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What is Microsoft Foundry?

Read this first. It frames why the platform exists before you start writing code in the labs.

Microsoft Foundry (Azure AI Foundry) is a unified Azure platform-as-a-service for enterprise AI — it brings models, agents, knowledge, and tools under a single management surface, with tracing, evaluation, guardrails, and fine-tuning built in.

Instead of stitching together separate services for inference, retrieval, agent orchestration, and monitoring, Foundry unifies them under one Azure resource provider namespace with a single RBAC / networking / policy surface.

Microsoft Foundry — one unified platform


Why a unified platform

Building production AI used to mean assembling a zoo of services — one for model hosting, another for vector search, a third for tracing, plus bespoke glue for agents and guardrails. Each had its own auth, its own SKUs, its own portal.

Foundry collapses that into one platform:

Capability What you get Workshop module
Models GPT-4.1, o-series reasoning, embeddings, OSS models, deployed in your project M1 · First inference
Agents Versioned prompt agents invoked via the Responses API M2 · Your first agent
Tools Code Interpreter, custom functions, an MCP tool catalog (1,400+ tools) M3 · Tools, M5 · MCP
Knowledge Foundry IQ knowledge bases over Azure AI Search, with citations M4 · Grounding/RAG
Memory Cross-turn context that adapts to the user M6 · Agent memory
Evaluation Quality, agent-specific, and custom evaluators M9 · Evaluation
Observability OpenTelemetry tracing → Application Insights M10 · Observability
Safety Prompt Shields, PII detection, blocklists, red-teaming M11 · Guardrails, M12 · Red teaming

Everything below those capabilities — RBAC, networking, Azure Policy, cost management — is shared, so governance is set once and applies everywhere.


The two portals

Foundry ships two web portals; know which one you're in:

  • Microsoft Foundry (new) — the streamlined experience for building and operating multi-agent applications. Only Foundry projects are visible here. This is where most of this workshop's portal references point.
  • Microsoft Foundry (classic) — use when you work across multiple resource types: Azure OpenAI resources, hub-based projects, and older project shapes.

Three areas of the new portal

  1. Home — project switcher and your resource boundaries at a glance.
  2. Discover — a "Netflix-style" catalog of models and agents across providers (Azure OpenAI, OSS, partner models). Browse, compare, and deploy.
  3. Build — the developer control plane: create projects, deploy and test models in playgrounds, define agents and workflows, and launch fine-tunes.

You'll mostly live in code

This is a coding workshop. The portal is where you create a project and deploy a model (a few clicks, covered in Setup); everything after that happens through the SDK in the lab notebooks.


What makes it "enterprise-ready"

  • One RBAC surface — grant access to a project, not to a dozen scattered resources.
  • Networking & Azure Policy — private endpoints and policy guardrails apply across models and agents uniformly.
  • Built-in observability & evaluation — measure quality before you ship and trace behavior after, without bolting on extra infrastructure.
  • Open protocols — first-class MCP and A2A support with full auth, plus an AI gateway integration.
  • Fleet management — register agents (even from other clouds), get health alerts, and manage 100% of your AI assets in one Operate view.

Where this fits

The rest of the Platform section explains how projects and the control plane are organized:

Then the Labs put the platform through its paces, end to end.

→ Next: Architecture & projects


Acknowledgement

Distilled from the awesome-foundry-nextgen enterprise lab series (areas 00–03), simplified for a single-project coding workshop.