Introducing Azure API Management Policy Toolkit
We’re excited to announce the early release of the Azure API Management Policy Toolkit, a set of libraries and tools designed to change how developers work with API Management policies, making policy management more approachable, testable, and efficient for developers. Empowering developers with Azure API Management Policy Toolkit Policies have always been at the core of Azure API Management, offering powerful capabilities to secure, change behavior, and transform requests and responses to the APIs. Recently, we've made the policies easier to understand and manage by adding Copilot for Azure features for Azure API Management. This allows you to create and explain policies with AI help directly within the Azure portal. This powerful tool lets developers create policies using simple prompts or get detailed explanations of existing policies. This makes it much easier for new users to write policies and makes all users more productive. Now, with the Policy Toolkit, we’re taking another significant step forward. This toolkit brings policy management even closer to the developer experience you know. Elevating policy development experience Azure API Management policies are written in Razor format, which for those unfamiliar with it can be difficult to read and understand, especially when dealing with large policy documents that include expressions. Testing and debugging policy changes requires deployment to a live Azure API Management instance, which slows down feedback loop even for small edits. The Policy Toolkit addresses these challenges. You can now author your policies in C#, a language that feels natural and familiar to many developers and write tests against them. This shift improves the policy writing experience for developers, makes policies more readable, and shortens the feedback loop for policy changes. Key toolkit features to transform your workflow: Consistent policy authoring. Write policies in C#. No more learning Razor syntax and mixing XML and C# in the same document. Syntax checking: Compile your policy documents to catch syntax errors and generate Razor-based equivalents. Unit testing: Write unit tests alongside your policies using your favorite unit testing framework. CI/CD integration: Integrate Policy Toolkit into automation pipelines for testing and compilation into Razor syntax for deployment. Current Limitations While we’re excited about the capabilities of the Policy Toolkit, we want to be transparent about its current limitation: Not all policies are supported yet, but we’re actively working on expanding the coverage. We are working on making the Policy Toolkit available as a NuGet package. In the meantime, you’ll need to build the solution on your own. Unit testing is limited to policy expressions and is not supported for entire policy documents yet. Get Started Today! We want you to try the Azure API Management Policy Toolkit and to see if it helps streamlining your policy management workflow. Check out documentation to get started. We’re eager to hear your feedback! By bringing policy management closer to the developer, we’re opening new possibilities to efficiently manage your API Management policies. Whether you’re using the AI-assisted approach with Copilot for Azure or diving deep into C# with the Policy Toolkit, we’re committed to making policy management more approachable and powerful.Introducing GenAI Gateway Capabilities in Azure API Management
We are thrilled to announce GenAI Gateway capabilities in Azure API Management – a set of features designed specifically for GenAI use cases. Azure OpenAI service offers a diverse set of tools, providing access to advanced models like GPT3.5-Turbo to GPT-4 and GPT-4 Vision, enabling developers to build intelligent applications that can understand, interpret, and generate human-like text and images. One of the main resources you have in Azure OpenAI is tokens. Azure OpenAI assigns quota for your model deployments expressed in tokens-per-minute (TPMs) which is then distributed across your model consumers that can be represented by different applications, developer teams, departments within the company, etc. Starting with a single application integration, Azure makes it easy to connect your app to Azure OpenAI. Your intelligent application connects to Azure OpenAI directly using API Key with a TPM limit configured directly on the model deployment level. However, when you start growing your application portfolio, you are presented with multiple apps calling single or even multiple Azure OpenAI endpoints deployed as Pay-as-you-go or Provisioned Throughput Units (PTUs) instances. That comes with certain challenges: How can we track token usage across multiple applications? How can we do cross charges for multiple applications/teams that use Azure OpenAI models? How can we make sure that a single app does not consume the whole TPM quota, leaving other apps with no option to use Azure OpenAI models? How can we make sure that the API key is securely distributed across multiple applications? How can we distribute load across multiple Azure OpenAI endpoints? How can we make sure that PTUs are used first before falling back to Pay-as-you-go instances? To tackle these operational and scalability challenges, Azure API Management has built a set of GenAI Gateway capabilities: Azure OpenAI Token Limit Policy Azure OpenAI Emit Token Metric Policy Load Balancer and Circuit Breaker Import Azure OpenAI as an API Azure OpenAI Semantic Caching Policy (in public preview) Azure OpenAI Token Limit Policy Azure OpenAI Token Limit policy allows you to manage and enforce limits per API consumer based on the usage of Azure OpenAI tokens. With this policy you can set limits, expressed in tokens-per-minute (TPM). This policy provides flexibility to assign token-based limits on any counter key, such as Subscription Key, IP Address or any other arbitrary key defined through policy expression. Azure OpenAI Token Limit policy also enables pre-calculation of prompt tokens on the Azure API Management side, minimizing unnecessary request to the Azure OpenAI backend if the prompt already exceeds the limit. Learn more about this policy here. Azure OpenAI Emit Token Metric Policy Azure OpenAI enables you to configure token usage metrics to be sent to Azure Applications Insights, providing overview of the utilization of Azure OpenAI models across multiple applications or API consumers. This policy captures prompt, completions, and total token usage metrics and sends them to Application Insights namespace of your choice. Moreover, you can configure or select from pre-defined dimensions to split token usage metrics, enabling granular analysis by Subscription ID, IP Address, or any custom dimension of your choice. Learn more about this policy here. Load Balancer and Circuit Breaker Load Balancer and Circuit Breaker features allow you to spread the load across multiple Azure OpenAI endpoints. With support for round-robin, weighted (new), and priority-based (new) load balancing, you can now define your own load distribution strategy according to your specific requirements. Define priorities within the load balancer configuration to ensure optimal utilization of specific Azure OpenAI endpoints, particularly those purchased as PTUs. In the event of any disruption, a circuit breaker mechanism kicks in, seamlessly transitioning to lower-priority instances based on predefined rules. Our updated circuit breaker now features dynamic trip duration, leveraging values from the retry-after header provided by the backend. This ensures precise and timely recovery of the backends, maximizing the utilization of your priority backends to their fullest. Learn more about load balancer and circuit breaker here. Import Azure OpenAI as an API New Import Azure OpenAI as an API in Azure API management provides an easy single click experience to import your existing Azure OpenAI endpoints as APIs. We streamline the onboarding process by automatically importing the OpenAPI schema for Azure OpenAI and setting up authentication to the Azure OpenAI endpoint using managed identity, removing the need for manual configuration. Additionally, within the same user-friendly experience, you can pre-configure Azure OpenAI policies, such as token limit and emit token metric, enabling swift and convenient setup. Learn more about Import Azure OpenAI as an API here. Azure OpenAI Semantic Caching policy Azure OpenAI Semantic Caching policy empowers you to optimize token usage by leveraging semantic caching, which stores completions for prompts with similar meaning. Our semantic caching mechanism leverages Azure Redis Enterprise or any other external cache compatible with RediSearch and onboarded to Azure API Management. By leveraging the Azure OpenAI Embeddings model, this policy identifies semantically similar prompts and stores their respective completions in the cache. This approach ensures completions reuse, resulting in reduced token consumption and improved response performance. Learn more about semantic caching policy here. Get Started with GenAI Gateway Capabilities in Azure API Management We’re excited to introduce these GenAI Gateway capabilities in Azure API Management, designed to empower developers to efficiently manage and scale their applications leveraging Azure OpenAI services. Get started today and bring your intelligent application development to the next level with Azure API Management.Azure API Management Your Auth Gateway For MCP Servers
The Model Context Protocol (MCP) is quickly becoming the standard for integrating Tools 🛠️ with Agents 🤖 and Azure API Management is at the fore-front, ready to support this open-source protocol 🚀. You may have already encountered discussions about MCP, so let's clarify some key concepts: Model Context Protocol (MCP) is a standardized way, (a protocol), for AI models to interact with external tools, (and either read data or perform actions) and to enrich context for ANY language models. AI Agents/Assistants are autonomous LLM-powered applications with the ability to use tools to connect to external services required to accomplish tasks on behalf of users. Tools are components made available to Agents allowing them to interact with external systems, perform computation, and take actions to achieve specific goals. Azure API Management: As a platform-as-a-service, API Management supports the complete API lifecycle, enabling organizations to create, publish, secure, and analyze APIs with built-in governance, security, analytics, and scalability. New Cool Kid in Town - MCP AI Agents are becoming widely adopted due to enhanced Large Language Model (LLM) capabilities. However, even the most advanced models face limitations due to their isolation from external data. Each new data source requires custom implementations to extract, prepare, and make data accessible for any model(s). - A lot of heavy lifting. Anthropic developed an open-source standard - the Model Context Protocol (MCP), to connect your agents to external data sources such as local data sources (databases or computer files) or remote services (systems available over the internet through e.g. APIs). MCP Hosts: LLM applications such as chat apps or AI assistant in your IDEs (like GitHub Copilot in VS Code) that need to access external capabilities MCP Clients: Protocol clients that maintain 1:1 connections with servers, inside the host application MCP Servers: Lightweight programs that each expose specific capabilities and provide context, tools, and prompts to clients MCP Protocol: Transport layer in the middle At its core, MCP follows a client-server architecture where a host application can connect to multiple servers. Whenever your MCP host or client needs a tool, it is going to connect to the MCP server. The MCP server will then connect to for example a database or an API. MCP hosts and servers will connect with each other through the MCP protocol. You can create your own custom MCP Servers that connect to your or organizational data sources. For a quick start, please visit our GitHub repository to learn how to build a remote MCP server using Azure Functions without authentication: https://aka.ms/mcp-remote Remote vs. Local MCP Servers The MCP standard supports two modes of operation: Remote MCP servers: MCP clients connect to MCP servers over the Internet, establishing a connection using HTTP and Server-Sent Events (SSE), and authorizing the MCP client access to resources on the user's account using OAuth. Local MCP servers: MCP clients connect to MCP servers on the same machine, using stdio as a local transport method. Azure API Management as the AI Auth Gateway Now that we have learned that MCP servers can connect to remote services through an API. The question now rises, how can we expose our remote MCP servers in a secure and scalable way? This is where Azure API Management comes in. A way that we can securely and safely expose tools as MCP servers. Azure API Management provides: Security: AI agents often need to access sensitive data. API Management as a remote MCP proxy safeguards organizational data through authentication and authorization. Scalability: As the number of LLM interactions and external tool integrations grows, API Management ensures the system can handle the load. Security remains to be a critical piece of building MCP servers, as agents will need to securely connect to protected endpoints (tools) to perform certain actions or read protected data. When building remote MCP servers, you need a way to allow users to login (Authenticate) and allow them to grant the MCP client access to resources on their account (Authorization). MCP - Current Authorization Challenges State: 4/10/2025 Recent changes in MCP authorization have sparked significant debate within the community. 🔍 𝗞𝗲𝘆 𝗖𝗵𝗮𝗹𝗹𝗲𝗻𝗴𝗲𝘀 with the Authorization Changes: The MCP server is now treated as both a resource server AND an authorization server. This dual role has fundamental implications for MCP server developers and runtime operations. 💡 𝗢𝘂𝗿 𝗦𝗼𝗹𝘂𝘁𝗶𝗼𝗻: To address these challenges, we recommend using 𝗔𝘇𝘂𝗿𝗲 𝗔𝗣𝗜 𝗠𝗮𝗻𝗮𝗴𝗲𝗺𝗲𝗻𝘁 as your authorization gateway for remote MCP servers. 🔗For an enterprise-ready solution, please check out our azd up sample repo to learn how to build a remote MCP server using Azure API Management as your authentication gateway: https://aka.ms/mcp-remote-apim-auth The Authorization Flow The workflow involves three core components: the MCP client, the APIM Gateway, and the MCP server, with Microsoft Entra managing authentication (AuthN) and authorization (AuthZ). Using the OAuth protocol, the client starts by calling the APIM Gateway, which redirects the user to Entra for login and consent. Once authenticated, Entra provides an access token to the Gateway, which then exchanges a code with the client to generate an MCP server token. This token allows the client to communicate securely with the server via the Gateway, ensuring user validation and scope verification. Finally, the MCP server establishes a session key for ongoing communication through a dedicated message endpoint. Diagram source: https://aka.ms/mcp-remote-apim-auth-diagram Conclusion Azure API Management (APIM) is an essential tool for enterprise customers looking to integrate AI models with external tools using the Model Context Protocol (MCP). In this blog, we've emphasized the simplicity of connecting AI agents to various data sources through MCP, streamlining previously complex implementations. Given the critical role of secure access to platforms and services for AI agents, APIM offers robust solutions for managing OAuth tokens and ensuring secure access to protected endpoints, making it an invaluable asset for enterprises, despite the challenges of authentication. API Management: An Enterprise Solution for Securing MCP Servers Azure API Management is an essential tool for enterprise customers looking to integrate AI models with external tools using the Model Context Protocol (MCP). It is designed to help you to securely expose your remote MCP servers. MCP servers are still very new, and as the technology evolves, API Management provides an enterprise-ready solution that will evolve with the latest technology. Stay tuned for further feature announcements soon! Acknowledgments This post and work was made possible thanks to the hard work and dedication of our incredible team. Special thanks to Pranami Jhawar, Julia Kasper, Julia Muiruri, Annaji Sharma Ganti Jack Pa, Chaoyi Yuan and Alex Vieira for their invaluable contributions. Additional Resources MCP Client Server integration with APIM as AI gateway Blog Post: https://aka.ms/remote-mcp-apim-auth-blog Sequence Diagram: https://aka.ms/mcp-remote-apim-auth-diagram APIM lab: https://aka.ms/ai-gateway-lab-mcp-client-auth Python: https://aka.ms/mcp-remote-apim-auth .NET: https://aka.ms/mcp-remote-apim-auth-dotnet On-Behalf-Of Authorization: https://aka.ms/mcp-obo-sample 3rd Party APIs – Backend Auth via Credential Manager: Blog Post: https://aka.ms/remote-mcp-apim-lab-blog APIM lab: https://aka.ms/ai-gateway-lab-mcp YouTube Video: https://aka.ms/ai-gateway-lab-demoChoosing the right Azure API Management tier for your networking scenarios
There are different options when it comes to integrating your API Management with your Azure Virtual Network (VNet) which are important to understand. These options will depend on your network perimeter access requirements and the available tiers and features in Azure API Management. This blog post aims to guide you through the different options available on both the classic tiers and v2 tiers of Azure API Management, to help you decide which choice works best for your requirements. We need to define how are we going to call the tiers : developer, basic, standard , premium. For example v1 tiers, classical tiers, etc…
Announcing the Public Preview of the Applications feature in Azure API management
API Management now supports built-in OAuth 2.0 application-based access to product APIs using the client credentials flow. This feature allows API managers to register Microsoft Entra ID applications, streamlining secure API access for developers through OAuth 2.0 authorization. API publishers and developers can now more effectively manage client identity, access, and authorization flows. With this feature: API managers can identify which products require OAuth authorization by setting a product property to enable application-based access API managers can create and manage client applications and assign them access to specific products. Developers can see their registered applications in API management developer portal and use OAuth tokens to securely call APIs and products OAuth tokens presented in API requests are validated by the API Management gateway to authorize access to the product's APIs. This feature simplifies identity and access management in API programs, enabling a more secure and scalable approach to API consumption. Enable OAuth authorization API managers can now identify specific products which are protected by Microsoft Entra identity by enabling "Application based access". This ensures that only valid client applications which have a secure OAuth token from Microsoft Entra identity can access the APIs associated with this product. An application is created in Microsoft Entra corresponding to the product, with appropriate app role. Register client applications and assign products API managers can register client applications, identify specific developers as owners of these applications and assign products to these applications. This creates a new application in Microsoft Entra and assigns API permissions to access the product. Securely access the API using client applications Developers can login into API management developer portal and see the appropriate applications assigned to them. They can retrieve the application credentials and call Microsoft Entra to get an OAuth token, use this token to call APIM gateway and securely access the product/API. Preview limitations The public preview of the Applications is a limited-access feature. To participate in the preview and enable Applications in your APIM service instance, you must complete a request form. The Azure API Management team will review your request and respond via email within five business days. Learn more Securely access product APIs with Microsoft Entra applicationsAzure API Center Plugin for GitHub Copilot for Azure
GitHub Copilot has quickly become a developer’s best friend with its intuitive chat interface and seamless IDE integration. Now, we’re taking it a step further with GitHub Copilot for Azure, a GitHub Copilot extension designed to supercharge your Azure development tasks. 🎉 Introducing the Public Preview of the Azure API Center Plugin for GitHub Copilot for Azure! 🎉 What is a GitHub Copilot for Azure plugin? A plugin extends the capabilities of GitHub Copilot for Azure, allowing for modular customization without altering its core functionality. The API Center plugin for GitHub Copilot enables developers to incorporate Azure API Center context into their workflows. This integration helps tailor the outcomes to better meet specific needs, enhancing the overall development experience by making API creation and management more efficient and aligned with best practices. Key Features of the Azure API Center Plugin With this new plugin, you can effortlessly handle a variety of API-related tasks, making your development process smoother and more efficient: Generating API Specifications: Simply describe your requirements in natural language, and GitHub Copilot for Azure will create new API specifications tailored to your needs. It can also help you register these APIs into API Center swiftly. Designing Compliant APIs: Use GitHub Copilot for Azure to design API specifications that comply with API Center governance. The AI assistance ensures that your APIs are designed according to best practices and standards. Why This Matters The Azure API Center plugin for GitHub Copilot for Azure is a game-changer for developers working on the Azure platform. By integrating AI-driven assistance into your API development workflow, you can: Save Time: Automate the creation and registration of API specifications. Ensure Quality: Design APIs that adhere to best practices and compliance standards. Enhance Productivity: Focus on higher-level tasks while the plugin handles routine API-related tasks. Get Started Today! We invite you to explore the public preview and experience how the Azure API Center plugin for GitHub Copilot for Azure can enhance your development workflow. Join us in this exciting journey to make API development smarter and more efficient! If you have any questions or would like to connect, feel free to reach out to Julia Kasper on LinkedIn.Azure API Management Turns 10: Celebrating a Decade of Customer-Driven Innovation and Success
This September marks a truly special occasion: Azure API Management turns 10! Since our launch in 2014, we've been on an incredible journey, transforming how businesses connect, scale and secure their digital ecosystems. As the first cloud provider to integrate API management into its platform, Azure has led the way in helping organizations seamlessly navigate the evolving digital landscape.GA: Inbound private endpoint for Standard v2 tier of Azure API Management
Standard v2 was announced in general availability on April 1st, 2024. Customers can now configure an inbound private endpoint for their API Management Standard v2 instance to allow clients in your private network to securely access the API Management gateway over Azure Private Link. The private endpoint uses an IP address from an Azure virtual network in which it's hosted. Network traffic between a client on your private network and API Management traverses over the virtual network and a Private Link on the Microsoft backbone network, eliminating exposure from the public internet. Further, you can configure custom DNS settings or an Azure DNS private zone to map the API Management hostname to the endpoint's private IP address. Inbound private endpoint With a private endpoint and Private Link, you can: Create multiple Private Link connections to an API Management instance. Use the private endpoint to send inbound traffic on a secure connection. Use policy to distinguish traffic that comes from the private endpoint. Limit incoming traffic only to private endpoints, preventing data exfiltration. Combine with outbound virtual network integration to provide end-to-end network isolation of your API Management clients and backend services. Today, only the API Management instance’s Gateway endpoint supports inbound private link connections. In addition, each API management instance can support at most 100 private link connections. Typical scenarios You can use an inbound private endpoint to enable private-only access directly to the API Management gateway to limit exposure of sensitive data or backends. Some of the common supported scenarios include: Pass client requests through a firewall and configure rules to route requests privately to the API Management gateway. Configure Azure Front Door (or Azure Front Door with Azure Application Gateway) to receive external traffic and then route traffic privately to the API Management gateway. For example, see Connect Azure Front Door Premium to an Azure API Management with Private Link. Learn more API Management v2 tiers FAQ API Management v2 tiers documentation API Management overview documentation
