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πŸ€– Azure AI Foundry + Hosted Agents

Track Type: Skill Track β€” Deep Technical
Target Audience: AI Solution Architects, Cloud Architects, Principal Engineers
Prerequisites: AZ-900 or equivalent Azure exposure; Python or PowerShell comfort


What You'll Build

Production-grade AI architectures grounded in real enterprise constraints. Every challenge starts from a customer scenario β€” the kind you'll encounter in actual customer engagements.


Platform Context (2025)​

Microsoft rebranded Azure AI Studio β†’ Azure AI Foundry β†’ Microsoft Foundry (2025). The platform unifies:

ComponentRole
Foundry Portal (ai.azure.com)Unified project hub
Foundry ResourceSingle account + projects (replaces Hub + AOAI + AI Services)
Agent ServiceThree agent types: Prompt, Workflow, Hosted
Model Catalog1,900+ models from Microsoft, OpenAI, Meta, Mistral, Hugging Face
Tool Ecosystem1,400+ MCP connectors, Azure Search, Logic Apps, Functions
Evaluation SDKGroundedness, coherence, fluency, safety scoring
ObservabilityOpenTelemetry traces, dashboards, Azure Monitor integration

The Three Agent Types​

β”Œβ”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”
β”‚ Azure AI Agent Service β”‚
β”œβ”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”¬β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”¬β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€
β”‚ Prompt Agent β”‚ Workflow Agent β”‚ Hosted Agent β”‚
β”‚ (No-code) β”‚ (YAML/Visual) β”‚ (Container/Code) β”‚
β”‚ β”‚ [Preview] β”‚ [Preview] β”‚
β”œβ”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”Όβ”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”Όβ”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€
β”‚ Chat UI β”‚ Multi-step flows β”‚ Full code control β”‚
β”‚ Simple Q&A β”‚ Conditional DAGs β”‚ BYO framework (LangGraph) β”‚
β”‚ 5-min deploy β”‚ Visual designer β”‚ Micro-VM isolation β”‚
β”‚ β”‚ β”‚ <1s cold start β”‚
β”‚ β”‚ β”‚ $0 idle cost β”‚
β””β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”΄β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”΄β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”˜

Hosted Agents β€” Architecture Deep Dive​

Hosted Agents are the enterprise-grade, code-first option. Key facts every architect must know:

  • Isolation: Each agent runs in a Micro-VM (gVisor-based) β€” process-level isolation, not shared container
  • Lifecycle: Cold start < 1 second; $0 idle cost; scales to zero automatically
  • Frameworks: LangGraph, Azure Agent Framework, Semantic Kernel β€” bring any Python agent
  • Network: Supports BYO VNet (Standard mode) β€” private endpoints, NSG integration
  • Identity: Every agent gets an Entra Agent ID (managed identity) β€” no passwords, full RBAC
  • API Version: Build on Responses API (v2) β€” the classic Assistants API (v1) retires March 2027
  • SDK: azure-ai-projects 2.x β€” unified client, single project endpoint

Deployment Modes: Critical Enterprise Decision​

ModeStorageNetworkingUse Case
BasicMicrosoft managesPublicDev/test only
StandardCustomer BYO (Storage + Key Vault + Search)Private endpoints availableAll enterprise workloads
Always Use Standard Mode for Enterprise

Basic mode gives Microsoft access to your conversation data and artifacts. Any customer with data residency, HIPAA, PCI, or EU AI Act requirements must use Standard mode.


Learning Path (14 Modules)​

#ModuleTypeTime
1Platform Architecture & Resource ModelConcept45 min
2Agent Service FundamentalsLab60 min
3First Hosted Agent (LangGraph)Lab90 min
4VNet Isolation & Private EndpointsLab90 min
5Entra Agent ID & RBACLab60 min
6Evaluation SDK & GroundednessLab90 min
7Content Safety IntegrationLab60 min
8Multi-Agent OrchestrationLab120 min
9MCP Tools & External ConnectorsLab90 min
10OpenTelemetry & ObservabilityLab90 min
11Standard Mode Enterprise SetupLab120 min
12Production TroubleshootingLab90 min
13Agent Publishing (Copilot Studio / Teams)Lab60 min
14Cost Optimization & ScalingConcept45 min

Challenges (Scenario-Based Labs)​

All labs are based on real enterprise scenarios:

ChallengeScenarioDomain
1 β€” BYO VNet HealthcarePatient data can't leave hospital VNetHealthcare / Data Residency
2 β€” Hallucination in ProductionAgent returns wrong answers 20% of the timeEvaluation / Quality
3 β€” Entra Agent ID SetupStandard mode with managed identity + RBACSecurity / Identity
4 β€” Multi-Agent Claims SystemBank security team reviewing AI architectureFinancial / Multi-Agent
5 β€” Hosted Agent at ScaleWorks locally, fails at 500 concurrent usersProduction / Troubleshooting

Key Resources​