Product Updates

Foundry routines are now generally available, and GPT-6 and Claude Opus 5.5 have arrived in Foundry alongside new agent tooling and Container Apps Sandboxes. On the data side, SQL Server on Azure Local is now GA, Azure SQL adds vector indexes, SQL Migration Agent Skills speed up moves to Azure, and Azure HorizonDB is in preview. GitHub Copilot adds sandboxing, computer use and new models. Plus: Sovereign Cloud updates, a new VM lifecycle policy, and Azure Functions retirements starting November 10.

Partner Enablement and Go-to-Market

Enrollment is now open for the Frontier Partner specialization, and the Digital Sovereignty specialization has a simpler Partner Center flow. New guidance helps you choose between Document Intelligence and Content Understanding, and Foundry Dev Pack sets up a full Foundry workstation with one command. A new GitHub on Azure guide helps CSP partners provision and configure GitHub for SMB customers. Frontier Accelerate for Marketplace gives software partners one growth path, and multiparty private offers expand to more markets, including Hong Kong. Fabric IQ, now in Microsoft Copilot, gives you a new way to lead AI-readiness deals.

Incentives and Offers

The FY27 incentives portfolio has updated terms for claims filed from October 1, and CSP annual subscriptions billed monthly now carry a 5% uplift. New Azure CSP promotions launch November 2.

Partner Skilling

Catch up on September’s Azure partner update and the new Azure AI exam codes (AI-103, AI-200 and AI-300), and explore the new CAIP Microskilling Journey to build practical AI confidence for customer conversations.

Events

Plan your Ignite 2026 agenda, sponsor the Microsoft AI Tour, and register for GitHub Universe, the Better Together Marketplace event, and FabCon + SQLCon 2027.

Product Updates

Foundry routines now generally available for scheduled, event-driven agents

Routines in Foundry Agent Service are now generally available, running agents on a timer, on a recurring schedule, or in response to events such as new GitHub issues or Microsoft Teams channel messages. A new reminder tool, in preview, lets a hosted agent schedule itself to run again on the same conversation, so long-running tasks continue without custom polling code. Partners can deliver unattended agent automation, such as daily reports, compliance checks, and issue triage, without building schedulers, queues, or run-history storage for each customer. Find customer agents that still wait for a chat prompt and scope one recurring or event-based routine as a quick-win pilot.

GPT-6 and Claude Opus 5.5 arrive in Foundry with GA agent tooling

The best model for your customer’s business will keep changing. As models advance, your customers 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. Latest in the model lineup are GPT-6 Sol and GPT-6 Luna that joined GPT-6 Astra as generally available in Microsoft Foundry, and Claude Opus 5.5 arrived for long-running coding and knowledge work. The right model for a job should be determined through evaluations: an agent handling a complex business decision and one routing routine requests have different needs. Astra brings advanced reasoning, software engineering and computer use to demanding work that requires both judgment and action. Completing the lineup, GPT-6 Sol is excellent for general-purpose use, while Luna brings efficient intelligence to high-volume data and preparatory work. As the GPT-6 lineup expands, the opportunity is not simply to choose a newer model, but to improve what your agents can accomplish while saving money. Customers should look beyond pricing per token and seek to understand cost per task, which is a better measure for understanding the ROI of AI.

These model enhancements are complemented by additional enhancements - Tool search in Toolboxes and Agent-to-Agent (A2A) are now generally available, and voice agents covering 80-plus languages entered public preview.

Resources

• GPT-6 Astra, Sol, and Luna: For production agents in Microsoft Foundry
• Claude Opus 5.5

SQL Server on Azure Local is now generally available

SQL Server on Azure Local is generally available for connected deployments and for disconnected operations (ALDO) in regulated, remote, or air-gapped sites. Connected sites can use eligible existing licenses or pay-as-you-go through Azure Arc, while fully disconnected sites use Azure Hybrid Benefit. Partners can take SQL modernization into sovereign, edge, and regulated environments that cannot move to public cloud, under one Azure-managed operating model. Identify customers running SQL Server in regulated or disconnected sites and scope an Azure Local pilot, pairing it with the Digital Sovereignty specialization where it fits.

Resources

• New Microsoft data innovations unlock what only your business knows
• Generally Available: SQL Server on Azure Local Disconnected (ALDO)

Azure SQL adds GA vector indexes and larger Hyperscale compute

Vector search and vector indexes are now generally available in Azure SQL Database through the CREATE VECTOR INDEX and VECTOR_SEARCH T-SQL capabilities. Azure SQL Database Hyperscale adds 192 vCore options, and Database Hub in Fabric enters preview to manage SQL Server, Azure SQL, PostgreSQL, and Cosmos DB estates in one place. Partners can build retrieval-augmented generation (RAG) apps on a customer's existing Azure SQL data without a separate vector store, and size larger OLTP migrations onto Hyperscale. Pick one customer RAG prototype that copies data into a separate vector store and test whether native Azure SQL vector indexes can replace it.

Resources

• Generally Available: Vector search and vector indexes in Azure SQL
• Generally Available: Azure SQL updates for late-September 2026

New Azure VM lifecycle policy starts the clock on Dv3 and Ev3 series

Azure introduced a four-stage VM lifecycle policy (Current, Extended, End of Life, Retired), starting with general purpose, memory, compute, and storage optimized families. The Dv3, Dsv3, Ev3, and Esv3 series now enter End of Life and retire on November 15, 2029, and Reserved Instances may no longer be offered at that stage. Managed service and migration partners get a policy-backed reason to move customer estates to current VM generations before quota and Reserved Instance options narrow. Run an Azure Advisor review across managed customer subscriptions, list Dv3 and Ev3 footprints, and package a right-sizing and migration offer.

Resource: Retirement: Dv3, Dsv3, Ev3, and Esv3 Azure VMs

SQL Migration Agent Skills automate SQL Server moves to Azure

SQL Migration Agent Skills give AI agents reusable skills for assessment, target selection, migration execution, and post-migration validation from SQL Server to Azure. Azure Arc now lets teams select Azure SQL Database, including Hyperscale, as a migration target directly in its database migration experience, in public preview. Migration partners can shorten assessment and cutover cycles on SQL estates and standardize delivery across engagements with agent-guided steps. Trial the skills on one upcoming SQL Server migration and compare effort against your current assessment and validation runbook.

Resources

• Public Preview: Migrate directly from Azure Arc to Azure SQL Database, including Hyperscale
• Public Preview: Microsoft SQL Agent Skills

GitHub Copilot adds GA sandboxing, computer use, and Azure Canvases

Local sandboxing: Local sandboxing for GitHub Copilot is now generally available in GitHub Copilot CLI, the GitHub Copilot app, and VS Code sessions using Agent Host. Local sandboxes give developers a secure execution boundary for agentic workflows on their own machines. Tools and commands initiated by Copilot run with restricted access to the filesystem, network, credentials, and other system capabilities, based on policies defined by the developer or their organization. Local sandboxing is included with GitHub Copilot at no additional cost.

Computer use: Computer use is now available in public preview in GitHub Copilot CLI and the GitHub Copilot app on macOS and Windows.

Copilot can interact with desktop applications on your behalf (e.g., reading accessible app content and visual context, clicking controls, entering and editing text, pressing keys, scrolling, dragging, and navigating workflows across applications). This expands the tasks Copilot can help automate, including workflows in legacy and GUI-only software that do not provide an API, command-line interface, or MCP integration.

Azure Canvases: Introducing Azure Canvases for GitHub Copilot. Canvas extensions bring interactive tools such as dashboards, editors, and guided workflows directly into the GitHub Copilot app. You and your agent share a workspace where you can see progress, make changes, and approve next steps without digging through chat history.

Routine interactions, such as filtering a table or selecting an option, can run directly in code rather than requiring another model call. That means less waiting and fewer AI credits spent on simple tasks, while keeping the agent available when you need its help.

Resources

• GitHub Copilot can now interact with desktop apps with computer use
• How canvases make agentic workflows visible, steerable, and cost-efficient
• Announcing: Azure canvases for GitHub Copilot
• Public Preview: Introducing a Guided Copilot Experience for Building Azure Apps in VS Code

GitHub Copilot adds GPT-6, Claude 5.5, and Grok 4.7 and retires older models

Claude Opus 5.5, Claude Sonnet 5.5, Claude Haiku 5.5, GPT-6 Sol, GPT-6 Luna, GPT-6.1 Sol, and Grok 4.7 reached GitHub Copilot between September 21 and October 7, billed under usage-based billing.

GitHub deprecated four models on October 2 and removes six more, including GPT-5.5, GPT-5.4, and GPT-5 mini, on October 19, 2026, with a named replacement for each. Partners managing Copilot Business or Enterprise for customers need to review model policies, since new models switch on by default and retired ones break pinned workflows. Audit customer model policies and any scripts or agents that pin a retired model, move them to the named replacements, and set GPT-6 Luna as a low-cost default where it fits.

Resources

• Selected models in GitHub Copilot deprecated
• OpenAI’s GPT-6 Sol and GPT-6 Luna now available
• Claude Opus 5.5 is now available in GitHub Copilot

Azure Container Apps Sandboxes give agents isolated, fast-starting compute

With Azure Container Apps Sandboxes, every agent execution gets a fully isolated environment of its own, created in seconds and gone when the work is finished. It runs as an identity you control, can access only the systems you have allowed it to reach, and never stores the credentials it uses to get there. And when a task spans hours or days, the environment can be paused and resumed with its full working context intact, so the agent picks up precisely where it left off. How does this work? Each environment runs inside its own hardware-isolated microVM, which is what makes strong separation and sub-second startup possible at the same time. As an example success story, Digital Gateway Powered by Claude brings Claude’s capabilities into KPMG’s connected tax platform on Microsoft Azure, giving professionals a secure, trusted environment to work alongside AI. Within the platform, DG Cowork serves as the AI-powered workspace where professionals can analyze information, generate content, and advance complex work. Because client data must remain separated by engagement, the platform was built with engagement-specific workspaces and controls at its foundation. DG Cowork is designed for a global scale, with more than 30,000 Azure Container Apps Sandboxes running concurrently.

Azure HorizonDB enters public preview with PostgreSQL 18 support

Azure HorizonDB, a fully managed, PostgreSQL-compatible, cloud-native database service for scalable, high-performance workloads, is now in public preview. The preview includes PostgreSQL 18 support, and more regions were added on October 5. Partners gain a new PostgreSQL-compatible modernization target for customers outgrowing self-managed PostgreSQL. Shortlist PostgreSQL workloads with scale limits and evaluate HorizonDB in preview before recommending a production path.

Resource: Public Preview: Azure HorizonDB expands to additional regions

GitHub Advanced Security opens self-serve trials for GitHub Team

GitHub Team customers can now start self-serve GitHub Advanced Security trials to evaluate GitHub Code Security and GitHub Secret Protection. A secret detection model built with Microsoft Applied Sciences now powers AI-detected alerts at no extra charge for Secret Protection and Advanced Security customers. Smaller customers on the Team plan can test GitHub security tooling without a sales cycle, which lowers the barrier for partners to attach secure development services. Offer Team-plan customers a guided trial with a secret-scanning baseline as the entry point to a secure development engagement.

Resources

• Secret protection must scale with software
• Purpose-built model for leaked secret detection

Azure Functions runtimes lose support November 10, with more retirements set

Azure Functions support for .NET 8, .NET 9, and PowerShell 7.4 ends on November 10, 2026, and customers should move to .NET 10 and PowerShell 7.6, which is now generally available. Further notices set end dates for Azure Deployment Environments on February 22, 2027, App Service support for Java 8, 11, and 17 on September 1, 2027, and Microsoft Dev Box on September 18, 2028. The November 10 date is approaching fast and we recommend partners review their impacted customers and explore opportunties to run upgrade and modernization work. Scan managed customer subscriptions for function apps on .NET 8, .NET 9, or PowerShell 7.4 and schedule upgrades before November 10, then roll the later retirements into the same plan.

Resources

• Retirement: Support for PowerShell 7.4 ends on November 10, 2026
• Retirement: Support for Java 8, 11 and 17 will end on September 1, 2027
• Retirement: Azure Deployment Environments will be retired on February 22, 2027

Microsoft Sovereign Cloud announces new capabilities

At Microsoft Frontier Tour in Paris on October 20, 2026, Satya Nadella announced new Microsoft Sovereign Cloud capabilities across public cloud, private cloud and the growing partner ecosystem; demonstrating one year of progress since Microsoft set out its expanded sovereign cloud approach in June 2025. Now generally available are External Key Management, Sovereign Landing Zone with Bicep and Terraform on Azure Verified Modules, confidential VMs and SQL Server on Azure Local, while Data Guardian and Production Touch Ledger roll out in the EU and EFTA. Azure Confidential Clean Rooms is in limited preview, with DocumentDB, Blob Storage and connected-to-disconnected switching on Azure Local entering public preview. At Microsoft Ignite, Sovereign Control Panel will enter public preview, and both Foundry Local and GitHub Enterprise Local on Azure Local will become generally available. Multitenancy on Azure Local is coming soon. Azure Local is also expanding, with new third-party solutions validated to run on the platform, including in disconnected environments. With the growing urgency from customers to address digital sovereignty needs, Microsoft partners have the opportunity to lead digital sovereignty conversations with customers seeking to navigate the risks of cloud and AI adoption without fragmenting their digital estate. Partners can help customers apply the appropriate level of control to each workload based on their sovereignty requirements through a vast range of opportunities outlined in the digital sovereignty practice partner blog. Read the official blog to learn more about the Microsoft Sovereign Cloud announcement.

Resources

• Digital Sovereignty Specialization
• Build your digital sovereignty practice now
• Discover Microsoft Sovereign Cloud

Lead AI-readiness deals with Fabric IQ, now in Microsoft Copilot

Fabric IQ is now generally available in Copilot Chat and Cowork, bringing trusted business context from OneLake and Power BI semantic models into Copilot. Copilot customers get Fabric insights with no additional AI token costs, and integration with the new Code experience is coming through the Frontier program. Turn one-off data projects into a full roadmap: modernization, semantic modeling, governance and agents. Your customers get reliable AI results, and you win bigger, longer engagements. Read the FabCon+SQLCon partner recap and add Fabric IQ to your next customer AI-readiness workshop.

Resource: FabCon and SQLCon 2026: Explore Microsoft Fabric and SQL innovations

Partner Enablement & Go-to-market

Make your next GitHub deployment with SMB customers easier

Turn AI and agent demand into new customer opportunities with GitHub. The new GitHub on Azure Partner Provisioning and Configuration Guide gives CSP partners serving SMB customers step-by-step guidance on GitHub Enterprise provisioning, identity and user access, GitHub Copilot setup, and GitHub Advanced Security configuration. Use it to streamline deployments, deliver a smoother customer experience, and accelerate time-to-value for your SMB customers. Consult the guide for key provisioning and configuration steps before your next customer deployment.

Resource: Build your AI agent skills

Digital Sovereignty specialization moves to a streamlined Partner Center flow

Since September 30, 2026, enrollment and renewal for the Digital Sovereignty specialization run through a streamlined Partner Center process instead of the previous manual route. Eligibility requires one qualifying Security specialization, one Azure specialization such as Infra and Database Migration, Azure VMware Solution, or Azure Expert MSP, and one Modern Work specialization, Modernize Endpoints, and a third-party audit. Specialized partners may be eligible for FY27 Frontier Accelerate for Azure Digital Sovereignty pre-sales and post-sales offers across sovereign public cloud, Azure Local, and national partner clouds. Check your specialization mix against the requirements and, if you qualify, start the Partner Center enrollment and line up the audit.

Frontier Partner specialization opens for enrollment in Partner Center

The Frontier Partner specialization is open for enrollment and validates partners that design, build, deploy, govern, and secure AI agents across Microsoft Foundry, GitHub Copilot, Microsoft 365 Copilot, and Microsoft security products. Benefits include badging, priority search placement, and skill-aligned benefits. Partners delivering Foundry and GitHub Copilot agent work can earn a visible credential that sets them apart in customer and co-sell searches. Map certified staff and delivered agent projects to the requirements in Partner Center and decide whether to enroll this quarter.

Choose between Document Intelligence and Content Understanding

A new Foundry guide recommends starting new cloud OCR and layout workloads on Azure Content Understanding prebuilt analyzers, citing lower per-page pricing for Layout. The guide confirms successful Azure Document Intelligence workloads do not need to migrate, and Document Intelligence containers remain the option for on-premises or air-gapped processing. Document-processing partners get a clear decision framework per workload and a reassuring message for customers already in production on Document Intelligence. Use the guide to set a default service for new document automation proposals and confirm with existing customers that no migration is required.

Foundry Dev Pack sets up a full Foundry workstation in one command

Foundry Dev Pack installs the Azure CLI, Azure Developer CLI with the Microsoft Foundry extension, the Foundry Skill for coding agents, the Foundry Toolkit for VS Code, and Foundry Canvas in preview from a single command. On Windows it installs with winget install Microsoft.FoundryDevPack, with brew and curl options for macOS and Linux, and azd ai agent init starts a new agent. Delivery teams and customer workshops can start from the same Foundry toolchain in minutes instead of hand-configuring each machine. Add Foundry Dev Pack to onboarding for Foundry delivery staff and to the prerequisites for customer hackathons and envisioning workshops.

Frontier Accelerate for Marketplace gives software partners one growth path

Frontier Accelerate for Marketplace is now available as a Microsoft AI Cloud Partner Program experience for partners building B2B apps and agents on the Microsoft Cloud, organized around build and publish, grow, and differentiate stages. Premium partners can access up to $30,000 in Azure sponsorship, a named engagement manager, customer propensity scoring, and immediate access to Partner Marketing Center Pro. Software development companies get one path from a transactable Marketplace offer to co-sell eligibility, and early adopter Level Access has reached $1.75 million in Marketplace contract value. Compare the no-cost and Premium paths, then enroll if you meet the requirements and were not automatically enrolled.

Resources

• Frontier Accelerate for Marketplace: How partners grow
• Build. Monetize. Scale. Frontier Accelerate for Marketplace launches to power software companies on Microsoft Marketplace

Multiparty private offers reach more markets, Hong Kong from October 8

Multiparty private offers through Microsoft Marketplace became available in Hong Kong on October 8, 2026, building on expansion across Europe, Australia, Japan, and South Africa. The offers let channel partners procure third-party cloud and AI solutions for customers through Marketplace, so software companies can sell through partners with established customer relationships. Software companies and channel partners can transact jointly through Marketplace in more markets, pairing solution IP with local customer relationships. Identify one software company whose solution fits your customer base and structure a multiparty private offer for an open opportunity.

Resource: Announcing: Multiparty private offers in Microsoft Marketplace expands to Hong Kong

Incentives & Offers

FY27 incentives portfolio updated for claims from October 1, 2026

Microsoft adjusted the FY27 partner incentives portfolio effective October 1, 2026, while claims submitted on or before September 30 keep the prior terms. FY27 Enterprise, SPLA Reseller, and Hosting incentives are now available with unchanged terms, and the refreshed Business Applications Pre-Sales Advisor incentive extends to Cloud Solution Provider (CSP) customers. Total investment stays the same, but targeting now follows the largest customer opportunities, so claims filed from October 1 fall under the updated terms. Review the incentives policy guide, confirm your organization's eligibility, and verify that bank and tax details are current before your next claim.

CSP annual software subscriptions billed monthly carry a 5% uplift

From October 1, 2026, a 5 percent cost of capital uplift applies at renewal to annual-term CSP software subscriptions billed monthly, such as SQL Server and Windows Server. Annual billing and month-to-month subscriptions are unchanged. Partners reselling SQL Server and Windows Server through CSP need to update quotes and renewal conversations, and may steer customers toward annual billing. Flag affected renewals in your CSP book and confirm billing-frequency options with customers before the next renewal date.

New Azure CSP promotions launch November 2

Azure CSP promotions launch November 2, giving you a new, limited-time lever to win price-sensitive customers, unlock new workloads, and accelerate deals. The promotions target net-new consumption in defined workloads and customer segments, starting with data and AI scenarios such as database modernization, Microsoft Fabric, and AI application services. Use them to identify eligible customers, activate targeted offers, and support customer conversations with readiness and go-to-market resources. Sign in to Partner Center to see which customers qualify, then build your customer activation plan.

Partner Skilling

September Azure partner update: CSP promotions, skilling, and a new badge

The September partner update covers upcoming Azure promotions for Cloud Solution Provider (CSP) partners, AI agent skilling, co-sell training, and the Frontier Transformation Engineer badge. Partners planning CSP pipeline and technical skilling get one place to track upcoming Azure promotions and the new badge path. Have your CSP and skilling leads review the update and match the upcoming Azure promotions to open customer opportunities.

Azure AI certifications get new exam codes: AI-103, AI-200, AI-300

Several Azure certifications have new exams: AI-102 becomes AI-103, AZ-204 becomes AI-200, DP-100 becomes AI-300, AI-900 becomes AI-901, and AZ-800 and AZ-801 become AZ-802. More than 15,000 engineers are on the Frontier Transformation Engineer badge journey, and the Partner Skilling Hub AI agent builds personalized learning plans. Partners tracking certification counts for specializations and designations need to move learners to the new exams and refresh skilling plans. Have your skilling lead remap in-flight learners to the new exam codes and use the Skilling Hub agent to rebuild role-based plans.

Resource: Partner Blog | Build the skills to turn AI opportunity into customer execution

Introducing the CAIP Microskilling Journey

We’re excited to launch our new CAIP Microskilling Journey — a conversation-led learning path designed to help partners build practical AI confidence quickly and apply it in real customer scenarios.

Events

Plan your Microsoft Ignite 2026 agenda with the partner guide

Microsoft Ignite 2026 runs November 17 to 20 at the Moscone Center in San Francisco and online, with more than 80 partner business breakout sessions. The Frontier Transformation Partner keynote takes place Wednesday, November 18, from 9:00 to 10:00 AM Pacific Time. Sessions across Cloud & AI Platforms, Security, and the Microsoft AI Cloud Partner Program give partners a read on product direction before customer demand peaks. Register now and build a tailored agenda early, since sessions fill quickly.

Ignite Partner Interview Casting

Are you helping customers innovate with Cloud & AI Platform solutions? We’re inviting partners to sign up for a short video interview opportunity to spotlight real customer impact, practical learnings, and what’s working in the field. Selected stories may be featured across Microsoft channels, with participant consent.

SMB partner sessions at Microsoft Ignite

Microsoft Ignite includes seven partner-focused SMB sessions to help you learn about Microsoft investments, sharpen your practice strategy, and identify new growth opportunities. The broader catalog also includes SMB customer-relevant sessions you can attend alongside customers. Use the catalog to stay current on the latest Microsoft innovations and sharpen your SMB customer conversations. Explore the SMB partner sessions, register for the sessions most relevant to your practice, and invite your customers to register for Microsoft Ignite.

Resource: Register for Ignite

Sponsor the Microsoft AI Tour to reach qualified AI buyers

Sponsorship is open for this year's Microsoft AI Tour, giving partners a stage to share AI expertise with qualified audiences. A sponsorship slot puts partner AI expertise in front of qualified audiences and creates a direct route to new pipeline. Check the sponsorship details and decide whether a tour stop fits your pipeline goals for the year.

FabCon+SQLCon

FabCon + SQLCon in Atlanta: Turning the latest data and AI innovation into partner growth Register for FabCon and SQLCon US, March 8–11, 2027, at the Georgia World Congress Center in Atlanta. Use code MSPART to save $200 and learn directly from Fabric and SQL product and engineering experts. Register your data and AI team now with code MSPART.

Better Together: Winning with your partners on Microsoft Marketplace

The digital event Better Together: Winning with Your Partners on Microsoft Marketplace took place on October 29, 2026. Marketplace-focused partners heard current guidance on partner-led selling through Marketplace in one session.

GitHub Universe 2026 just concluded on October 28 to 29 in San Francisco and online

The recently concluded GitHub Universe 2026 featured technical sessions covering agent-written code, agent memory, and npm dependency security. Universe is where GitHub typically shares Copilot and platform direction, giving partners an early read on developer and agent tooling for Azure app engagements. Send developer practice leads to the watch the recording and plan follow-up coverage of announcements for the November issue.