New Relic Inc. unveiled a suite of intelligent observability integrations with Microsoft Azure on Tuesday to streamline incident response and boost developer productivity as enterprises rush to adopt artificial intelligence (AI) workflows.
The company’s new AI Model Context Protocol (MCP) Server now feeds real-time observability data directly into Azure’s SRE Agent and Microsoft Foundry, eliminating the need for engineers to switch between platforms during critical troubleshooting sessions.
“AI agents are poised to transform how IT and development teams work, but leaders and practitioners need intelligent observability within their workflows to realize the full potential of agentic AI,” New Relic Chief Product Officer Brian Emerson said in a statement.
The Azure SRE Agent integration is designed to improve workflow. When New Relic triggers an alert or logs a deployment, the Azure agent automatically retrieves observability insights to diagnose issues across services, browsers, and mobile applications. This automation aims to reduce mean time to resolution, a critical metric for site reliability engineers managing production systems.
Integrations address a common challenge as AI agents become more prevalent: ensuring these automated systems have access to the observability data needed to make informed decisions during production incidents.
For developers working in Microsoft Foundry, a platform for building AI applications across GitHub, Visual Studio, Copilot Studio, and Microsoft Fabric, the integration delivers essential telemetry data and performance metrics directly within their development environment.
“These teams deserve a seamless workflow without switching between tools,” said Julia Liuson, president of Microsoft’s Developer Division. “Our latest integrations with New Relic mean that teams receive intelligent insights from Azure’s AI agents within their workflows.”
New Relic also introduced Azure Autodiscovery for platform engineers, which maps service dependencies and overlays configuration changes on performance graphs. This feature helps teams identify root causes in minutes rather than hours by correlating infrastructure changes with telemetry data.
Additionally, New Relic’s monitoring solution for SAP is now available on Microsoft Marketplace, offering Azure customers native connectivity to SAP systems without deploying additional agents. The tool provides predictive insights aimed at preventing costly business process interruptions.
The product news comes amid surging enterprise investment in AI infrastructure. Gartner predicts global AI spending will exceed $2 trillion in 2026, while Azure posted 33% revenue growth in the first quarter of 2025. Yet many development teams still struggle with fragmented tools that slow incident resolution.
“New Relic’s deeper integration with Azure gives AI agents the observability context they need to take meaningful action during incidents. This enables engineers to work inside Azure’s SRE Agent or Microsoft Foundry and see the same telemetry the system sees. This is critical if teams expect agent-driven workflows to improve reliability rather than add noise,” said Mitch Ashley, vice president/practice lead of DevOps and AppDev at Futurum Group.
“Observability has to move directly into the path of development, deployment, and incident response. By tying its MCP Server, Azure SRE Agent, and Foundry together, New Relic is helping close the gaps between information, insights and action,” Ashley said.
