Advancing hardware security with open-source Integrated HSM technology

At this year’s OCP Global Summit, Microsoft announced Project Tessera, the evolution of the Azure Integrated Hardware Security Module (HSM), into a fully open-source initiative developed in collaboration with Marvell®, Oracle, and Open Compute Project (OCP). Project Tessera advances our broader commitment to open, industrywide standards for platform security.

The motivation behind Project Tessera is straightforward: the entire industry benefits when we collaborate and advance hardware security together.

Project Tessera carries forward the workload directly attached to the HSM architecture introduced by Azure Integrated HSM, making the architecture, specifications, protocols, drivers, software, firmware, and reproducible build environments open source for the broader community. Over time, the initiative will advance toward a fully open-source silicon implementation, while making hardware broadly available, enabling organizations across the ecosystem to adopt, integrate, and contribute to the platform.

Explore the Tessera Integrated HSM GitHub

This approach builds on the model Microsoft established with other industry collaborators on Caliptra, a fully open-source silicon root-of-trust that has since been broadly adopted across the hardware ecosystem. Through Project Tessera, industry leaders including Microsoft, Marvell®, Oracle, and the Open Compute Project will apply that same model of transparency and collaboration to advance hardware key protection with the industry.

The cybersecurity landscape is rapidly changing, and protecting keys and credentials has never been more important. We are now facing two generational transformations that are fundamentally reshaping how we view the cybersecurity landscape:

AI is increasing the speed and scale of cyberattacksAI-orchestrated attacks are increasing the scale, speed, and sophistication of attacks, giving adversaries new ways to operate and compressing the time between vulnerability discovery and exploitation. These capabilities amplify risks such as credential theft, key exfiltration, and signing abuse.Keys and credentials are high-value control assets. When compromised, they can enable attackers to impersonate trusted entities, bypass security controls, authorize malicious operations, expose sensitive data, and undermine software security defenses. Protecting these assets requires infrastructure with layered, hardened protections capable of withstanding sustained attacks across multiple concurrent attack vectors.

Quantum computing is changing the cryptographic risk horizonQuantum computing promises transformative advances, but it also presents a risk to many of today’s cryptographic algorithms. A sufficiently powerful quantum computer could break widely used public-key cryptography, undermining digital signatures, authentication, and identity verification.Post-quantum cryptography was once viewed as an important but distant technology shift. Advances in quantum computing have changed that perspective as organizations recognize the urgency, scale, and complexity of the transition. HSM-backed signing infrastructure will be among the first critical systems to migrate, requiring HSMs that support post-quantum cryptography and are interoperable with classical HSMs to support migration.

These emerging threats motivated the development of Azure Integrated HSM, which was designed to meet rigorous security standards for hardware-based key protection, while also accelerating Microsoft’s transition to post-quantum cryptography through scale deployments of quantum resilient integrated HSMs.

Azure Integrated HSM introduced a workload-attached HSM that performs cryptographic operations closer to the workload while keys remain continuously protected within the HSM security boundary. This architecture strengthens key protection, improves cryptographic performance, offers crypto-agility, and provides a simpler operational model.

Tessera is an evolution of Azure’s first integrated HSM model, incorporating insights gained from deploying Azure Integrated HSM at scale, and advances the technology through collaboration in the Open Compute Project, with the goal of broadly addressing the challenges of key and credential management in the era of AI and quantum computing.

Eliminating key management anti-patterns

In central HSM deployment models, HSM infrastructure is separate from compute resources, requiring cryptographic operations to traverse the network. The resulting latency and operational dependencies can lead enterprises to adopt workarounds that improve performance or availability but unintentionally weaken key protections. Some of these common key-management anti-patterns include:

HSM keys may act as certificate authorities and endorse externally generated keys. These keys can then serve as trusted delegates without receiving the same hardware protection.

HSM generated keys may be created as extractable and exported from the HSM in wrapped form. When used outside of the HSM the keys may not receive assurance levels equivalent to a FIPS 140-3 Level 3 HSM and become more susceptible to exfiltration or misuse.

Other anti-patterns include caching keys outside of HSMs for resilience, using software-held keys to reduce network latency to remote HSMs, sharing keys and security domains to simplify governance, and relying on proprietary protocols for interoperability. These practices intend to prioritize operational flexibility but can make key protection, policy enforcement, and auditable provenance less consistent across environments, undermining the security value HSMs are designed to provide.

The goal of Project Tessera is to advance the integrated HSM model to address these challenges in the industry, without compromising on security. The project will deliver Tessera Integrated HSM, a fully open-source integrated HSM designed to consistently enforce FIPS 140-3 Level 3 key protection throughout the key’s lifecycle.

By combining strong hardware-rooted protection with an open-source implementation and open protocols, Tessera Integrated HSM creates a path toward greater transparency, interoperability, and innovation across the HSM ecosystem. The native support for quantum-resilient cryptography will help ease the industry’s transition to post-quantum cryptography.

Figure 1: Tessera Integrated HSM

Demonstrating an open, interoperable HSM ecosystem

Today at the Open Compute Project Global Summit, Microsoft and Marvell® demonstrated the Tessera Integrated HSM transfer protocols establishing HSM partition cloning and resiliency rings across a Tessera Integrated HSM and a Marvell® LiquidSecurity® 2 HSM. The demonstration showed how two heterogeneous HSMs can operate in a resilient and unified security domain. Non-extractable keys within the security domain always remain protected within the HSMs and are available only to the authorized HSM partitions participating in the security domain and remain under the sole control of the partition owner.

The Tessera Integrated HSM protocols use post-quantum cryptography to protect communication between HSMs. This enables authorized workloads with a Tessera Integrated HSM to use both classical cryptography and post-quantum cryptographic services while their keys remain secured within the HSM boundary and can only be authorized for use by the key owner.

Figure 2: Partition cloning example

The Project Tessera specifications, protocols, software libraries, drivers, firmware, and hardware are available through the Tessera Integrated HSM GitHub. Going forward, this repository will add more open-source silicon, new hardware designs, and enhancements developed with the community.

Expanding Project Tessera through confidential computing

The early collaborators working on Project Tessera within the OCP community are exploring how the Tessera Integrated HSM key protection architecture can extend beyond systems with dedicated integrated HSM hardware. As part of this work, the project is making a minimal, unikernel-based Tessera firmware stack open source, designed to run within hardware-isolated confidential computing environments.

This implementation uses the same firmware stack as the hardware integrated HSM, extending a common security architecture across HSMs and confidential computing environments. In this model, cryptographic keys are protected within a confidential computing container, which provides cryptographic services to securely bound workloads, including worker containers and virtual machines. The initial implementation leverages AMD SEV-SNP and integrates with open-source virtualization technologies such as OpenVMM, with the Open Compute community working to extend support to other confidential computing architectures.

The complementary deployment models in Project Tessera extend strong key protection across systems with different hardware capabilities and assurance requirements. For platforms without dedicated integrated HSM hardware, confidential computing provides broadly deployable, hardware-isolated key protection with a minimal trusted computing base.

Project Tessera provides the highest level of hardware assurance, protecting keys within a dedicated, tamper-resistant security boundary designed to meet demanding certification requirements, including FIPS 140-3 Level 3 and Common Criteria.

Figure 3: Protection profiles for assurance levels

The deployment models share the same Project Tessera firmware and programming model, giving organizations a consistent foundation for cryptographic security across their infrastructure while providing a natural path to integrated HSM and higher levels of assurance in newer systems.

Together, these models make strong key protection accessible across a broad range of systems with different security assurance needs, all built on a common, open architecture. As the Open Compute Project community continues to advance Tessera Integrated HSM, we see an exciting opportunity for broader industry collaboration to strengthen key protection, expand secure key management, and accelerate innovation across the ecosystem.

Explore the Tessera Integrated HSM GitHub

For more information, visit the Microsoft booth at the Open Compute Project Global Summit for live demonstrations, explore Tessera Integrated HSM implementation on GitHub, and read the Microsoft Infrastructure Community blog for additional hardware security announcements: OCP2026 Hardware Security Updates.

Check out Microsoft’s presence at OCP Summit this year: aka.ms/OCP2026

Learn more about Azure Infrastructure: aka.ms/silicontosystems

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Infrastructure for the frontier era: Scaling intelligence through open industry collaboration

At Microsoft, our vision is to build a Frontier Firm: one where people and technology work together, combining human expertise, context, and judgment with technology that can extend intelligence throughout everyday work. The potential is significant: helping people create, solve complex problems, and make progress on some of society’s most consequential challenges.

But realizing that potential requires frontier infrastructure. The next phase of Super Intelligence needs a unified infrastructure engine that delivers more intelligence with greater efficiency, making AI more available, reliable, and sustainable across science, healthcare, education, and the economy. This is the work of an entire ecosystem, and precisely the vision we have advanced for years through our industry collaboration within the Open Compute Project Foundation.

Designing silicon in the loop with real workloads

As we enter the next phase of Super Intelligence, inference is becoming the dominant workload and that’s where efficiency, latency, and cost really matter. Azure Maia 300, our next generation AI accelerator from our Maia family, advances the inference efficiency frontier. Maia 300 is a complete system designed for the new types of AI workloads emerging today: long-context reasoning, latency-sensitive conversational experiences, and sustained, multi-step agentic tasks. By improving efficiency across the system, we expect Maia 300 to deliver 40% more tokens per watt compared to leading GPU-based systems. And in a full 96-accelerator configuration, it delivers up to seven times the rack-scale token throughput of Maia 200.

Learn more about Maia 300

Maia reflects our system co-design approach. It is designed alongside Microsoft infrastructure and production workloads, bringing models, application frameworks, kernels, communication libraries, systems software, and custom silicon into one optimization loop. Maia 200 is deploying across the United States, Europe and Australia and delivering up to 1.7x more tokens per watt for built-in AI capabilities in Microsoft Teams, Copilot and Cowork experiences compared with leading GPU infrastructure.

Azure Maia 200 systems in a datacenter

AI is not only about accelerators. Agentic workloads create entirely new demands on CPUs. Every agent interaction generates orchestration, data retrieval, memory management, and service calls that must occur quickly and efficiently. That is why we designed Cobalt 200 as an agent-native CPU. Cobalt 200 delivers more than 50% performance improvement over Cobalt 100 and reduces agent call latency by 33%, while providing 23% higher throughput on agentic workloads.

Azure Cobalt 200 systems in a datacenter

Maia and Cobalt are designed in the loop with our largest enterprise workloads. That gives Microsoft a unique advantage in tuning performance, reliability, and cost to exactly what customers need in production.

We are applying the same principle to storage and security. The Azure Boost Data Processing Unit moves compression, networking transactions, and security functions away from the CPU onto purpose-built silicon, enabling us to deliver four times more performance while using significantly less power.

And Azure Integrated HSM makes security part of the hardware foundation, with our in-house security chip in all new datacenter servers. It brings cryptographic operations closer to the workload while keeping keys protected inside the hardware security boundary—not exposed in application memory.

Building an open, resilient AI fabric

Compute creates intelligence and networks make it usable at scale.

Working with industry partners, Microsoft developed Multipath Reliable Connection (MRC), rethinking Ethernet for AI. Its multi-plane architecture scales beyond 100,000 GPUs with two network tiers, reducing power, complexity, failure points, and cost. By intelligently distributing traffic across multiple paths and through packet spraying, MRC limits congestion and maintains reliable performance for frontier-scale training.

We are also advancing open scale-up connectivity through Optical Compute Interconnect Multi-Source Agreement (OCI MSA). OCI, the first optical specification for multi-rack scale-up systems, enables high-bandwidth, power-efficient, multi-vendor infrastructure. Moving forward, we will continue to work with the industry to expand participation in OCI MSA.

In parallel, The Ethernet for Scale-Up Networking (ESUN) workstream brings together more than 175 organizations to define requirements for Ethernet-based scale-up networking. The group has released specification version 1.0 and is developing version 1.1 for later this year. Read more about our networking innovations with the open community.

Rethinking power from grid to silicon

AI infrastructure is also forcing a fundamental redesign of power delivery. Through OCP and the Open Systems for AI initiative, Microsoft is helping advance the industry’s transition toward 800 volt direct current (VDC) infrastructure.

Mt. Diablo, Microsoft’s disaggregated high-voltage datacenter (DC) sidecar architecture, separates power conversion from the compute rack so each can scale independently. It includes a modular design supporting approximately 100 kilowatts (kW) to beyond one megawatt (MW), with redundant feeds, telemetry and optional energy storage. Microsoft, together with OCP partners, contributed Mt. Diablo specifications v0.7 and v1.0 to OCP.

Microsoft and its partners are advancing solid-state transformer-based architectures to make power conversion more efficient, responsive, and scalable for next-generation 800 VDC datacenters. Through OCP’s Clean Backup Power initiative, we are developing open requirements for reliable backup systems that reduce reliance on diesel. In parallel, Microsoft collaborated with partners to release a common grid-interface specification to align utilities, operators, and equipment vendors as hyperscale power architectures evolve. Read more about Microsoft’s approach to 800VDC transition and scaling power infrastructure sustainably.

Cooling as a first-class design consideration

Microsoft approaches cooling as a datacenter-wide challenge, driving innovation from DC facility design to rack-level liquid cooling technologies.

Our third-generation Azure Heat Exchanger Unit, Mt. Atlas, nearly doubles cooling capacity compared to the previous generation while maintaining the same operational footprint. We are also contributing public reference architecture through OCP to help accelerate industry adoption.

At the datacenter level, Microsoft is advancing a zonal cooling strategy in its next-generation AI datacenters to handle the growing mix of liquid-cooled accelerators and traditional air-cooled systems. By tailoring cooling to the specific needs of each workload, and introducing multiple independent water loops, each supplying coolant at different temperatures, we aim to increase efficiency and performance while supporting Microsoft’s energy, carbon, and water reduction goals.

Open hardware security innovation

Microsoft believes strong cloud security is built through openness, transparency, and industry collaboration. This principle is reflected in our founding role in the Confidential Computing Consortium, our work to establish Caliptra as an open-source silicon root of trust, and our contributions to the OCP S.A.F.E. security conformance framework. As AI reshapes the cybersecurity landscape and advances in quantum computing introduce new cryptographic risks, protecting the keys and credentials at the foundation of digital trust has never been more important.

To address these challenges, and building on our commitment to security transparency and industry collaboration, Microsoft, Marvell, and Oracle are introducing Tessera Integrated HSM, an open-source initiative for integrated hardware security modules. Tessera Integrated HSM carries forward the workload direct attached HSM architecture introduced by Azure Integrated HSM, open-sourcing its architecture, specifications, protocols, drivers, software, firmware, and silicon to the broader community. Learn more about Tessera Integrated HSM.

Fleet resiliency at scale

As AI infrastructure scales, fleet reliability is essential to protecting customer workloads, capacity, and service quality. Through OCP, Microsoft has published common RAS, debugging, telemetry, and diagnostics specifications, while contributing work on hardware fault management, CPU and GPU management, and fleet memory fault management. We are using years of fleet data and using AI to validate, predict, and drive fleet actions aimed at preventing faults, pinpointing issues, and recovering more autonomously. Learn more about how Microsoft is advancing fleet reliability through industry collaboration.

Advancing sustainability across the infrastructure stack

Scaling AI responsibly means considering the full datacenter lifecycle to help reach our 2030 commitments to be carbon negative, water positive, and zero waste. As a company, we are committed to incorporating sustainability into how we design, build, and operate our datacenters extending to the communities where we build them. Through OCP, Microsoft is collaborating with partners on low-embodied-carbon steel and concrete—with pathways to reduce concrete emissions by more than 50% per cubic yard.

We are advancing waste-heat reuse, and helping develop Cloud Services Product Category Rules for consistent, auditable lifecycle-carbon reporting. Inside our datacenters, closed-loop liquid cooling, intelligent power management, and renewable-energy agreements help reduce resource use, while Circular Centers reuse or recycle more than 90% of servers and components. Beyond the datacenter, we are investing in local skills, partnerships, and infrastructure so the communities hosting this growth can grow with us. Read Microsoft’s 2026 Environmental Sustainability report.

Building the frontier together

Our vision is to help every organization become a Frontier Firm, uniting human expertise with AI in a continuous learning loop that turns knowledge and ingenuity into scalable intelligence. Realizing that vision requires full-stack co-design: silicon, compute, memory, networking, power, cooling, models, and applications working as one secure, reliable, efficient, and sustainable platform while giving customers choice without passing complexity on to them.

Such a future cannot be realized by a single organization. Through OCP, we are advancing open interfaces, sharing lessons from operating infrastructure at global scale, and collaborating across the industry so innovation moves faster, and the ecosystem stops solving the same problems repeatedly. Together, we can transform frontier innovation into infrastructure that makes intelligence accessible and affordable for every organization, in every industry, and across every region of the world.

At OCP Global Summit 2026, we invite the community to build that future with us.

Build for what’s next

Learn more about Microsoft’s systems approach to infrastructure.

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AI transformation across the infrastructure lifecycle: From supply chain to fleet operations

AI infrastructure is a system, and every part of that system is connected. Decisions made in silicon and systems design influence how infrastructure is sourced, deployed, and operated across the fleet. And what we learn once that hardware is running can inform what we build next.

This feedback matters because the system never stands still. Demand shifts, component constraints emerge, new capacity comes online, and hardware requirements evolve across the fleet. Keeping infrastructure reliable means continually learning and adapting as requirements change.

At Microsoft, Azure Hardware Systems and Infrastructure works across that lifecycle, from systems architecture and design through supply chain, deployment, and fleet operations across Azure’s more than 80 regions and 500 datacenter campuses. This end-to-end view gives us an opportunity to connect insights across the hardware lifecycle, so what we learn in one part of the system can improve decisions across the others.

Learn more about Azure infrastructure

AI can accelerate that learning. Across our own AI transformation, we are applying agentic and AI tools to help teams connect information, understand what is changing, and act sooner while keeping human judgment at the center. The opportunity is bigger than making individual tasks faster. It’s to build a system that learns from how infrastructure is designed, sourced, and operated, and applies those learnings to what comes next. This approach is part of our broader AI transformation journey.

Start with the work, not the AI

This process has reinforced a critical lesson as we’ve scaled how we apply AI as a force multiplier across our cloud infrastructure: AI transformation starts with the work, not the technology. Speed matters, but the greater opportunity is to redesign how decisions are made: what information is available when a decision needs to happen, how quickly teams can understand what changed, and where human judgment matters most.

Our cloud supply chain is a good example of this principle in practice. Every month, demand-planning teams forecast Azure’s infrastructure needs years into the future, accounting for changing customer demand, regional needs, installed capacity, and decommissioning activity. When a plan changes, determining why could require reconciling information across multiple systems, turning a single investigation into a lengthy process. It was tempting to look at that work and ask where we could add an agent.

For any company, putting AI on top of a fragmented process can simply make the fragmentation move faster. Before applying AI, our teams mapped and simplified the work, established a shared data foundation with quality, governance, and access controls, and identified decisions where people needed to remain accountable. We call this approach “Lean before AI.”

Starting with end-to-end processes and taking an AI-driven approach provides new ways of working and moves teams to parallel execution rather than sequential handoffs, resulting in integrated, collaborative workflows.

From days of research to decisions in minutes

With this foundation in place, we approached demand planning differently. A multi-agent workflow can examine signals such as installed-base shifts, regional demand, and decommissioning changes, then help planners understand what changed, where, and what drove the movement. Work that previously took five to seven business days can now be completed in hours, and sometimes in less than 20 minutes. Across more than five monthly planning cycles, our full demand-planning team saw approximately 50% less manual effort and cycle time fell by up to 75% in selected workflows.

The same pattern is taking shape across planning, product data, sourcing, fulfillment, logistics, and operational workflows. Specialized agents are helping teams spend less time finding and reconciling information and more time applying expertise.

In fulfillment, understanding why rack delivery is blocked from meeting customer demand could require teams to pull information manually from multiple sources. An intelligent assistant now brings together information about blockers and compatible or incompatible supplies, saving investigation time by as much as 55%. In logistics, an AI-powered logistics agent brings together data across air, land, and sea options to help teams evaluate speed, cost, as well as carbon tradeoffs and forecast emissions.

Building the learning loop

These individual applications matter, but the larger opportunity is to connect them. Our cloud supply chain team is moving toward end-to-end multi-agent workflows across bill-of-materials generation, capacity delivery, spare-parts management, capacity docking, and sales and operations execution. This work reflects a broader shift in our business: moving beyond isolated experiments toward a faster, more resilient, and intelligent operating system that places human judgment at the center.

The important outcome is not simply speed. Planners can begin with connected evidence instead of spending days assembling it, giving them more time to examine the explanation, add business context, and determine what it means for the decision ahead.

That is the learning loop we want. AI helps people reach the evidence faster. People bring context and judgment, act on what they learn, and create new information that can improve the next decision.

Learning across the fleet

The hardware lifecycle does not end when a server reaches a datacenter. Once infrastructure is deployed, the challenge becomes keeping it operating reliably for customers. Across millions of nodes in our fleet, continuous monitoring generates signals that help our teams investigate issues and determine root causes to decide how to act.

Across Azure, we’re moving cloud reliability upstream—transforming fleet management from reactive firefighting into a closed-loop system that prevents defects, predicts failures, and automatically restores hardware back into service. As we move toward a self-healing fleet, we are applying the same principles: connecting data across the lifecycle, continuous evaluation, redesigning workflows for human-agent orchestration, and keeping engineers in control of production decisions. Ultimately, this is also when the next learning cycle begins: systems collect and analyze information about the fleet, and failure patterns become evidence for how suppliers design and build the next generation of hardware.

Azure failure prediction and detection uses AI to analyze fleet telemetry so teams can identify emerging hardware failure patterns sooner and take action before potential issues impact customers. Engineers retain oversight of production decisions. This has already resulted in a 92% reduction in disk-related virtual machine (VM) interruptions and reduced repair time on out-of-service nodes by 53%. For rack managers, prediction provides up to three days of advance warning, enabling proactive recovery that cuts out-of-service repairs by 40%.

We also proactively and periodically screen our fleet to identify hardware vulnerable to silent data corruption before customer workloads are deployed, helping strengthen platform reliability.

We are also developing workflows that preserve context as hardware moves through investigation and recovery. For faulted resources, these workflows track assignment, action, outcome, and next step, with policy and approval controls around fleet actions. History and outcomes can then inform future decisions.

This is where the broader systems story comes together. Demand-planning decisions influence sourcing. Logistics affects when capacity reaches a datacenter. Once hardware is running, fleet telemetry and operational outcomes create another source of learning. Information about component performance can help teams proactively address potential issues before customers experience them. Those insights can also feed forward into the next generation of silicon, system, and rack design, while giving suppliers information to improve future components.

AI can make that loop faster, but the value comes from helping the system work better as a whole.

What we learned when things did not work

Some of our most useful lessons came from approaches that fell short.

We learned that applying AI to one part of a fragmented process can accelerate that task while creating more work somewhere else. An agent might produce its output faster, but if a downstream team must interpret, reformat or reconcile it manually, the workflow as a whole has not improved.

That changed how we measured success. Instead of evaluating only the task an agent performs, teams must examine the full workflow: the work removed, the new work created, the quality of the decision, and the outcome.

Reliable, accessible, and well-governed data is a prerequisite, not an afterthought. AI cannot compensate for conflicting definitions, unclear permissions, or information isolated across systems.

And we learned not to become attached to a particular architecture or agent. Models, frameworks, and business needs continue to change. A solution that is useful today may need to be redesigned six months from now or retired if the original business need no longer applies.

The resulting rhythm is practical: begin with a consequential decision, simplify the work around it, connect the right governed data, build alongside the people who know the work, evaluate the complete outcome, and keep changing as the business and technology evolve.

What we measure next

The next phase of enterprise AI will require us to measure more than adoption: how many people use an agent, how many agents are deployed, or how much time they save. Those measures matter, but they don’t tell us whether the work itself has improved. Can a planner understand in minutes a change that once took days to explain? Can a fulfillment manager resolve a capacity blocker without manually reconciling information across systems? Can an engineer identify a potential hardware problem before it becomes a customer problem? And can teams apply their expertise, so the next decision is better than the last?

That is the direction we are pursuing: a way of working that keeps learning as the technology and the business change. We are not trying to build the largest collection of agents or automate decisions simply because we can. We are working to produce more useful output from the infrastructure, information, and expertise already in the system.

The yield imperative

If AI is going to change what the world can build, we need to keep evolving how we build the infrastructure behind it. By connecting insights across silicon, systems, supply chain, and fleet operations, each stage can help improve the next. The result is reliable infrastructure ready when customers need it, and a system that learns how to deliver it better with every cycle.

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Microsoft named a Leader in the 2026 Gartner® Magic Quadrant™ for Global Industrial AIoT Platforms

We’re proud to share that Microsoft has been named a Leader in the 2026 Gartner® Magic Quadrant™ for Global Industrial AIoT Platforms. We believe this recognition reflects our vision for the future of industrial operations: moving toward intelligent systems that continuously learn, adapt, and improve business outcomes.

Read the full 2026 Gartner® Magic Quadrant™ for Global Industrial AIoT Platforms report

As industrial organizations modernize, they need a foundation that connects operations across cloud and edge environments. Azure’s adaptive cloud approach, powered by Microsoft Azure IoT, Microsoft Azure Arc, Azure Local, Microsoft Fabric, and Microsoft Foundry, enables organizations to connect operational assets, contextualize data, apply AI-powered reasoning, and close the loop between insight and action.

The shift towards learning operations

The first wave of industrial digital transformation was driven by IoT, connecting operational assets and making industrial data accessible, at scale. That visibility remains the foundation, but on its own it is not enough. Industrial organizations are contending with skilled labor shortages, supply chain volatility, increasing customization demands, and growing operational complexity. Success now depends on turning operational knowledge into scalable intelligence that improves throughput, quality, resilience, safety, and sustainability.

This is where Industrial AI and Physical AI create new value. Industrial AI applies intelligence to operational data, identifying patterns, predicting outcomes, diagnosing conditions, and recommending actions. Physical AI extends these capabilities into the real world, enabling autonomous or human-assisted action that learns from results and improves performance over time. Together with IoT, they establish a business learning loop:

IoT helps organizations understand operations. The people learn.

Industrial AI helps organizations reason over operational data, identifying patterns, predicting outcomes, and recommending actions. The systems learn.

Physical AI helps organizations act, whether through autonomous operation or human-in-the-loop workflows. By measuring outcomes and feeding results back into future decisions, the process learns.

The outcome is more than automation. It is a transition from connected operations to learning operations, where every cycle of understanding, reasoning, action, measurement, and learning improves the next outcome. As the loop compounds over time, productivity increases, resilience improves, expertise scales, and the business itself becomes smarter.

Grounding the loop in organizational intelligence

A learning loop must be grounded in the operational context unique to each organization. By applying AI through secure, governed platforms, organizations can capture and scale the knowledge embedded in their people, processes, assets, and operations, while maintaining control of the expertise and intellectual property that differentiate their business. As that knowledge becomes institutional intelligence, it can be applied across adaptive workflows that continuously improve from real-world outcomes, helping organizations turn operational data into a durable source of competitive advantage.

To accelerate this journey, the recently announced Microsoft Frontier Company initiative brings together industry expertise and enterprise-grade AI engineering to help customers design, deploy, and scale AI systems grounded in their own organizational intelligence, so they can translate operational expertise into measurable business impact more rapidly.

Recognized as a leader in industrial AIoT

Gartner defines the global industrial AIoT platforms market as a series of seamlessly integrated technologies that deliver industrial data aggregation and curation, device management of industrial assets, ease of integration with IT systems, and the ability to unlock the value of industrial applications and AI.

We continue to help industrial organizations transform by focusing on the areas our customers prioritize:

Unified platform for industrial needs

Microsoft’s industrial AIoT platform extends Azure from cloud to edge, providing a consistent foundation for managing and securing industrial environments while connecting data and AI across operations. Key capabilities include Microsoft Azure IoT Hub, Azure IoT Operations, Microsoft Fabric, and Microsoft Foundry. Together, these capabilities help organizations make data-driven decisions, boost operational efficiency, and scale AI across varied deployment environments.

Comprehensive management and security

Microsoft offers a unified management and security plane where millions of distributed devices and assets, from factory Programmable Logic Controllers (PLCs) to autonomous vehicles, can be managed as first-class Azure resources. Devices and assets connected through Azure IoT Hub and Azure IoT Operations are onboarded as Azure Resource Manager resources, enabling deep integration with Azure Device Registry and Azure’s control-plane AI capabilities for governance, insights, and automation. Microsoft is advancing a Zero Trust security roadmap across the device lifecycle, from trusted identity, certificate management, secure updates, and firmware risk monitoring to policy-driven deployments and integrated SecOps. Encryption, confidential computing, sovereign operations, and auditable patching help customers strengthen resilience and meet evolving regulatory requirements.

Governed industrial data foundation

Microsoft provides a unified data plane delivered through Azure IoT Hub, Azure IoT Operations, Azure Device Registry, and Microsoft Fabric. The platform ingests OT, IoT, and enterprise data; transforms raw telemetry into structured, semantically aligned signals; supports Unified Namespace and ontology patterns; and makes governed, reusable, AI-ready data available across many different analytics and agent systems. Support for open formats and industry standards enables interoperable digital threads, digital twins, and AI-powered OT/IT workflows, while low-code and no-code options let subject matter experts drive the creation of data pipelines and analytics.

Agentic industrial operations

Microsoft is advancing industrial intelligence through agentic operations. Agentic AI can operate in both cloud and edge environments. In the cloud, agents use ontologies such as Fabric IQ to understand operational context, monitor conditions, and collaborate with teams through tools like Microsoft Teams. At the edge, agents run within Arc-enabled adaptive cloud environments, using local semantic models to reason over site-specific data and assets, enabling intelligent operations even during periods of intermittent connectivity. For industrial teams, this can support practical decisions: detecting equipment anomalies, recommending maintenance windows, and prioritizing responses to quality issues or production constraints.

Shaping the future of digital operations

Ultimately, the future isn’t about connecting more things. It’s about creating intelligent systems that can perceive, learn, reason, and act, where every machine, every process, and every action makes the next outcome better than the last.

By combining connected assets, governed industrial data, AI-powered insights, and intelligent action, organizations can create systems that continuously adapt and improve from real-world outcomes. We believe this is the future of digital operations: intelligent systems that learn and deliver lasting business value.

Microsoft’s robust partner ecosystem can help bring local expertise and tailored solutions to every industry, unlocking new opportunities and delivering even greater impact. Whether co-innovating on industry-specific solutions or scaling AI adoption globally, our partners are essential to helping customers build confidently on Azure.

Learn more

Discover how Microsoft’s industrial AIoT offerings can enhance your operations:

Explore the Azure IoT portfolio, Microsoft Fabric, Microsoft Foundry, and Copilot Studio.

Check out our Partner Resource Guide.

Recognized as a Leader

in 2026 Gartner® Magic Quadrant™ for Global Industrial AIoT Platforms

Read the report

Gartner, Magic Quadrant for Global Industrial AIoT Platforms, 15 September 2026, Scot Kim Et Al.

Gartner does not endorse any company, vendor, product or service depicted in its publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner publications consist of the opinions of Gartner’s business and technology insights organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this publication, including any warranties of merchantability or fitness for a particular purpose.

Gartner and Magic Quadrant are a trademark of Gartner, Inc., and/or its affiliates.

This graphic was published by Gartner, Inc. as part of a larger research document and should be evaluated in the context of the entire document. The Gartner document is available upon request from Microsoft.
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Responsible infrastructure at hyperscale: Managing the full lifecycle of Azure hardware

Every new generation of cloud infrastructure creates two jobs. We must deploy more capable systems quickly, and we must manage the hardware they replace responsibly.

Even though these jobs happen behind the scenes, the results matter to Microsoft Azure customers. Newer systems deliver more compute capacity from the space and power available in a datacenter. At the same time, the reuse, refurbishment, and recycling of older equipment can extend the life of valuable components and return materials to the supply chain, ensuring cost efficiency and reliability.

Managing this process starts early in the lifecycle, with the design of our silicon, servers, networks, and datacenters. It continues through years of operation. When equipment leaves active service, Microsoft Circular Centers help determine its next useful life.

Discover more about Microsoft Circular Centers

With new Circular Centers in Newport, Wales, and Sydney, Australia, this work now spans North America, Europe, and Asia Pacific. These facilities help us recover components, prepare space for new infrastructure, and get more value from the hardware and materials already in our system.

Getting more from every rack and every watt

Cloud infrastructure must keep pace with the work customers want to run. That means increasing compute capacity while making better use of the space and power available in each datacenter.

Compared with early general-purpose systems, today’s servers provide significantly more processor cores, more memory capacity, and network bandwidth. As shown in the chart below, Azure infrastructure has become both denser and more efficient over time. Since 2014, cores per rack have increased approximately 13-fold, while the power required to complete the same task has decreased by roughly 90%. For example, a workload such as code compilation that consumed approximately 100 watts on early systems can now be completed using less than 10 watts.

This increase in compute density means we’re able to provide more server capacity to support customer workloads using the same datacenter footprint. By delivering more useful work from each rack, newer infrastructure helps improve resource efficiency while supporting continued growth and scale to meet cloud and AI demand.

Source: Microsoft internal analysis using combined average data across general compute infra partners and Cobalt using industry benchmark performance such as SPEC CPU report and industry-standard utilization markdown.

Azure Cobalt is one example of this systems approach. Our custom-designed cloud processor allows Microsoft to optimize silicon, servers, networking, storage, and software together. Cobalt 200 delivers up to 50% higher performance than Cobalt 100 and incorporates the latest Microsoft security, networking, and storage technologies.

This constant cycle of innovation is one of the defining characteristics of cloud infrastructure. As new generations of cloud and AI infrastructure are deployed, older hardware is gradually taken out of service. What happens to the equipment being replaced?

Giving hardware its next useful life

Last year, Microsoft achieved a 92% reuse and recycling rate for decommissioned servers and components. However, at the scale we operate, retiring a server is a little more complex than simply sorting components into the correct recycling bin. Every server must be securely decommissioned, and data-bearing components wiped. Then we must decide how to recover the most value from it. Can the complete system serve another purpose? Can processors, memory, and other components keep working elsewhere? Which materials can return to the supply chain?

Microsoft Circular Centers manage these decisions as part of our datacenter operations. At these facilities, our staff give decommissioned hardware a series of possible next lives. Complete systems can support Microsoft labs and training environments, help schools and universities teach technical skills, or be sold to qualified buyers for continued use. Components can become spare parts for other systems. Materials are recycled when reuse is no longer possible.

Our Circular Centers operate as a connected global network. With recent launches in Wales and Australia, eight centers are now in operation across North America, Europe, and Asia Pacific. The network continues to grow, with a new center planned for San Antonio, Texas.

We are also investing in technologies that improve the efficiency and scale of circular operations. Through automation initiatives with AI-powered capabilities, such as robotic disassembly and autonomous material handling, we are helping accelerate the recovery of components and materials.

Making the most of every resource

As demand for cloud and AI continues to grow, every part of the infrastructure lifecycle matters. We must get more compute from every rack and every watt, while getting more value from every server and component. Circular Centers help us do both. They make responsible recovery part of how we grow Azure, renew the foundational infrastructure, and build capacity for what customers need next.

Learn More

Explore Azure migration and modernization.

Learn more about Microsoft’s silicon to systems approach to Azure Infrastructure.

Learn how Microsoft Circular Centers are scaling cloud supply chain sustainability.

Read Microsoft’s 2026 Environmental Sustainability Report.

Microsoft Circular Centers

Helping deliver towards our commitment on Zero Waste

Take a virtual tour

The post Responsible infrastructure at hyperscale: Managing the full lifecycle of Azure hardware appeared first on Microsoft Azure Blog.
Quelle: Azure

SQL Server on Azure Local is now generally available

Some of the world’s most critical databases run in places where cloud connectivity cannot be assumed. A remote industrial site, for example, may need production systems to continue operating when external connectivity is unavailable. A regulated organization may need sensitive data and processing to remain within sovereign boundaries.

Today, SQL Server on Azure Local is generally available for connected and disconnected operations. With this release, customers can modernize where their data resides while maintaining control over infrastructure, connectivity, and data placement. They can bring AI closer to their data with Foundry Local on Azure Local, currently in preview, and use eligible existing SQL Server licensing investments.

Explore SQL Server on Azure LocalRun SQL Server where your data needs to staySQL Server has a long history of supporting mission-critical workloads on customer infrastructure. Azure Local builds on that flexibility by bringing Azure infrastructure to customer-owned environments, giving organizations a consistent platform for running SQL Server across datacenters and edge locations.

Customers can choose the deployment model that fits each environment:

Connected environments: Run SQL Server locally on Azure Local, while using Azure Arc to manage SQL Server resources through Azure.Azure Local Disconnected Operations (ALDO): Run SQL Server in environments where external connectivity is restricted, intermittent, or unavailable, with operations continuing locally.This means organizations can choose the deployment approach that fits the requirements of individual environments rather than making the same connectivity decision across their entire data estate.

SQL Server on Azure Local – connected and disconnected operations.Bring AI closer to your dataModernizing infrastructure is only part of the opportunity. Organizations also want to bring generative AI to existing enterprise data, including information that cannot leave their environment.

With Foundry Local, customers can run AI models on Azure Local infrastructure alongside SQL Server, bringing inferencing closer to the data. This enables organizations to explore AI-powered applications while keeping sensitive information and processing within their environment.

This can be particularly valuable in sovereign, regulated, and edge scenarios, where organizations want the benefits of AI but need greater control over where models execute and where their data is processed.

The goal is simple: customers should not have to move sensitive data somewhere else simply to begin building intelligent applications around it.

Build on your existing SQL server investmentsModernization should also make it easier to build on existing investments.

SQL Server is licensed separately from the Azure Local infrastructure platform. For connected deployments, customers can use eligible existing SQL Server licenses, including licenses with Software Assurance or qualifying subscriptions, or use pay-as-you-go licensing through Azure Arc.

For fully disconnected deployments, customers can use eligible existing SQL Server licenses through Azure Hybrid Benefit.

This gives organizations options to modernize their SQL Server environments while taking advantage of eligible licensing investments they already own.

A foundation for sovereign and edge dataEnterprise data estates increasingly span cloud, datacenter, edge, and sovereign environments. The opportunity is not to force every workload into the same deployment model, but to give organizations a consistent path to modernization across them.

SQL Server on Azure Local extends that choice to mission-critical SQL Server workloads, helping customers modernize close to their data, applications, and operations while bringing Azure-consistent infrastructure and local AI capabilities into those environments.

SQL Server on Azure Local FAQWhat is SQL Server on Azure Local?SQL Server on Azure Local lets organizations run SQL Server on Azure Local infrastructure in their own datacenters and edge locations. It supports SQL Server workloads on virtual machines running Windows Server or Linux.

What is the difference between connected and disconnected deployments?Connected deployments use Azure connectivity and can use Azure Arc to manage SQL Server resources through Azure. Disconnected operations are designed for environments where external connectivity is restricted, intermittent, or unavailable, with operations continuing locally.

Who should consider SQL Server on Azure Local?It is designed for organizations that need local control because of sovereignty, regulatory, latency, operational continuity, or edge requirements, including public sector, defense, financial services, healthcare, manufacturing, energy, and other regulated or connectivity-constrained environments.

Can customers use existing SQL Server licenses?Eligible existing SQL Server licenses can be used according to applicable licensing terms. For connected deployments, customers can also use pay-as-you-go licensing through Azure Arc. Fully disconnected deployments use eligible existing licenses through Azure Hybrid Benefit.

Can organizations run AI close to their SQL Server data?Foundry Local on Azure Local brings AI inference to Azure Local environments and is designed to keep data processing on-premises. As of September 29, 2026, Foundry Local on Azure Local is currently available in preview, so availability and capabilities may change before general availability.

Where can I find deployment guidance?Microsoft Learn provides guidance for deploying SQL Server on Azure Local, including hardware selection, SQL Server installation, monitoring, performance tuning, high availability, and related Azure hybrid services.

Get Started with SQL Server on Azure LocalSQL Server on Azure Local is generally available for connected and disconnected deployment scenarios.

SQL Server on Azure Local – OverviewDeploy SQL Server on Azure LocalDeploy SQL Server on Azure Local Disconnected ModeLearn more about Azure Arc-enabled SQL ServerAdditional resources

Manage SQL Server licensing and billing with Azure ArcFoundry Local on Azure Local overviewFoundry Local deployment overview
The post SQL Server on Azure Local is now generally available appeared first on Microsoft Azure Blog.
Quelle: Azure

Ship agents faster with expanded model choice, voice agents, and continuous optimization

The best model for your business will keep changing. Adopting it should move your business forward, not send your team back to rebuild the architecture around it. As models advance, organizations need the freedom to choose the right model for each workload, and an agent foundation that can evolve with those choices.

Microsoft Foundry provides that model—and harness—agnostic foundation for building and running agents. Teams can adopt better models as they emerge while preserving their investments in the enterprise systems, knowledge, tools, and controls that make agents useful to their business.

Adopting a newer model is only the starting point. Foundry helps teams continuously improve their agents, using production traces to evaluate and refine instructions, skills, tools, and model choice against quality, latency, and cost. That’s the hill-climbing approach: observe, evaluate, optimize, validate, and repeat—with people in control

Learn more about Microsoft Foundry

Today, we’re advancing that foundation to help teams build and continuously improve agents that deliver business value:

Choose from a broader range of models as frontier AI advances.

Build voice experiences and support long-running work on the same agent foundation.

Equip agents with knowledge and tools that help them discover and apply the right capabilities.

Turn production insights into continuous improvement across agent quality, latency, and cost.

These advances help teams spend less time assembling infrastructure and more time building.

One customer putting these capabilities together is Fashable, which uses Foundry’s models, agents, knowledge, and tools to help fashion brands turn trends and ideas into clothing designs, virtual try-on experiences, and campaign imagery. By connecting these workflows with the existing brands’ systems, Fashable reports cutting the time to develop new fashion products from months to weeks, with one customer reducing its budget for physical samples by 60%.

Choose and evaluate frontier AI models in Microsoft Foundry

Frontier AI is advancing rapidly across providers. New capabilities are arriving in days, not months, and this week captures that momentum: the full GPT-6 family from OpenAI, including GPT-6 Sol and GPT-6 Luna, and Claude Opus 5.5 from Anthropic are now available in Microsoft Foundry. What makes this moment important is not any single model. It is the pace and breadth of innovation happening across the frontier at the same time.

For developers and enterprises, model choice is no longer a decision you make at the start of a project. It is becoming a continuous advantage. The best model for a coding agent today may not be the best model for research, customer service, or high-volume inference, and the right answer will keep changing as new models arrive. Microsoft Foundry is built for that reality.

Foundry brings together models from leading AI providers in an open platform where teams can evaluate them against their own data and workloads, compare tradeoffs across quality, latency, and cost, and put the right models into production without rebuilding their AI strategy around a single provider. The arrival of the GPT-6 family and Claude Opus 5.5 expands that choice, giving teams more models to evaluate for their specific workloads alongside the broader portfolio already available in Foundry.

Build and operate voice agents with Foundry Agent Service

Voice is rapidly becoming a major way people interact with AI agents. Yet many voice experiences are still built by layering speech onto agents designed for text, requiring separate speech, orchestration, monitoring, and deployment components. With voice agents in Foundry Agent Service, voice becomes a native part of the agent foundation—built, deployed, observed, evaluated, and optimized through the same platform, API, and SDK as the rest of your Foundry agents.

Voice agents, now in public preview, are a new agent type supporting both prompt and hosted agents. Choose from industry-leading voice models— GPT Realtime, Azure Realtime, MAI and more—to balance latency, reasoning depth, and cost for each scenario, or bring your own. Models, tools, and deployment paths are designed for spoken interaction from the start: expressive voices, natural turn-taking, and graceful recovery when someone interrupts, across 80+ languages and 140+ locales. Teams that want a distinct identity can fine-tune custom speech for domain vocabulary, create a custom voice, or add a photo or video avatar for unique brand identity. Developers can reuse the tools, enterprise knowledge, and governance configured for their other Foundry agents, then deploy to web channels, Microsoft Teams, Teams Phone, and Twilio-based inbound and outbound telephony experiences.

The developer workflow extends across the tools teams already use:

AZD AI provides a repeatable, source-controlled workflow for configuring and deploying voice agents.

Foundry Toolkit in Visual Studio Code (coming soon) enables developers to create, run, speak with, and debug voice agents without leaving their development environment.

Voice-agent observability brings tracing, monitoring, transcripts, and voice-native evaluation to spoken interactions.

At Fashable, our mission is to make advanced AI accessible to brands and manufacturers of all sizes, regardless of their technical maturity. As we introduce new agentic capabilities, voice becomes an important part of that journey, enabling interactions that feel more natural, conversational, and accessible. People don’t think in prompts, they think in conversations, and using voice agents in Foundry with MAI-Voice helps bridge that gap.
—Orlando Ribas Fernandes, CEO, Fashable

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Build resilient hosted agents for long-running tasks

Real enterprise work does not always finish within a single request. A research task may span many sources, a report may require several tools and processing stages, and an agent may need to wait for external systems or human approval. Long-running resilience in Foundry Agent Service, now in public preview, lets the work of hosted agents continue after a request disconnects and recover when its hosting process stops unexpectedly.

Microsoft Agent Framework complements these capabilities with framework-level workflow state and checkpointing. When a resilient background workflow is interrupted, Agent Framework can resume from its latest durable checkpoint while Foundry preserves the hosted response.

Microsoft Agent Framework also adds Agent Channel for messaging integrations, AG-UI support for interactive applications, CodeAct and Hyperlight containers for isolated code execution, and episodic procedural memory to reuse successful task patterns. Read more about the latest updates in Microsoft Agent Framework.

To build and deploy these long-running agents, developers can use the Foundry Toolkit for Visual Studio Code, which supports hosted agents and Microsoft Agent Framework. The new Foundry dev pack simplifies onboarding by bringing the Foundry developer toolchain together in one installer.

Read more about the latest updates in Microsoft Agent Framework

Give agents only what they need, when they need it

Enterprise agents don’t need every document, tool, and procedure in every interaction. Loading everything upfront adds latency and cost, and can make behavior harder to predict. Agents should be able to find and use the resources they need as the work unfolds.

Toolboxes give agents on-demand access to tools and reusable procedures, with opt-in discovery and tool-level guardrails. Teams can make capabilities available without loading them into every call. Toolboxes are already generally available for hosted agents and are now expanding to prompt agents in public preview.

Tool search in Toolboxes, now generally available, lets agents find the right tool without loading the full catalog of tool definitions upfront. In an internal evaluation using a public benchmark of more than 44,000 tools and 7,000 queries, tool search reduced input-token consumption by more than 60% for a 50-tool toolbox and by over 97% for a 1,000-tool toolbox. These results are compared with a prompt-cached baseline that loads the full tool catalog upfront.

Agent-to-Agent (A2A), now generally available, lets agents call other agents, including other Foundry agents, through an open, standardized protocol. Teams can connect agents without building custom point-to-point integrations, while centralized credentials and policy enforcement help maintain security and governance as those systems grow.

Routines in Foundry Agent Service, now generally available, let teams run automated agents on a schedule, after a delay, or in response to an event. Teams no longer need to build their own schedulers, queues, and identity plumbing just to start an agent at the right time.

Together, these capabilities help teams reduce unnecessary context and custom infrastructure, with more control over what agents can access and when they run.

Turn production evidence into continuous improvement

Getting an agent into production is just the beginning. As real users put it to work, teams need to understand what’s driving quality, latency, and cost, and which changes will improve performance without introducing regressions. That has often meant piecing together traces, dashboards, and ad hoc tests. Foundry brings those steps into a continuous improvement loop, helping teams turn production insights into measurable improvements: observe, understand, evaluate, optimize, validate, and repeat.

Insights in Foundry, now in public preview, helps teams understand what is happening in production. It analyzes production traces to surface recurring issues and ones teams didn’t know to look for. For each issue, it gathers the supporting evidence, points to the likely cause, and recommends what to do next, so teams know where to focus before a small problem becomes a widespread one.

Rubric evaluator, generally available later this month, helps teams define what good looks like once they know what to fix. It turns an agent’s prompts, traces, and requirements into clear success criteria that can be measured consistently.

Synthetic and traces to dataset generation, generally available later this month, builds the evaluation data to match those criteria. Traces to dataset generation draws on real production traffic, so tests reflect the scenarios customers actually encounter, including the ones Foundry insights flagged.

Agent optimizer in Foundry Agent Service, generally available later this month, puts those evaluations, datasets, and constraints to work. It tests changes across instructions, tools, skills, and model choice, and shows which changes actually improve results before anything ships.

Together, these capabilities close the loop from production back to production. The improved agent returns to real traffic, where Foundry insights keep watching for what comes next, and each pass builds on the last so agents keep getting better the longer they run.

Agent optimizer in Foundry Agent Service turns evaluation insights into actionable datasets and optimization, reducing the manual effort of finding and fixing performance issues. That systematic loop aligns directly with NTT DATA’s AgentOps with Harness approach—a core element of our Smart AI Agent® concept—together moving agents from proof of concept to trusted production at scale.
—Takashi Okamoto, AI Technology Strategist, Global AI Office, NTT DATA Group Corporation

Govern AI agents with identity, lifecycle, and network controls

As agents take on more work, organizations need to manage them as enterprise assets, with identities, owners, policies, lifecycle controls, and evidence of what they did.

Foundry agents now honor governance operations originating in Microsoft Entra and Agent 365. Actions such as blocking, disabling, deleting, restoring, or assigning a new owner are enforced by the Foundry runtime rather than recorded only in a directory.

Network egress controls govern the outbound destinations a hosted agent can access. Teams can define allow and deny rules, modify outbound headers, or redirect requests before traffic leaves the Foundry-managed sandbox. An audit mode enables teams to evaluate policies before enforcement, with each decision emitted to Azure Application insights.

Coming soon in October, Microsoft Foundry is expanding its integration with Azure API Management with preview support for the new AI Gateway tier, helping organizations bring centralized governance into the Foundry developer experience. With this integration, organizations can adopt a hub-and-spoke approach where platform teams centrally govern model access through AI Gateway and make approved models available to developers through Admin Connected Models. Developers can then use these governed models across familiar Foundry experiences for model discovery, experimentation, agent development, and evaluation. Developers will also be able to connect to models across other resources or outside of Foundry directly from the playground. Existing Foundry integration with traditional Azure API Management tiers will remain supported.

Governing agents as enterprise assets also means proving they meet the organization’s safety and policy requirements. The new open-source run-assert-eval Skill brings that verification into a single workflow.

It runs three of Microsoft’s open-source tools in sequence:

Clarity surfaces risks developers may have missed.

ASSERT turns requirements into measurable evaluations.

Agent Control Specification (ACS) applies targeted runtime controls where an agent falls short.

The Skill then re-runs the evaluation to confirm the agent improved without restricting legitimate behavior, giving teams evidence that each policy is working as intended.

Get started with Microsoft Foundry

The latest capabilities in Microsoft Foundry give developers a flexible path from a simple prompt to a production agent, without requiring teams to assemble disconnected development tools, runtimes, gateways, schedulers, and governance controls.

Start building: Head to ai.azure.com to build your next agent in Microsoft Foundry. Choose a model, define the agent’s instructions, and connect the knowledge and tools it needs.

Learn with the community: Join Model Mondays and Foundry Fridays for demos and practical guidance. Next up: Agent Optimizer and insights in Foundry Session

Join us at Microsoft Ignite: Visit Microsoft Ignite to explore sessions on AI and agents and opportunities to connect with experts. 

Start building and optimizing in Microsoft Foundry today

Begin here

The post Ship agents faster with expanded model choice, voice agents, and continuous optimization appeared first on Microsoft Azure Blog.
Quelle: Azure

Enhancing Microsoft Azure Virtual Machine lifecycle

Azure continuously advances through new infrastructure generations, platform capabilities, services, and innovations that lead the industry in performance, security, reliability, and efficiency. Our Virtual Machine (VM) Lifecycle policy guides how we manage these transitions, giving Azure customers transparency, predictability, and guidance to plan for and execute technology changes with confidence. Our goal is to help every organization plan and navigate these modernization steps in line with Azure’s latest innovations and ongoing platform investments.

Learn more about virtual machines in Azure

To give you access to the most advanced cloud and AI infrastructure, deployed on the most sophisticated silicon and hardware, the Azure Virtual Machine lifecycle is built around three customer outcomes:

Transparency to easily understand the lifecycle status of Azure technologies, Microsoft’s level of ongoing investment, and the recommended path forward as new innovations become available.

Predictability to plan against defined lifecycle stages, understand what to expect at each stage, and advance notice as technologies progress through their lifecycle.

Guidance to help you modernize and adopt newer technologies rapidly and with confidence, along with AI-led tooling to accelerate workload transitions and recommendations.

This lifecycle provides a shared taxonomy, common stages, and consistent commitments for how we communicate technology evolution.

Azure General Purpose, Memory Optimized, Compute Optimized, and Storage Optimized VMs are the first VM families covered by this policy.

The lifecycle stages, spanning Current, Extended, End of Life, and Retired, are defined below, with dedicated Microsoft investment levels, regional and quota availability, applicable purchasing options, and pricing. The policy establishes clear lifecycle stages, expected customer experiences, and Microsoft’s commitments at each stage so customers can confidently plan, deploy, and modernize workloads over time.

Azure Virtual Machine Lifecycle PolicyStageDescriptionCurrentCustomer recommendation: Customers can confidently deploy new workloads, expand existing deployments, and optimize their Azure investments using VMs in the Current stage of the lifecycle. These VMs are specifically recommended for new deployments. Microsoft investment: During this stage, products receive standard maintenance and support.Availability: Current VM series are generally available to customers and have broad availability across Azure regions globally.Purchasing options and pricing: Pay-as-you-go pricing and Azure Savings Plans. Azure Reserved VM Instances may also be offered. ExtendedCustomer recommendation: Azure VMs in the Extended stage remain supported for existing workloads; however, customers should begin evaluating and planning a transition to VMs in the Current stage.Microsoft investment: During this stage, products continue to receive standard maintenance and support.Availability: VMs in the Extended stage remain generally available across multiple regions. However, VMs in this stage may be subject to quota restrictions. Purchasing options and pricing: Pay-as-you-go pricing and Azure Savings Plans. Azure Reserved VM Instances may also be offered. Changes to purchasing options and pricing are possible.End of LifeCustomer recommendation: VMs enter the End of Life stage when their retirement is formally announced. These VMs are based on older platform generations and do not benefit from the latest advancements in performance, security, reliability, and efficiency. Customers should actively plan and transition the workloads to VMs in the Current or Extended stages.Microsoft investment: During this stage, products continue to receive standard maintenance and support. In addition, Azure will provide notifications, migration tooling, and guidance to help customers move to newer versions.Availability: VMs in the End of Life stage remain available to existing customers in currently supported regions and within their existing quota allocations, subject to available capacity. New deployments and quota requests are subject to restriction. Microsoft will deploy new workload placement capabilities for VMs in the End of Life stage. While customers may experience minor workload performance variations in rare scenarios, existing Azure Virtual Machines SLAs will be met. These capabilities allow Microsoft to improve capacity availability for VMs in the End of Life stage as well as help support continued investments in modern hardware, new capabilities, and global scale.Purchasing options and pricing: Pay-as-you-go pricing and Azure Savings Plans remain available, while Reserved Instances may no longer be offered. When VMs enter the End of Life stage, customers should expect changes to pricing and availability.RetiredCustomer recommendation: Retired VMs are no longer available and can no longer be provisioned. Customer modernization should be complete, with workloads now deployed to VMs in the Current or Extended stages.Microsoft investment: VMs in a Retired series are no longer covered by a service level agreement (SLA) and are not eligible for Microsoft support.Availability: New VM creation is no longer available, and existing VMs will be deallocated.Purchasing options and pricing: VMs in a retired series are no longer available for purchase.

Note: Lifecycle details described in this policy represent general guidance and may be subject to product-specific, regional, or operational exceptions.

Platform experiences and tools to help simplify transitions

Microsoft is committed to helping you modernize your workload portfolio with the greatest possible speed, confidence, and simplicity. Azure Advisor and Azure Service Health give you clear insight into your subscriptions and resources—helping you discover upcoming VM retirements, identify affected resources, and track your modernization progress with recommended actions built in. Beyond this, Microsoft is investing in intelligent, AI-augmented tools designed to apply lifecycle guidance across your entire workload portfolio, further reducing friction as you modernize.

Microsoft is committed to helping you navigate these infrastructure transitions and take advantage of the next wave of innovation. As Azure continues to advance, our commitment is to make change predictable, transparent, and supported through clear lifecycle guidance, early visibility, and practical help to modernize with confidence. This policy is an important step toward making modernization easier to plan, simpler to execute, and more valuable for every Azure customer.

For more information about the Azure Virtual Machines lifecycle, visit the VM lifecycle overview page.

Azure Virtual Machines

Create and manage virtual machines

Get started

The post Enhancing Microsoft Azure Virtual Machine lifecycle appeared first on Microsoft Azure Blog.
Quelle: Azure

FabCon and SQLCon 2026 in Barcelona: Building the data foundation for Microsoft Copilot and agents

In this article

Enabling Frontier Transformation with Microsoft Copilot and Microsoft FabricThe next evolution of Power BI: Agentic app creationMove from idea to production faster with Fabric AppsBuilding an AI-ready data foundation with Microsoft FabricCreate and manage agents in FabricOperate Fabric with greater visibility and controlManage, optimize, and scale your database estate

One of the defining strengths of the Fabric and SQL communities is how openly people share what they are building and learning. This week, nearly 5,000 data professionals are coming together in Barcelona to do exactly that. Across more than 130 sessions, more than 10 tutorials, community meetups, and roundtable discussions, attendees will exchange practical insights and real-world experiences that others can apply in their own organizations.

The excitement in Barcelona mirrors the momentum we’re seeing throughout Microsoft’s data portfolio. Microsoft Fabric now supports more than 40,000 customers worldwide, and for decades Microsoft SQL Server has provided the backbone of enterprise workloads including more than 90% of the Fortune 500. Customers like Levi Strauss, H&M, and Thomson Reuters are using these capabilities to unify their data estates, ground AI in their business context, and scale while remaining governed and secure.

Today, we’re announcing new innovations across Microsoft Fabric and our database portfolio designed to help organizations power their Frontier Transformation, including deep integrations with the new Microsoft Copilot, agentic app development in Microsoft Power BI, end-to-end observability in Fabric, the database hub, and more.

Power your AI transformation with Microsoft Fabric

Enabling Frontier Transformation with Microsoft Copilot and Microsoft Fabric

Software development has changed dramatically. AI is no longer simply helping developers write code faster. Agents are beginning to work across the full development lifecycle, from planning and coding to testing and deployment.

The opportunity now is to bring that same transformation to the rest of the enterprise. But organizations need more than models and agents. They need trusted context: governed data, shared business definitions, operational knowledge, and the guardrails that help AI act reliably.

This is the foundation of Frontier Transformation: embedding AI into core business processes, grounded in an organization’s unique data, knowledge, and workflows. Microsoft is helping enable this transformation through Microsoft Copilot and Microsoft IQ, which connect AI to an organization’s knowledge, data, applications, and business context.

At the center of this system is Fabric IQ, a shared intelligence layer that connects enterprise data, business metrics, and operational context across the Microsoft ecosystem. By combining unified data from Microsoft OneLake, trusted metrics from Power BI semantic models, and operational context from ontologies and real-time intelligence, Fabric IQ gives people and agents a shared understanding of the business.

Powering the new Microsoft Copilot with trusted data from Fabric IQ

Millions of Microsoft 365 users rely on Microsoft Copilot every day to find information, create content, analyze data, and take action in the flow of work. With the introduction of the new Copilot last week, it’s evolving from a conversational assistant into a unified experience where people can assist, delegate, and even build. Home brings Chat and Cowork together, while Code now gives everyone ways to build their own solutions. As Copilot takes on increasingly sophisticated work, access to trusted business context becomes essential.

Today, we are excited to share we are bringing business context from Fabric IQ into Microsoft Copilot, grounding your work in a shared understanding of the business. Microsoft Copilot customers can now tap into AI-powered insights from Fabric as part of their Copilot experience, without additional AI token costs. Fabric IQ in Copilot Chat and Cowork is generally available today, with integration into the new Code experience coming soon through the Frontier program.

For Power BI customers, this semantic foundation is already in place. Business definitions, key metrics, and organizational knowledge captured in trusted Power BI semantic models and reports can now directly inform decisions and actions in Microsoft Copilot. This allows Copilot users to ask business questions and receive AI-powered insights grounded in the semantic data layer their organization already trusts.

As Bogdan Crivat highlights in his Bringing governed analytics into the flow of work blog, this is a key step toward conversational analytics that connects enterprise data, business context, and AI to help people make better decisions. Check out the following demo to see this in action:

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The next evolution of Power BI: Agentic app creation

With more than 425,000 customers across every country and industry, Power BI has helped millions of users turn their data into insights. Today, we are excited to announce the next evolution of Power BI: bringing agentic app creation to Microsoft Power BI Desktop.

Business intelligence has traditionally followed a familiar pattern: analysts modeled data, built reports, and published dashboards for others to consume. Copilot in Power BI has made this process more conversational, helping users explore data and create and refine reports using natural language. Now, AI is enabling users to go beyond uncovering insights to build tools, workflows, and applications directly from their data.

The new agentic app creation experience in Power BI Desktop takes this a step further. Starting with a trusted semantic model, users can describe the application they need, generate it using natural language, preview and edit it in real time, and publish it to Microsoft Fabric without starting from a blank canvas.

While Copilot in Power BI helps you analyze data and build reports, this new experience enables you to create purpose-built data applications. These applications can accept inputs, write back data, preserve shared state, and support operational workflows.

This experience uses our new Fabric Apps capabilities to provide each application with a SQL database in Fabric, authentication, and security. As an application grows, users can expand its functionality and hand it off to developers and IT teams without rebuilding it.

Watch the following demo to see the new experience in action:

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Importantly, this experience isn’t limited to Microsoft Fabric capacity customers. Apps in Power BI will be available in preview in the coming weeks to Power BI Pro and Power BI Premium Per User customers as well as Microsoft Fabric capacity customers. This means Power BI Pro and Premium Per User customers, at no additional cost, will also have access to Fabric Apps and Fabric Database capabilities—up to 1 GB per app—along with enterprise-grade security and scale for hosting. Fabric customers can then extend these apps with other Fabric workloads, creating richer applications on their existing data and services.

To learn more about this feature and other innovations coming to Power BI, read Mohammad Ali’s Power BI’s next chapter: The evolution of business intelligence blog.

Explore Microsoft Power BI features

Move from idea to production faster with Fabric Apps

AI can accelerate prototyping, but moving an application into production still requires teams to connect data, add business logic, manage infrastructure, and enforce governance. Fabric Apps closes this gap by giving developers a governed application layer on Microsoft Fabric.

Since the initial launch in June 2026, thousands of developers have used Fabric Apps to build AI-powered business applications, operational workflows, and custom experiences on governed data. Using the open-source Rayfin SDK and CLI, developers and coding agents can build application backends and deploy them to Fabric as Fabric Apps.

With the latest enhancements, developers can connect apps directly to Fabric warehouses, SQL databases, lakehouses, and Power BI semantic models without duplicating data, while preserving existing permissions and trusted business logic. New TypeScript backend functions, Secret Store, PostgreSQL support, private-by-default access, and built-in usage and performance metrics provide the services needed to take those apps into production.

Together, these capabilities give developers a faster path from idea to secure, governed, production-ready Fabric Apps while spending less time assembling infrastructure and more time building differentiated application experiences.

Check out what you can build with Rayfin:

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Learn more about Rayfin by reading Sachin Patney’s From prompt to production: What’s new in Fabric Apps blog.

Building an AI-ready data foundation with Microsoft Fabric

While Fabric IQ brings business context into Copilot, applications, and agents, that intelligence should first be created and maintained. Organizations need a foundation that can unify data across sources, transform and prepare it for analysis, and capture business meaning through semantic models and ontologies. Today’s Microsoft Fabric innovations make it easier to build this foundation from end to end.

Unify your data estate with Microsoft OneLake

As organizations scale AI, connecting data is no longer enough. Copilots and agents also need business context, including terminology, relationships, instructions, and domain knowledge, to deliver relevant answers and take informed action. Microsoft OneLake provides an open foundation for connecting data across clouds, applications, and platforms through mirroring and shortcuts.

Share governed data and context with IQ sharing

Today, we’re taking the next step with IQ sharing, now in preview. IQ sharing helps organizations securely share governed data and business context across teams, customers, partners, and ecosystems, making intelligence reusable beyond organizational boundaries. At launch, IQ sharing supports governed tables and files alongside Markdown agent instructions and RDF ontologies, with native support for Fabric IQ ontologies and Power BI semantic models on the roadmap.

EY, S&P Global, TomTom, Financial Fabric, and xMentium are already building integrations with IQ sharing. For example, TomTom is bringing its geospatial and transportation intelligence into Fabric, with available data products discoverable through the OneLake catalog.

Together, mirroring, shortcuts, and IQ sharing create an open data network that enables organizations to connect, access, and collaborate on governed data across teams, partners, and ecosystems. This extends OneLake beyond data integration to support reusable data products that power analytics and AI.

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Expanding the OneLake ecosystem

We’re also expanding the reach of that open data network with the preview of bidirectional integration with Salesforce Data Cloud 360, the general availability of Google BigQuery mirroring, and deeper integration with Microsoft Dynamics 365 Business Central. Now, Salesforce data becomes part of the unified data estate without moving or duplicating it, making it available across Fabric for analytics and AI, including as business context for Fabric data agents.

Additionally, we are rapidly growing the OneLake ecosystem with Atlan, dbt, and ClickHouse, making it easier to bring trusted business context to OneLake data, transform it using familiar developer workflows, and work with it from external analytical engines.

Together, these capabilities make it easier to work across platforms, tools, and clouds without duplicating data or building complex integrations. Learn more about all the innovation coming to Microsoft OneLake by reading Dipti Borkar’s What’s new in Microsoft OneLake and its rapidly growing ecosystem blog.

Get all your data in one place in Microsoft OneLake

Process and harmonize data more efficiently

Connecting data is only the first step. Organizations still need to prepare, transform, and operationalize data at scale. To help teams move faster from data to insight and action, we’re introducing data engineering agent in Microsoft Fabric, and new Copilot experiences in Fabric Real-Time Intelligence.

Delegate complex data engineering work to data engineering agents

As AI becomes part of the development process, data engineers are evolving from executing every task themselves to orchestrating intelligent systems. Fabric is taking the next step in that evolution with the data engineering agent, built on technology from Microsoft’s acquisition of Osmos earlier this year. Now in preview, the data engineering agent brings governed, autonomous execution to complex, long-running initiatives such as data platform migrations, lakehouse modernization, performance optimization, complex extracting, transforming, and loading (ETL), and data preparation.

Engineers define the desired outcome and establish guardrails. Within those boundaries, the agents then plan and execute the work autonomously, validate results and refine its approach, helping teams move complex data initiatives forward while keeping engineers in control.

Fabric data engineering agent is also designed for collaborative work that spans people and teams. Tasks inherit workspace permissions, enabling authorized team members to monitor progress, contribute context, respond to decisions, and work together on the same task.

And because data engineers work across multiple development environments, these capabilities extend across Fabric and developer tools, including GitHub Copilot, Microsoft Visual Studio Code, Codex, and Claude Code. Engineers can start, monitor, and steer the same work from the tools they already use without losing context or progress.

Learn more about the Fabric data engineering agent in Bogdan Crivat’s Bringing governed analytics into the flow of work blog.

Simplify working with real-time data with Copilot

Organizations increasingly need to act on live operational signals, not just historical reports. New Copilot capabilities in Real-Time Intelligence help teams understand, monitor, and manage real-time data using natural language. Users can now create Real-Time Dashboards by describing what they want to understand, while Copilot assists users with eventhouse management and administrative tasks such as creating tables, configuring policies, managing schema, and inspecting cluster state.

New schema recommendations and optimization capabilities further help organizations improve performance and reduce costs, while the operations agent accelerates troubleshooting with AI-powered root cause analysis and actionable recommendations. Learn more about Real-Time Intelligence innovations in Yitzhak Kesselman’s Trusted AI starts with Microsoft Fabric, Real-Time Intelligence, and IQ blog.

Curate context with Fabric IQ

With data unified and prepared, organizations need a way to capture the business meaning, relationships, rules, and operational context that AI depends on. Fabric IQ provides this shared intelligence layer, extending governed business context across Microsoft Copilot, Microsoft Foundry, GitHub Copilot, and custom applications to help agents reason over a common understanding of the business.

Accelerate ontology creation and governance

Today, we are making it easier to define and govern this context layer. We are introducing a new agentic experience to create ontologies from semantic models, OneLake data, and other context documents, reducing the effort required to capture business concepts and relationships.

You can define rules in natural language, connect them to ontology entities, properties, and relationships, and make them part of the shared context people and agents use to navigate business operations consistently. You can also carry Power BI measures into your ontology, allowing you to reuse these established metrics.

We’re also affirming our commitment to Apache Ossie (incubating), a community-led effort to establish a vendor-neutral standard for exchanging semantic metadata across analytics, AI, and BI platforms. Working with Snowflake and the broader industry, we’re helping make semantic context open and reusable across platforms.

Together, these capabilities make it easier to maintain shared business meaning and help agents reason over governed data with greater accuracy and consistency. Learn more about Fabric IQ in Yitzhak Kesselman’s Trusted AI starts with Microsoft Fabric, Real-Time Intelligence, and IQ blog.

Create and manage agents in Fabric

The value of a shared intelligence foundation comes when agents can use that context to deliver real outcomes. New enhancements across Fabric agents make it easier to build, govern, and operationalize AI experiences across Microsoft Fabric and other AI platforms.

We are deepening the integration between Fabric data agents and ontologies in Fabric IQ, enabling more accurate and explainable answers grounded in business concepts and relationships. The build agent with AI mode can now use semantic models, documentation, glossaries, and data dictionaries to generate richer data agent experiences with less manual configuration. Operations agents are adding pre-approved actions in preview and bringing root-cause analysis to general availability, helping teams investigate issues, identify likely causes, and automate repeatable responses while maintaining human oversight and control. Learn more about these updates by visiting Bogdan Crivat’s Bringing governed analytics into the flow of work blog, and Yitzhak Kesselman’s Trusted AI starts with Microsoft Fabric, Real-Time Intelligence, and IQ blog.

Operate Fabric with greater visibility and control

As organizations place more workloads on a unified data platform, operational maturity becomes as important as analytical capability. Teams need to understand what is happening across jobs, capacities, workspaces, and services—and resolve issues before they affect the business.

Introducing new observability capabilities in Microsoft Fabric

Observability in Fabric, now in preview, is a new set of platform capabilities designed to help organizations move from reactive troubleshooting to proactive operations. Spanning workspace monitoring, the monitor hub, and operations agents, these new observability capabilities provide a unified view of the Fabric estate, making it easier to detect issues early, investigate root causes with AI assistance, and manage operations from a single experience.

The new workspace monitoring experience allows you to consolidate telemetry in a single eventhouse for multiple workspaces, simplifying cross-workspace monitoring. You can even make the data available in other destinations with custom endpoints and control the exact retention rate and caching policy you need.

We’ve also enhanced the monitor hub in Fabric with deeper visibility into jobs, capacities, and workloads through built-in views, alerts, and AI-powered insights. New Activator-powered job alerts notify teams of job failures and successes, while a new capacity view helps monitor consumption and headroom. In addition, we’ve added new investigation capabilities to operations agents, helping data professionals and administrators diagnose issues faster by autonomously identifying root causes and recommended actions.

Together, these capabilities reduce the effort required to identify problems, improve reliability, and keep data and AI workloads running smoothly.

Check out the demo below to see observability in action:

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Pay only for what you consume with on-demand billing

Visibility is only part of the equation. Organizations also need flexible, predictable ways to align infrastructure costs with usage as data and AI workloads scale.

Building on Autoscale Billing for Spark, on-demand billing expands consumption-based billing across Fabric workloads, allowing you to pay only for the compute you use, automatically scaling resources up and down based on your demand. Fabric zero-provisioned adds to on-demand billing by allowing you to get started with Fabric and OneLake without an upfront capacity commitment.

To learn more about observability in Fabric, on-demand billing, and other innovation coming to the Fabric platform, read Kim Manis’s Build, deploy, and govern Microsoft Fabric at scale blog.

Manage, optimize, and scale your database estate

Building intelligent applications requires more than powerful AI models. Organizations also need databases that can scale with demand, tools to manage growing data estates, and intelligent operations that keep systems running reliably.

Today, we’re introducing new capabilities across Database Hub, Database Agents, and Microsoft Azure SQL Database that help organizations build, manage, and optimize the data foundation behind the next generation of intelligent applications.

Centrally manage your database estate with the Database Hub in Fabric and database agents

As developers build more applications and operational workloads move into Fabric, managing a growing database estate becomes just as important as building applications. Organizations need a unified way to monitor, govern, and optimize these databases.

Building on its introduction at FabCon & SQLCon Atlanta, Database Hub in Fabric is now in preview. It provides a centralized control plane for managing SQL Server, Microsoft Azure SQL, PostgreSQL, Azure Cosmos DB, and SQL database in Fabric. From a single experience, administrators can monitor health, assess risk, enforce governance, and gain visibility across their entire database estate.

Additionally, we are introducing database agents for SQL and PostgreSQL on Azure, which will soon be available in preview. These AI-powered specialist agents, accessible in the Database Hub in Fabric and VS Code, continuously observe and analyze database signals, helping administrators investigate issues, understand performance bottlenecks, identify optimization opportunities, and accelerate troubleshooting. By bringing AI-assisted operations directly into a unified management experience, teams can move from insights to action faster while improving reliability, performance, and security.

Together, these innovations provide the operational foundation for intelligent applications across Microsoft, helping organizations manage their data estate with the same simplicity, scale, and intelligence that powers analytics and AI in Microsoft Fabric.

Learn more about the Database Hub and database agents in Shireesh Thota’s Cononnecting apps, databases, and AI on one foundation & SQLCon blog.

Bringing greater scale, efficiency, and AI innovation to Azure SQL Database Hyperscale

Intelligent applications place new demands on databases, requiring greater scale, efficiency, and built-in support for AI-powered scenarios. We’re introducing new innovations in Azure SQL Database Hyperscale designed to help developers reduce costs, scale demanding applications, and build AI-powered experiences using familiar SQL tools.

Serverless auto-pause for Azure SQL Database Hyperscale, now in preview, automatically pauses compute during periods of inactivity and resumes when workloads return, helping reduce costs for development, test, and intermittent workloads. We’re also increasing elastic pool density to support up to 50 databases per pool and making 192 vCore compute for Azure SQL Database Hyperscale generally available, enabling greater scale and concurrency for mission-critical applications.

In addition, we’re announcing the general availability of DiskANN vector indexes for Azure SQL Database Hyperscale, Azure SQL Managed Instance, and SQL database in Fabric, bringing high-performance vector search directly into the database engine. Developers can build recommendation engines, semantic search, and retrieval-augmented generation (RAG) applications without moving data to a separate vector store.

Enable sovereign data across customer-controlled environments

Organizations need the flexibility to run data platforms where performance, regulatory, and operational requirements demand. Microsoft is expanding where customers can run Azure and SQL Server capabilities, enabling modern workloads across sovereign, customer-controlled data estates—whether on the cloud, edge, or in disconnected environments.

SQL Server on Azure Local is now generally available, bringing SQL Server and Azure capabilities to local environments. Organizations can run mission-critical workloads closer to their applications and operations for low-latency, high-performance access to data while maintaining control over where data resides. In addition, SQL Server on Azure Local Disconnected Operations (ALDO) is also now generally available, enabling the same platform and experience in environments where cloud connectivity is unavailable, restricted, or intentionally disconnected.

Whether supporting regulated industries, operating at the edge, or running business-critical systems in disconnected environments, customers can now bring modern Azure and database capabilities closer to their data while maintaining the performance, control, and flexibility their workloads require.

Finally, Microsoft Fabric is expanding to Microsoft 365 Government Community Cloud High (GCC High) customers, supporting organizations that require United States sovereign cloud environments and compliance.

Learn more about all the innovation we are bringing to our database offerings by reading Shireesh Thota’s Connecting apps, databases, and AI on one foundation blog.

Discover more Fabric and Azure Database innovation

AI transformation will not be defined by how many agents organizations create, but by how effectively those agents understand the business and work together to deliver outcomes. The organizations that build a trusted, connected data foundation now will be best positioned to lead.

For a deeper look at the updates above and to see what else is new this month, visit the Fabric September 2026 Feature summary blog, the Power BI September 2026 feature summary blog, and the latest posts on the Fabric Updates channel and the Azure Data Tech Community blog channel.

See what’s next at Microsoft Ignite

Join Microsoft Ignite in San Francisco, November 17–20, to learn directly from experts, build practical skills, and explore what’s next in AI and cloud. Choose sessions aligned to your priorities, with new content and experiences added regularly. Register now.

Explore additional resources for Microsoft Fabric

Sign up for the Fabric free trial.View the updated Fabric Roadmap.Try the Microsoft Fabric SKU Estimator.Visit the Fabric website.Join the Fabric community.Read other in-depth, technical blogs on the Microsoft Fabric Updates Blog.

Read additional blogs by industry-leading partners

Emergent Software: Microsoft IQ Explained: How Microsoft Is Building Context for AI Agents

Acuvate: Microsoft Fabric IQ Ontology for Enterprise AI Agents

Acuvate: Scaling Enterprise AI: Data, Governance, Real-Time Intelligence & More

Bismart: Fabric IQ in Microsoft Fabric: Semantic Layer for Artificial Intelligence

Element61: Fabric IQ: When your Data needs to speak Business

Get started with Microsoft Fabric

The post FabCon and SQLCon 2026 in Barcelona: Building the data foundation for Microsoft Copilot and agents appeared first on Microsoft Azure Blog.
Quelle: Azure

Claude Opus 5.5 comes to Microsoft Foundry for long-running coding and knowledge work

AI models are increasingly taking on work that extends far beyond a single prompt: building a feature across a codebase, investigating a complex issue, synthesizing hundreds of pages of information, or working through a multi-step business process.

As that work gets longer, raw intelligence is only part of what matters. The model also needs to stay focused, make good decisions along the way, communicate what it is doing, and produce work that people can quickly review and use. Today, Claude Opus 5.5 is available in Microsoft Foundry, bringing Anthropic’s most capable Opus model to developers and enterprises building AI applications and agents.

Claude Opus 5.5 is designed for everyday complex work. It advances Opus 5 across agentic coding, knowledge work, and long-running tasks while making it easier for people to understand what the model did, what it found, and what it needs next. Claude Opus 5.5 also does more with fewer tokens. Lower per-token prices and much cheaper cache reads stack on top of the efficiency gains.

Built for work that takes time

Writing a function is one thing. Building a feature that touches multiple services, tracing a production issue across a large repository, or carrying a task from investigation through implementation and validation is something else entirely. Claude Opus 5.5 is designed for these longer-running workflows.

For software development, it can work through long-running coding tasks such as building features across a codebase, debugging, refactoring, and reviewing code. It finds the root cause before changing anything, checks its work as it goes, and explains its changes in plain language, so engineers can review and trust them quickly.

That combination becomes particularly valuable when developers use models through agentic coding environments, where a session may involve dozens of steps and run for an extended period of time. The same applies beyond software development.

For knowledge workers, Claude Opus 5.5 can bring together information from multiple sources, work through long documents and spreadsheets, perform analysis, and help create artifacts such as memos, reports, and presentations. Compared with Opus 5, it produces outputs that require less editing before they are ready to share.

An AI model that communicates more like a teammate

As agents take on more autonomous work, another challenge emerges: keeping the human in the loop without overwhelming them.

An agent that performs 50 steps should not require someone to inspect 50 steps to understand whether the work was successful. Claude Opus 5.5 introduces improvements to agentic communication designed to make long-running work easier to follow. As it works, the model can surface the information that matters most:

What it did

What it found

What decisions it made

Where it needs input from the user

What happened at the end of a long-running task

The goal is simple: spend less time decoding what the model did and more time using the result. This matters particularly for enterprise agents, where users need to understand not only the final answer but also when an agent needs clarification, encounters a constraint, or reaches a decision point that requires human judgment.

Adpative thinking

Claude Opus 5.5 uses adaptive thinking, automatically determining how much reasoning a task requires. Rather than turning thinking on or off or manually specifying a thinking-token budget, developers use effort to influence how much work the model should put into a request. This allows the model to adapt its reasoning to the task at hand—from relatively straightforward requests to complex problems that require deeper analysis.

For developers building agents, this can reduce the amount of application logic needed to decide when and how a model should reason.

Designed for long-running agent architectures

Long-running agents create challenges beyond model intelligence. Conversations can exceed context limits. Tools available to an agent can change. Applications may need to compact earlier context while preserving the model’s understanding of the work already completed.

Alongside Claude Opus 5.5, Anthropic is introducing beta API capabilities designed for these scenarios, including asynchronous compaction, keep-tail compaction, and changing tools during a conversation while preserving thinking and prompt caching. These capabilities can help agent developers maintain continuity across longer tasks without rebuilding the state of the application every time context or available tools change.

Combined with Microsoft Foundry, developers can use Claude Opus 5.5 as part of broader agent systems that connect models with enterprise data, tools, evaluation, and operational workflows.

Expanded safeguards for more capable models

As model capabilities increase, Anthropic is also expanding the safeguards applied to Claude Opus 5.5.

Claude Opus 5.5 is the first Opus model to use safety classifiers like those introduced with Claude Fable 5.1 in areas including cybersecurity, biology, AI development, and distillation.

For common developer, educational, and knowledge-work scenarios, customers can continue using the model for tasks such as identifying software vulnerabilities or learning about biological concepts. Certain requests that Anthropic identifies as higher-risk or dual-use may be handled by another Claude model with the appropriate safeguards.

This reflects an increasingly important part of deploying more capable models: advancing what models can do while applying safeguards appropriate to the capabilities they introduce.

Pricing

ModelDeployment OffersInput/M TokensOutput/M TokensAvailabilityClaude Opus 5.5Global Standard, US DataZone$4Cache Hit – $0.20Cache Write – $5Cache Write (1 hr) – $8$20GA, Hosted on AzureClaude Opus 5.5 (Long Context)Global Standard, US DataZone$4Cache Hit – $0.20Cache Write – $5Cache Write (1 hr) – $8$20GA, Hosted on Azure

Build with Claude Opus 5.5 in Microsoft Foundry

Choosing a model is only the beginning of putting AI into production. Microsoft Foundry gives developers a unified place to discover models, build and evaluate AI applications and agents, connect them with enterprise data and tools, and operate those systems in production. As models become capable of taking on more complete units of work, the question is shifting from Can the model answer this prompt? to Can I trust it to carry the work forward? Claude Opus 5.5 represents another step in that direction: stronger performance on complex work, more adaptive reasoning, and clearer communication between people and the AI systems working alongside them.

Claude Opus 5.5 is available today in Microsoft Foundry.

Updated Sep 22, 2026

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Quelle: Azure