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.

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.

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.

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.

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.

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 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.