Weekly Azure Roundup: Fabric SQL, OpenTelemetry, and Agent Ops
Recent Azure news includes new guides and updates for data platforms, security, workflow automation, and migration tools. Azure is continuing to add support for industry standards, integrate closely with Fabric and Databricks, provide Logic Apps and infrastructure enhancements, and improve compliance, networking, and platform reliability.
Microsoft Fabric: Unified Data, Governance, and AI-Ready SQL
Fabric’s new SQL Database is SaaS-native, exposing operational tables as Delta for instant analytics in OneLake. Enhanced Copilot features now in the SQL endpoint and Query Editor let you run queries in plain English and troubleshoot schemas. The OneLake Catalog centralizes data discovery, while sensitivity labels and other enterprise options automate regulatory compliance. New CI/CD features (SqlPackage, Terraform, CLI) promote repeatable deployments. SQLCon and FabCon hype the growing ecosystem through technical deep dives.
- SQL Database in Microsoft Fabric: SaaS-Native, AI-Ready Platform
- OneLake Catalog: Unified Data Discovery and Governance in Microsoft Fabric
- Automating Data Governance in Microsoft Fabric with Default Domain Labels
- Five Reasons to Attend SQLCon: A Deep Dive Into SQL Server, Azure SQL, and Microsoft Fabric
Cloud Observability and OpenTelemetry: From SRE Automation to Migration Guidance
Application Insights SDK 3.x for .NET now makes it easier to use OpenTelemetry, helping with observability in both legacy and new apps. The Azure SRE Agent with Model Context Protocol (MCP) keeps building agent-based automation for Databricks compliance and incident response. New SCOM-to-Azure Monitor migration tools create compatible analysis reports and ARM templates, supporting the move to more automated, modern monitoring.
- Application Insights SDK 3.x for .NET: Easier Migration to OpenTelemetry
- Automate Databricks Compliance and Incident Response with Azure SRE Agent and Model Context Protocol
- Azure WAF Compliance with MCP-Driven SRE Agent
- Accelerating SCOM to Azure Monitor Migrations with Automated Analysis and ARM Template Generation
Azure Data Engineering: Cosmos DB, BizTalk Migration, Logic Apps Hybrid
A new Pantone case study details an AI agent app running on Cosmos DB, leveraging vector search and orchestration for chatbot scalability. The BizTalk Migration Starter toolkit helps teams move from legacy BizTalk to Logic Apps. New Logic Apps features (e.g., Arc-enabled AKS, Jumpstart templates) provide hybrid and multi-cloud deployment paths, streamlining a broad range of operations.
- The Data Behind Pantone's Agentic AI: Building on Azure Cosmos DB
- BizTalk Migration Starter: Open Source Toolkit for Migrating BizTalk Applications to Azure Logic Apps
- Deploying Hybrid Logic Apps with Azure Arc on AKS Using Jumpstart Templates
Agentic Cloud Operations and Azure Copilot
Azure Copilot is rolling out production-ready agent-based cloud management, moving beyond previous automation to centralize resource discovery, enforce policy, and automate compliance—all through a user-friendly portal and with RBAC and BYOS flexibility.
AKS Networking and Cloud Native Security
AKS upgrades now bring nftables support (for scaling and Project Calico integration) and confidential VMs on Azure Government Cloud, improving security for zero-trust and regulated scenarios.
- Scaling AKS Networking with nftables and Project Calico
- DCasv6 and ECasv6 Confidential Virtual Machines in Azure Government Cloud
Azure Monitor and Observability Pipeline
Azure Monitor introduces new pipeline transformation features and AI-based workflows for App Service, supporting web agent hosting, OpenAI integration, and improved operations.
- Public Preview: Azure Monitor Pipeline Transformations
- From Local MCP Server to Hosted Web Agent: AI-Powered App Service Observability on Azure
Azure Data Studio Retirement and VS Code Migration
Azure Data Studio will reach end of life on February 28. Guidance now explains SQL developer migration to the VS Code MSSQL Extension, helping teams retain backup and workflow tools.
Azure Virtual Desktop and Networking Policy Changes
The “Default Outbound Access” feature in Azure networking will be retired for new VNets, requiring users to define NAT and outbound policies for Azure Virtual Desktop deployments. Updated troubleshooting for SSO (macOS and Windows 11 25H2) and RDP client connection issues is covered.
- Azure Network Changes: Default Outbound Access Removal and Implications for Azure Virtual Desktop
- SSO Issues on Azure Virtual Desktop for macOS Clients After Windows 11 25H2 Update
- Troubleshooting AVD Client Connection Issues in Windows App vs Web Client
Azure Platform Updates
This week’s Azure Update details further modernization improvements: AKS now supports Kubernetes 1.34, additional disk backup, SQL secondary replicas, wider AI/Databricks support, the Thailand South region, and Entra identity updates—contributing to platform reliability and regional extension.
Other Azure News
Azure Developer CLI (azd) now supports deployment slots for App Service, making repeatable deployments easier and boosting productivity. CLI reliability updates have also rolled out.
- Deploy to Azure App Service Deployment Slots with azd Recent compliance automation (manual update for Data Gateway, new FinOps Toolkit, Sovereign and banking landing zone architectures) helps organizations streamline governance and deployment across regulated industries.
- Manual Update Feature for On-Premises Data Gateway (Public Preview)
- What’s New in FinOps Toolkit 13: January 2026 Feature Updates
- Deploy VMs on Azure Local with Portal, CLI & Bicep (IaC)
- Sovereign Landing Zones for Microsoft Azure: Architecture and Compliance Explained
- Azure Landing Zone for Indian Banks: Regulatory-Ready Architecture and Compliance Modern SharePoint architecture guidance is now available, carrying forward best practices for governance automation, Microsoft 365 integration, and secure, scalable sites.
- Modern SharePoint Architecture: Best Practices for Scalable Intranets in 2026 Microsoft is publishing new work on using high-temperature superconductors to increase datacenter energy efficiency—adding to ongoing initiatives for energy savings as the platform scales.
- How High-Temperature Superconductors Could Revolutionize Power Delivery in Microsoft Datacenters Guidance is out for addressing webhook authentication issues with Azure Event Grid, ACS, and Dynamics 365, supporting secure integration and event management.
- Resolving Azure Event Grid Entra Authentication Issues for ACS and Dynamics 365 Webhooks