New Relic and Microsoft Embed Intelligent Observability Into Azure at Build 2026
The volume of AI-generated code, distributed services, and autonomous agents now running in production has outpaced what any team can manage manually. That is the reality New Relic and Microsoft addressed at Microsoft Build 2026 in San Francisco this week.
Together, they are embedding New Relic intelligent observability directly into Azure workflows. The result is a native experience, not a bolt-on tool.
Enterprise teams can now discover, deploy, and start using New Relic directly through the Azure portal in about three minutes. Speed and simplicity are deliberate. Furthermore, New Relic is available through Microsoft Marketplace. That means customers with existing Azure commitments can apply that spend to their observability investment, without a separate procurement process.
At the centre of the partnership sits the New Relic MCP Server. It makes New Relic intelligent observability accessible to any AI agent or tool through the Model Context Protocol. New Relic is now available in the Azure AI Foundry Tools Catalog and Azure API Center. Developers can find it directly at mcp.azure.com. Consequently, observability data flows to AI agents operating inside Azure, without engineers manually bridging between systems.
The integration also powers a smarter incident response loop. When an alert fires in New Relic, the Azure SRE Agent calls the New Relic MCP Server for observability context. It then delivers automated incident detection, root cause analysis, and remediation across services, browser, mobile, and infrastructure. As a result, engineering teams arrive at incidents already briefed.
For teams building AI applications, there is additionally New Relic Monitoring for Microsoft Foundry. It ingests logs and metrics from Azure directly, giving teams the data they need to understand how their AI systems behave in production.
Platform engineers benefit as well. Azure Autodiscovery provides full dependency maps and overlays configuration changes on performance graphs. Therefore, root causes surface faster during investigations. Meanwhile, enterprises running SAP on Azure can access New Relic’s SAP monitoring solution through Microsoft Marketplace, SAP-certified, agentless, and procurable within existing Azure spend.
The impact is already visible for real customers. BlackLine uses New Relic to monitor Power BI dashboards and has reduced MTTR from multiple hours down to minutes, while cutting defects using New Relic telemetry.
Varun Verma, GVP Engineering at New Relic, captured the partnership’s intent clearly. Working closely with Microsoft, New Relic built integrations that put intelligent observability directly into the workflows engineers already live in, so customers don’t need to context-switch into another tool.
For more, read the New Relic and Microsoft strategic partnership announcement, explore New Relic on Microsoft Marketplace, or register for New Relic NOW on June 23.
