At Microsoft Ignite 2025, Microsoft outlined a vision for the “frontier” organization: one dramatically transformed through AI and AI agents. The more than 20,000-person crowd was treated to demos that showcased how working alongside agents will occur for everyone from everyday business users to the infrastructure and operations, security and risk, and developer personas who largely filled the Ignite seats. While not everything landed (the fictional company, Zava, was a bit overdone), the underlying message was clear: Microsoft is navigating the frontier right alongside its customers.
Here were the major announcements and our analysis:
Fabrics For The Agentic Wild West
Microsoft Fabric, introduced two years ago, unifies analytics, data engineering, and real-time workloads within a single governed environment, reducing fragmentation across tools and pipelines. By standardizing access, observability, and lineage, it gives enterprises a stronger foundation for real-time analysis and agentic AI. Microsoft has now expanded this with Fabric IQ, a semantic intelligence layer that delivers deeper, more actionable insights. Its core ontology provides a shared business model that connects data across the business model and organization for a more consistent understanding. Today, supporting a semantic layer in a fabric is done in an inconsistent manner, requiring more effort and slowing down initiatives. This advancement will help organizations accelerate AI adoption, enhance decision-making, and enable greater business value from their data.
Microsoft also announced that over 90% of the Fortune 500 use Copilot but also recognized that the future is custom agents and multiagent orchestration. Copilot Studio allows regular users to build agents and link flows made largely on Work IQ, the Microsoft 365 data layer. Foundry IQ provides access to thousands of AI models and connects Work IQ, Fabric IQ, custom applications, and the web. It ultimately helps align multiagent workflows. Finaly, Agent 365 is a new agent control plane that offers an agent registry, access control, and observability. It ties into the Microsoft 365 admin dashboard for easy access.
While all of these additions are welcome, there is some confusion about what solution to use when. For example, Agent 365 and Agent HQ (announced at GitHub Universe 2025 a few weeks ago) can both manage agents. Likewise, DataIQ can be used separately from Fabric IQ or in tandem. For some customers, it can be difficult to understand which use cases are best served by which Microsoft offerings.
Making Security More Accessible To Frontier Settlers
Microsoft had several announcements that made addressing security with agentic workflows easier. For those looking to experiment with Microsoft Security Copilot but struggling with the price, there was great news: It’s now included with Microsoft 365 E5 licenses. This means 400 security compute units (SCUs) per month for every 1,000 user licenses, up to 10,000 SCUs per month. It’s a much-needed change, as most of the market is including AI capabilities in their products and services at no cost. It’s also undoubtedly going to affect customer adoption of third-party security offerings as customers use built-in agents.
Sentinel graph is also officially generally available (GA). In an AI-first world, graph databases are especially effective to help AI understand relationships between different objects. For security, this is especially true for the links between identities, endpoints, and other important entities. Graph sits on top of Sentinel Data Lake, which also got a series of enhancements. One of the most important was that Microsoft Defender data can now be ingested directly into Sentinel Data Lake using the built-in table management experience in the Defender portal, so users can manage Defender ingest costs at the lower-price data storage tier.
Microsoft announced several features to help govern employee usage of AI agents. An expanded public preview of Entra Agent ID allows organizations to register and manage AI agents to gain an inventory of the entire organization’s agent portfolio, which then enables governance of the entire agent identity lifecycle just as with human identities. The Entra team announced public previews of agents for Conditional Access optimization, Access Review Agent, Identity Risk Management, and Application Lifecycle Management. These will collectively help organizations reduce overall identity-related risks and allow enforcement of least-privilege access principles.
Finally, Microsoft also announced three new agents for threat hunting, threat intelligence briefings, and threat detection. It is also leaning into the third-party era: Sentinel’s Model Context Protocol (MCP) server went GA and natively integrates with Copilot Studio and Microsoft Foundry so your agents can interact with your data in Sentinel. The Microsoft Security Store also went GA and can support over 100 third-party tools and agents. Lastly, an automatic attack disruption feature, which had previously been focused on Defender XDR, now includes data from AWS, Proofpoint, and Okta via Sentinel.
Serving The New Developer Frontiersman
Microsoft continued to show its inclination toward making development available to all. App Builder, built into Copilot, allows nondevelopers to build applications without ever looking at a line of code or a low-code model. The new Workflows agent allows business users to easily automate processes — again, without having to look at a workflow diagram.
Microsoft (alongisde GitHub) is showcasing the ability for people — those who call themselves “developers” and those who don’t — to build applications, assign issues, and perform app modernization completely using agents. While Forrester sees this agentic software development as a viable future, it’s also important to recognize that the software development lifecycle is not a single uniform entity and that your mileage will vary when it comes to efficiency gains with AI. You need to be careful as you measure your ROI.
Life On The Frontier
In short, Microsoft is providing a lot of ways to trek across the new agentic frontier. That said, it isn’t being particularly prescriptive on what type of wheels to use on the wagon. To be fair, this is challenging a lot of players in the AI space. What is needed at this time, however, is not just options but recommendations. We encourage Microsoft to continue to forge new agentic solutions, but it also needs to provide concrete directions to customers when more than one Microsoft wagon wheel can do the job.
If you would like direction about Microsoft’s new offerings, please schedule an inquiry or guidance session with us. If you are interested in learning more about the security impact of AI agents and attended Ignite in person or virtually, you can also check out the recording of Forrester analyst Allie Mellen’s fireside chat at Ignite on AI agents and the agentic security operations center.
