/MCP.Access. In other words, it is the combination of the mcp-audience and mcp-scope values defined in the example setup. Named value Value to set Example mcp-prm-scope <mcp-audience>/<mcp-scope> api://22222222-2222-2222-2222-222222222222/MCP.Access [!NOTE] Keep mcp-prm-scope in sync with the scope the validation fragment requires. The PRM document advertises this scope so the client requests it, and validate-azure-ad-token then checks for it in the scp claim. A mismatch means the client obtains a token without the scope APIM expects, and validation fails. Because the policy builds the resource value from the request path, this single endpoint serves metadata for every MCP server you ever add. The Star Wars server, a future inventory server, and anything else all share it. Wiring it onto the MCP server Each MCP server only needs to declare its own metadata URL and include the shared fragment: <policies> <inbound> <base /> <set-variable name="mcpResourceMetadataUrl" value="https://apim-contoso-mcp.azure-api.net/.well-known/oauth-protected-resource/star-wars-mcp/mcp" /> <include-fragment fragment-id="mcp-entra-auth" /> </inbound> <backend> <base /> </backend> <outbound> <base /> </outbound> <on-error> <base /> <include-fragment fragment-id="mcp-auth-challenge-onerror" /> </on-error> </policies> On the VS Code side, the configuration is deliberately plain. With no subscription-key header present, the client falls straight into the OAuth flow: { "servers": { "star-wars-mcp": { "url": "https://apim-contoso-mcp.azure-api.net/star-wars-mcp/mcp", "type": "http" } } } Restart the server in VS Code, and it detects the 401, reads the metadata, opens a browser sign-in, requests consent on first use, and then loads the tools using the user's token. [!CAUTION] Do not read the response body with context.Response.Body inside MCP server policies. It forces response buffering and breaks the MCP streaming transport. If global diagnostic logging is enabled, set the Frontend Response payload bytes to log to 0 at the All APIs scope. Scenario 3: Beyond tenant membership, authorize on a user attribute with app roles Validating a token confirms the caller is a signed-in user in your tenant with the right scope. That is often not enough. Some MCP servers expose sensitive tools that only a subset of users should reach. You want to express "this user is not only part of the tenant, but has a specific attribute that permits this server." Microsoft Entra app roles are the optimal mechanism for this. You declare a role on the MCP API app registration, assign it to specific users or to a security group, and Entra ID emits a roles claim in the access token whenever your API is the audience. APIM then authorizes on that claim. App roles beat the groups claim here because they avoid the group overage problem, they are scoped to the application, and they travel with the app. Declaring and assigning the role On the MCP API app registration, under App roles, create a role: Setting Value Display name Privileged Access Allowed member types Users/Groups Value Privileged.Access Description Access to privileged MCP servers Then, on the matching enterprise application, under Users and groups, assign the users (or, better, a security group) to the Privileged Access role. The Value field is the exact string that lands in the token roles claim, so it cannot contain spaces. [!TIP] Keep User assignment required set to No on the enterprise application. Unassigned users still obtain a valid token with the MCP.Access scope and keep access to the non-privileged servers. They simply do not carry the roles claim, so the privileged servers reject them. Enforcing the claim in the per-server policy The shared mcp-entra-auth fragment is used by every server, so the role requirement must not live there. Place the check in the privileged server's own policy, right after the fragment include. The token is already validated at that point, so this step is pure authorization. Because the caller is authenticated but not authorized, return 403, not 401, and do not emit a challenge: re-authenticating will not grant a role the user does not have. <policies> <inbound> <base /> <set-variable name="mcpResourceMetadataUrl" value="https://apim-contoso-mcp.azure-api.net/.well-known/oauth-protected-resource/star-wars-mcp/mcp" /> <include-fragment fragment-id="mcp-entra-auth" /> <!-- Privileged guardrail: require the Privileged.Access app role --> <choose> <when condition="@(!context.Request.Headers.GetValueOrDefault("Authorization","").Replace("Bearer ","").AsJwt().Claims.GetValueOrDefault("roles", new string[0]).Contains("Privileged.Access"))"> <return-response> <set-status code="403" reason="Forbidden" /> <set-header name="Content-Type" exists-action="override"> <value>application/json</value> </set-header> <set-body>{"error":"forbidden","message":"You lack the Privileged.Access role required for this MCP server."}</set-body> </return-response> </when> </choose> </inbound> <backend> <base /> </backend> <outbound> <base /> </outbound> <on-error> <base /> <include-fragment fragment-id="mcp-auth-challenge-onerror" /> </on-error> </policies> One operational detail worth calling out: app-role assignments only appear in newly issued tokens. A user who is granted the role after they signed in must obtain a fresh token. In VS Code, run MCP: Reset Cached Tokens (or sign out of the Microsoft account from the Accounts menu), then restart the server and sign in again. You can confirm the result by pasting the access token into https://jwt.ms and checking for "roles": ["Privileged.Access"]. Scenario 4: Fronting an existing external MCP server that drives its own sign-in So far APIM has been the authorization resource. But many valuable MCP servers already exist and run their own identity. GitHub publishes a remote MCP server with dozens of tools, and it authenticates users against GitHub's own OAuth authorization server. You do not want to re-implement that. You want APIM to govern access (rate limits, IP rules, logging, a single managed endpoint) while letting the upstream own the login. This is the "expose an existing MCP server" passthrough mode. When you register GitHub's remote MCP server behind APIM, the gateway relays the upstream's own authorization challenge. The client never authenticates against Entra here. It authenticates directly against GitHub. The flow, confirmed by probing the gateway: A call to the APIM endpoint with no token returns GitHub's own 401 with a WWW-Authenticate header, relayed through APIM. The Protected Resource Metadata that GitHub serves advertises authorization_servers: ["https://github.com/login/oauth"], so the client knows to log in at GitHub. The PRM resource reflects the APIM host, because GitHub builds it from the forwarded Host header. The client trusts the APIM endpoint while still logging in at GitHub. VS Code completes the GitHub sign-in and the full tool catalog loads. In the proof of concept this surfaced all 47 GitHub tools through the single APIM endpoint. The client configuration is again just a URL pointing at APIM: { "servers": { "github-via-apim": { "url": "https://apim-contoso-mcp.azure-api.net/github-mcp/mcp", "type": "http" } } } The key insight is that APIM transparently relays the backend's authentication challenge. GitHub remains the authorization server, GitHub tolerates being fronted by APIM, and you get a governed, centrally managed entry point without owning the identity flow. [!NOTE] Passthrough only relays what the upstream advertises. If the backend's PRM resource value and the actual MCP transport endpoint differ by a path segment, some clients fall back to deriving the metadata location from the server URL and can miss it. When you onboard a custom self-authenticating server, verify that the resource it advertises matches the exact URL the client connects to. Scenario 5: Restricting which tools of an existing MCP server an agent may call Passthrough raises a governance question that token validation alone cannot answer. A developer may legitimately have permission to merge a pull request through GitHub, but you may not want their AI agent to perform that action autonomously. You want to allow the read and discovery tools while blocking the destructive write tools, at the gateway, regardless of what the client tries. What is and is not possible for an external server It is important to be precise here, because the capability differs from the REST-as-MCP mode: For a REST-API-exposed-as-MCP server, you pick which operations become tools at creation time. That is native tool selection and the cleanest possible filter. For an existing/external MCP server, APIM does not enumerate the upstream's tools. The portal Tools blade explicitly states that tools are not visible for external MCP servers, and there is no allow-list property for them. APIM also cannot safely rewrite the tools/list response, because reading the response body breaks the streaming transport and the list may arrive as text/event-stream. What APIM can do reliably, and server-agnostically, is block the invocation. Every tool call arrives as a JSON-RPC tools/call request in the request body, which APIM can inspect safely. The deny-listed tools remain visible in the catalog, but any attempt to invoke one is intercepted at the gateway and returned a JSON-RPC error before it ever reaches the upstream. The reusable deny-list fragment The block is driven by a per-server named value (a comma-separated list of tool names), so the same fragment governs every external server. Only the named value changes. <!-- Fragment: mcp-tool-filter (include after the auth fragment) --> <fragment> <choose> <when condition="@(context.Request.Body != null)"> <set-variable name="mcpMethod" value="@{ try { var body = context.Request.Body.As<JObject>(preserveContent: true); return (string)body?["method"] ?? string.Empty; } catch { return string.Empty; } }" /> <choose> <when condition="@(((string)context.Variables["mcpMethod"]).Equals("tools/call", StringComparison.OrdinalIgnoreCase))"> <set-variable name="mcpToolName" value="@{ var body = context.Request.Body.As<JObject>(preserveContent: true); return (string)body?["params"]?["name"] ?? string.Empty; }" /> <!-- mcpBlockedTools is a comma-separated deny-list set by the per-server policy before this include --> <set-variable name="mcpBlocked" value="@{ var tool = ((string)context.Variables["mcpToolName"]).Trim().ToLowerInvariant(); var deny = ((string)context.Variables.GetValueOrDefault("mcpBlockedTools", "")).ToLowerInvariant().Split(',').Select(t => t.Trim()); return deny.Contains(tool); }" /> <choose> <when condition="@((bool)context.Variables["mcpBlocked"])"> <return-response> <set-status code="200" reason="OK" /> <set-header name="Content-Type" exists-action="override"> <value>application/json</value> </set-header> <set-body>@{ var id = "null"; try { var body = context.Request.Body.As<JObject>(preserveContent: true); id = body?["id"]?.ToString(Newtonsoft.Json.Formatting.None) ?? "null"; } catch {} return "{\"jsonrpc\":\"2.0\",\"id\":" + id + ",\"error\":{\"code\":-32602,\"message\":\"Unknown tool: " + ((string)context.Variables["mcpToolName"]) + "\"}}"; }</set-body> </return-response> </when> </choose> </when> </choose> </when> </choose> </fragment> The deny-list itself lives in a named value, one per server: APIM named value. Comma-separated, case-insensitive. mcp-blocked-tools-github = merge_pull_request,create_repository,delete_repository,push_files,create_or_update_file,issue_write,label_write # <policies> <inbound> <base /> <set-variable name="mcpResourceMetadataUrl" value="https://apim-contoso-mcp.azure-api.net/.well-known/oauth-protected-resource/github-mcp/mcp" /> <include-fragment fragment-id="mcp-entra-auth" /> <set-variable name="mcpBlockedTools" value="{{mcp-blocked-tools-github}}" /> <include-fragment fragment-id="mcp-tool-filter" /> </inbound> <backend> <base /> </backend> <outbound> <base /> </outbound> <on-error> <base /> <include-fragment fragment-id="mcp-auth-challenge-onerror" /> </on-error> </policies> Generic per-server pattern: mcp-blocked-tools-<server> = <comma,separated,tool,names> Wiring it onto the GitHub passthrough server <policies> <inbound> <base /> <set-variable name="mcpResourceMetadataUrl" value="https://apim-contoso-mcp.azure-api.net/.well-known/oauth-protected-resource/github-mcp/mcp" /> <include-fragment fragment-id="mcp-entra-auth" /> <set-variable name="mcpBlockedTools" value="{{mcp-blocked-tools-github}}" /> <include-fragment fragment-id="mcp-tool-filter" /> </inbound> <backend> <base /> </backend> <outbound> <base /> </outbound> <on-error> <base /> <include-fragment fragment-id="mcp-auth-challenge-onerror" /> </on-error> </policies> Now when the agent tries to merge a pull request, the gateway returns a clean -32602 Unknown tool error and the upstream is never touched. Read and discovery tools continue to work. The tool still appears in the client's catalog. Adding governance for another external server is just one more named value plus the same fragment include. No new policy logic. Key takeaways API Management turns MCP servers into governed resources, applying the same identity, traffic, and observability controls you already use for APIs. Start simple with validate-azure-ad-token to gate access, then graduate to a full interactive sign-in by serving Protected Resource Metadata from a single APIM policy. You can publish multiple MCP servers from one underlying API, for example a read-only server and a read-write server, by selecting different operations. App roles let you authorize on a user attribute, not just tenant membership, and the check belongs in the per-server policy so shared logic stays clean. For existing external servers, APIM relays the upstream's own OAuth flow, so a server like GitHub keeps owning its identity while you keep central governance. When an external server's full tool surface is too broad, APIM can block specific tool invocations at the gateway with a reusable, named-value-driven policy, so a user's agent cannot perform actions the user could perform manually. References About MCP servers in Azure API Management Secure access to MCP servers in API Management Expose REST API in API Management as an MCP server Expose and govern an existing MCP server validate-azure-ad-token policy reference Policy fragments in API Management RFC 9728: OAuth 2.0 Protected Resource Metadata MCP authorization specification Star Wars API (example backend) MCP for BeginnersMastering Query Fields in Azure AI Document Intelligence with C#
Introduction Azure AI Document Intelligence simplifies document data extraction, with features like query fields enabling targeted data retrieval. However, using these features with the C# SDK can be tricky. This guide highlights a real-world issue, provides a corrected implementation, and shares best practices for efficient usage. Use case scenario During the cause of Azure AI Document Intelligence software engineering code tasks or review, many developers encountered an error while trying to extract fields like "FullName," "CompanyName," and "JobTitle" using `AnalyzeDocumentAsync`: The error might be similar to Inner Error: The parameter urlSource or base64Source is required. This is a challenge referred to as parameter errors and SDK changes. Most problematic code are looks like below in C#: BinaryData data = BinaryData.FromBytes(Content); var queryFields = new List<string> { "FullName", "CompanyName", "JobTitle" }; var operation = await client.AnalyzeDocumentAsync( WaitUntil.Completed, modelId, data, "1-2", queryFields: queryFields, features: new List<DocumentAnalysisFeature> { DocumentAnalysisFeature.QueryFields } ); One of the reasons this failed was that the developer was using `Azure.AI.DocumentIntelligence v1.0.0`, where `base64Source` and `urlSource` must be handled internally. Because the older examples using `AnalyzeDocumentContent` no longer apply and leading to errors. Practical Solution Using AnalyzeDocumentOptions. Alternative Method using manual JSON Payload. Using AnalyzeDocumentOptions The correct method involves using AnalyzeDocumentOptions, which streamlines the request construction using the below steps: Prepare the document content: BinaryData data = BinaryData.FromBytes(Content); Create AnalyzeDocumentOptions: var analyzeOptions = new AnalyzeDocumentOptions(modelId, data) { Pages = "1-2", Features = { DocumentAnalysisFeature.QueryFields }, QueryFields = { "FullName", "CompanyName", "JobTitle" } }; - `modelId`: Your trained model’s ID. - `Pages`: Specify pages to analyze (e.g., "1-2"). - `Features`: Enable `QueryFields`. - `QueryFields`: Define which fields to extract. Run the analysis: Operation<AnalyzeResult> operation = await client.AnalyzeDocumentAsync( WaitUntil.Completed, analyzeOptions ); AnalyzeResult result = operation.Value; The reason this works: The SDK manages `base64Source` automatically. This approach matches the latest SDK standards. It results in cleaner, more maintainable code. Alternative method using manual JSON payload For advanced use cases where more control over the request is needed, you can manually create the JSON payload. For an example: var queriesPayload = new { queryFields = new[] { new { key = "FullName" }, new { key = "CompanyName" }, new { key = "JobTitle" } } }; string jsonPayload = JsonSerializer.Serialize(queriesPayload); BinaryData requestData = BinaryData.FromString(jsonPayload); var operation = await client.AnalyzeDocumentAsync( WaitUntil.Completed, modelId, requestData, "1-2", features: new List<DocumentAnalysisFeature> { DocumentAnalysisFeature.QueryFields } ); When to use the above: Custom request formats Non-standard data source integration Key points to remember Breaking changes exist between preview versions and v1.0.0 by checking the SDK version. Prefer `AnalyzeDocumentOptions` for simpler, error-free integration by using built-In classes. Ensure your content is wrapped in `BinaryData` or use a direct URL for correct document input: Conclusion Using AnalyzeDocumentOptions provides a cleaner and more reliable way to work with query fields in Azure AI Document Intelligence using C#. By aligning with the latest SDK approach, developers can simplify implementation, reduce common errors, and improve code maintainability. Keeping up with SDK enhancements and recommended practices ensures more accurate and efficient document data extraction. As Azure AI capabilities continue to evolve, adopting modern integration patterns will help you build scalable and future-ready document processing solutions with greater confidence. Reference Official AnalyzeDocumentAsync Documentation. Official Azure SDK documentation. Azure Document Intelligence C# SDK support add-on query field.Introducing Learn Cloud: A VS Code Extension to simplify your First Deployment to the Cloud.
Have you ever wanted to deploy your code to the cloud, but felt overwhelmed by the complexity and options? Do you wish there was a way to learn the basics of cloud computing while working on your own project? Whether you have an existing codebase or you want to start from a beginner friendly starter project, Learn Cloud will help you get your app up and running in the cloud in minutes.Learn Cloud: Simplifying Cloud Deployments for Students and Educators on VS Code
Are you struggling with cloud deployment? 🌥️ Check out the incredible Learn Cloud extension for Visual Studio Code! This extension simplifies the process of deploying your code to the cloud, offering step-by-step guides and easy-to-follow documentation.Agents League: The Esports-Inspired Hackathon Where AI Agents Battle for Glory
Ready to put your AI skills to the ultimate test? Agents League is here, a dynamic, esports-inspired developer challenge that brings the thrill of live competition to the world of agentic AI. Whether you're a seasoned AI developer or just getting started, this is your chance to build, compete, and win. What is Agents League? Agents League is a week-long hackathon running as part of AI Skills Fest (June 4–14, 2026). Unlike traditional hackathons, Agents League combines live AI coding battles, asynchronous project submissions, and a thriving Discord community all competing for a total prize pool of $55,000 USD. This isn't just about building it's about showcasing what's possible with agentic AI in a format that's fast, competitive, and globally accessible. Three Challenge Tracks Pick One or Compete in All 1. Creative Apps Build innovative applications using GitHub Copilot for AI-assisted development. Show off your creativity and demonstrate how AI can accelerate app creation from concept to code. 2. Reasoning Agents Create intelligent agents using Microsoft Foundry that solve complex problems through multi-step reasoning. This track is all about building agents that can think, plan, and execute. 3. Enterprise Agents Build business-ready knowledge agents integrated with Microsoft 365 Copilot, authored in Copilot Studio. Perfect for developers focused on real-world enterprise solutions. Live Microsoft Reactor Events—Don't Miss the Battles! The heart of Agents League beats through live Microsoft Reactor events. Watch experts go head-to-head in live coding battles, learn cutting-edge techniques, and get inspired for your own submissions: Event What You'll Learn Creative Apps Battle See GitHub Copilot in action as experts build innovative apps live Reasoning Agents Battle Watch multi-step reasoning agents come to life with Microsoft Foundry Enterprise Agents Battle Learn to build M365-integrated agents with Copilot Studio 👉 View the full event series Key Dates Registration Deadline: June 12, 2026, 12:00 PM PT Hacking Period: June 4–14, 2026 Submission Deadline: June 14, 2026, 11:59 PM PT What You Get Live coding battles with expert demonstrations Curated technical experiences and on-demand content Learning resources on Microsoft Learn and AI Skills Navigator Community support through Discord GitHub-based submissions for transparent, collaborative judging Why Participate? Agents League isn't just another hackathon. It's designed as a streamlined, competitive format that: ✅ Fits into your schedule with focused, time-boxed challenges ✅ Provides real-world product innovation experience ✅ Offers global accessibility—participate from anywhere ✅ Demonstrates the latest capabilities of agentic AI, including new IQ tools ✅ Connects you with a passionate developer community Ready to Enter the Arena? Register Now for Agents League Before you register: Review the Hackathon Rules and Regulations for prize categories and judging criteria Join the Microsoft Reactor event series for live battles and learning Check out the Microsoft Event Code of Conduct Join the Conversation Have questions? Want to connect with fellow competitors? Join the Agents League community on Discord and start strategizing with developers from around the world. Whether you're building creative apps, reasoning agents, or enterprise solutions—the arena awaits. May the best agent win! 🏆 Agents League hackathon is open to the public and offered at no cost. Government employees should check with their employers to ensure participation is permitted in accordance with applicable policies. Related Links: Agents League Hackathon Registration Microsoft Reactor Series AI Skills FestBuilding 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 HorizonDB: Enterprise-Ready Postgres, Engineered for the AI Era
Affan Dar, Vice President of Engineering, PostgreSQL at Microsoft Charles Feddersen, Partner Director of Program Management, PostgreSQL at Microsoft Today at Microsoft Build, we’re pleased to announce the public preview of Azure HorizonDB, a new enterprise-ready Postgres-compatible database service designed to meet the needs of modern AI applications, alongside a set of enhancements to our PostgreSQL tooling in Visual Studio Code to further streamline the developer experience. Postgres is rapidly solidifying its role as a foundational layer in modern data architectures, with accelerating adoption across industries. For developers, it has become the preferred platform for new application development, driven by its extensible architecture, mature extension ecosystem, and adherence to open standards and APIs. At the same time, enterprises are choosing Postgres to re-platform and modernize existing systems, taking advantage of its ability to support a broad range of operational workloads while enabling advanced capabilities such as vector-based data access all within a single, interoperable platform. A Postgres Platform Grounded in Security, Resilience, Scale, and Performance Azure HorizonDB is purpose-built to meet these demands, combining the flexibility developers expect from Postgres with the operational rigor enterprises require. It extends the core Postgres engine with cloud-native capabilities such as integrated identity, fine-grained network and security controls, and seamless lifecycle management, while preserving full compatibility with the open ecosystem of extensions and tools. At the same time, HorizonDB introduces advanced, natively integrated capabilities like vector data support and AI model management, enabling new classes of intelligent applications without sacrificing transactional integrity or developer productivity. These capabilities are backed by a platform designed for enterprise performance and scale. HorizonDB supports databases up to 128 TB, scales out with up to 15 read replicas for high-throughput workloads, and delivers sub-millisecond commit latency across availability zones for low-latency transactions and high availability. This combination is critical for modern applications that require consistent performance under load, including high-concurrency transactional systems, real-time AI-driven interactions, and globally distributed services. The result is a unified platform that scales from the first line of code to globally distributed, mission-critical systems. Enterprise adoption ultimately depends on trust in the platform itself. Azure HorizonDB delivers this with native integration into Microsoft Entra ID for centralized identity and access control, private endpoints for network isolation, and built-in encryption to protect data at rest and in transit. These capabilities are essential for meeting compliance requirements and enabling organizations to run mission-critical workloads with confidence, without added complexity. This foundation is critical for any application, but it becomes indispensable for AI, where secure access to data and controlled model interaction underpin every intelligent experience. Building on this, HorizonDB introduces a set of integrated AI capabilities designed to bring intelligence directly into the database. Run Fast, Memory-Efficient Vector Search with DiskANN HorizonDB brings high-performance vector search directly into Postgres through DiskANN with spherical quantization. This enables efficient, low-latency similarity search at scale while significantly reducing memory and storage overhead. Spherical quantization works by normalizing vectors and encoding them into compact representations that preserve angular distance, allowing the system to compare vectors efficiently with minimal loss in accuracy. The result is the ability to index and query large embedding datasets within the transactional engine itself, making vector search a first-class capability rather than an external dependency. "HorizonDB is compelling because it brings a PostgreSQL-compatible foundation, AI-native capabilities and enterprise-grade controls closer to the operational data layer." Jennings Balavari, Founder, Opsen AI Build Smarter Apps with Hybrid Search in Postgres HorizonDB supports hybrid search by combining vector similarity through pgvector with full-text search enabled via the pg_textsearch extension, allowing applications to match both semantic meaning and precise keyword relevance in a single query. This enables more accurate, context-aware results, such as blending intent-driven retrieval with exact term matching for search, recommendations, or RAG scenarios. By unifying these capabilities within Postgres, HorizonDB improves result quality while simplifying application design without the need for external search systems. Operationalize AI with Built-In AI Model Management Working with vectors requires models to generate, interpret, and evolve embeddings, making model lifecycle a core part of the application stack. HorizonDB introduces integrated AI model management to simplify how models are registered, versioned, and governed alongside data, including built-in support for generative GPT models and ranking models. For example, GPT models can be used to generate summaries, responses, or structured outputs directly from application data, while ranking models enable relevance scoring for search results or recommendations over vector results. By managing these models alongside the data they operate on, HorizonDB ensures consistency, traceability, and control, creating a unified environment where models and data evolve together. “As we build a multi-tenant, AI-driven commerce platform, HorizonDB has been particularly compelling in two areas: scale and how close AI capabilities are to the data itself. Running vector search, filtering, and model-driven workflows directly inside the database removes a lot of the complexity we’d normally manage across separate services." James Frawley, CIAO, ReFiBuy Bring AI into SQL with AI Functions With models managed in place, AI Functions provide a direct way to invoke them from within SQL and application logic. These functions are implemented through the azure_ai extension, which brings model invocation directly into the Postgres engine. This allows developers to embed inference into queries and transactions, eliminating the need for external orchestration. By bringing model execution closer to the data, AI Functions reduce latency, simplify application design, and make intelligent behavior a natural extension of existing Postgres workloads. "What stood out with HorizonDB is that it aligns closely with how we already think about the problem. Instead of stitching together multiple components, it brings transactional data, vector search, and AI capabilities into a single platform, which simplifies the architecture without forcing a complete rethink." Mohsin Shafqat, Director Software Engineering, Nasdaq Run Reliable, Event-Driven Workflows with AI Pipelines Finally, AI Pipelines operationalize these capabilities through reliable, event-driven workflows for model execution and data processing. Pipelines execute on data changes, enabling real-time asynchronous reactions without external orchestration and ensuring consistent, repeatable behavior as data evolves. Combined with model management and AI Functions, they turn embedded intelligence into something that can be run, scaled, and trusted in production, while inheriting the database’s high availability and failover characteristics for resilience. Pipelines can also be visualized and observed in real time through the Visual Studio Code extension for PostgreSQL, giving developers and operators immediate visibility into execution flow, state, and outcomes Modern Unified Experience for Data, AI, and Operations in VS Code As intelligence becomes a core part of the data platform, the developer and operator experience becomes equally critical. HorizonDB extends seamlessly into Visual Studio Code with enhanced PostgreSQL tooling that works across any Postgres deployment, not just HorizonDB. Features like AI-assisted query plans and integrated monitoring enable faster debugging and optimization, helping teams understand both database performance and AI-driven behaviors. At the same time, for Azure-based deployments, the experience is deeply integrated with platform capabilities, enabling management of networking configuration, server parameters, and server logs directly from the development environment, streamlining operations across application and infrastructure layers. Azure HorizonDB brings together enterprise-grade security, deep Postgres compatibility, and a modern AI-native data platform, all engineered for developers. It scales efficiently across workloads, from transactional systems to intelligent applications, while delivering a world-class, Azure-integrated experience in Visual Studio Code for both developers and operators. Ready to get started with Azure HorizonDB? Azure HorizonDB is now available in public preview in Australia East, Central US, Sweden Central, West US 2, and West US 3 regions. Additionally, East US, Canada Central, Indonesia Central, Italy North, Japan East, Korea Central, and Poland Central will be available in the coming weeks. You can get started today by creating a new HorizonDB instance using the Azure portal, API’s, or the Visual Studio Code extension for PostgreSQL to begin exploring these capabilities firsthand. To learn more, dive deeper into our documentation and sign-up today to try AI model management in a limited preview.
