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Microsoft Agent 365 SDK - Agents with Identity and Observability

The Microsoft Agent 365 SDK connects agents you already own to Microsoft Agent 365, adding identity, observability, governed Work IQ tooling and notifications.

developer-tools
Pricing Model Used as part of Microsoft Agent 365; terms per vendor / see official documentation
Availability Packages for Python, JavaScript and .NET; some capabilities are limited to tenants in the Frontier preview program
Data Sovereignty Access to Microsoft 365 workloads runs through governed MCP servers under admin control
Reliability SLA per vendor / see official documentation SLA

What is the Microsoft Agent 365 SDK?

The Microsoft Agent 365 SDK connects an agent you already own and run to Microsoft Agent 365. Use it when your agent needs code-level access to Agent 365 capabilities such as agent identity, observability, governed Work IQ tools or notifications.

Agents on platforms with built-in Agent 365 integration, and agents imported through registry sync, already appear in the Agent 365 inventory. Add the SDK when the agent needs capabilities that the platform path doesn’t provide and that you must configure in code. Because platform integrations evolve, confirm the current platform guidance before deciding that the SDK is required.

Core Features

Identity: A Microsoft Entra-backed agent identity enables secure authentication and controlled access to tools and data. Agents that need their own user account and mailbox are available only to tenants participating in the Frontier preview program.

Observability: Telemetry is emitted through OpenTelemetry, producing audited, traceable interactions, inference events and tool usage.

Tooling: The agent invokes governed Work IQ Model Context Protocol servers to reach Microsoft 365 workloads such as Mail, Calendar, Word, SharePoint and Teams under admin control.

Notifications: The agent receives and responds to messages from Teams, Outlook, Word comments and email. This capability requires an agent user account and is available only to tenants in the Frontier preview program.

Modular adoption: Capabilities are selected individually. You install only the packages for the capabilities you choose and configure the corresponding identity, permissions and runtime integration.

Typical Use Cases

Governance for third-party frameworks: An agent built on LangChain, Semantic Kernel or custom code gains enterprise identity and auditability without being rebuilt.

Traceable agent activity: Observability delivers telemetry for agent invocations, tool calls and model inference.

Controlled access to Microsoft 365 data: Governed MCP servers give the agent access to mail, calendar, documents and Teams content under admin control.

Interacting like a team member: The agent responds to mentions in Word comments, Teams or email, provided the prerequisites are met.

Benefits

  • Existing agents can be onboarded without changing model, framework or hosting
  • Selective adoption of individual capabilities rather than the entire SDK surface
  • Consistent identity and auditability across agents built on different frameworks
  • Governed, admin-controlled access to Microsoft 365 workloads
  • Language-specific packages for Python, JavaScript and .NET

Integration with innFactory

As a Microsoft Solutions Partner, innFactory supports you in connecting existing agents to Microsoft Agent 365: selecting the required capabilities, setting up the agent identity blueprint and permissions in Microsoft Entra, integrating observability into your monitoring, and establishing governance processes.

Contact us for a no-obligation consultation on agent governance on Microsoft platforms.

Typical Use Cases

Give an existing agent a Microsoft Entra-backed agent identity
Emit telemetry through OpenTelemetry for audited, traceable interactions
Establish governed access to Microsoft 365 workloads such as Mail, Calendar, Word, SharePoint and Teams
Let agents receive and respond to messages from Teams, Outlook, Word comments and email
Bring agents built on any framework into Agent 365 governance

Technical Specifications

0th Four capabilities: identity, observability, tooling and notifications, selectable individually
1st Identity: a Microsoft Entra-backed agent identity for secure authentication and controlled access to tools and data
2nd Observability: telemetry through OpenTelemetry producing audited, traceable interactions, inference events and tool usage
3rd Tooling: invoking governed Work IQ MCP servers to reach Microsoft 365 workloads under admin control
4th Notifications: receiving and responding to messages from Teams, Outlook, Word comments and email
5th Agent user accounts and mailboxes, and the notifications capability, are available only to tenants participating in the Frontier preview program
6th Identity, tooling and notifications use an agent identity blueprint as their Entra foundation; observability can alternatively use a standard Entra app registration
7th Language-specific packages for Python (PyPI), JavaScript (npm) and .NET (NuGet)
8th Onboarding in four stages: register, extend, validate and operate, optionally guided by Agent 365 Skills from a supported coding assistant
9th The SDK doesn't build, host, deploy, orchestrate or execute agents; model, framework and host remain your responsibility

Frequently Asked Questions

What does the Microsoft Agent 365 SDK do?

The Microsoft Agent 365 SDK connects an agent you already own and run to Microsoft Agent 365. Use it when your agent needs code-level access to Agent 365 capabilities such as agent identity, observability, governed Work IQ tools or notifications.

How does it differ from the Microsoft 365 Agents SDK?

According to Microsoft, these are different products. The Microsoft Agent 365 SDK doesn't build agents; it extends an agent that already exists to add identity, observability, tooling and notifications. The Microsoft 365 Agents SDK is a framework for building conversational agents. The two work together.

Which frameworks and hosts are supported?

The SDK runs alongside your existing architecture. Microsoft names LangChain, Microsoft Agent Framework, Semantic Kernel, the OpenAI Agents SDK, the Claude Agent SDK or custom code as frameworks or runtimes, and Azure, AWS, Google Cloud or on-premises as hosts. The SDK doesn't host or deploy your agent.

Which capabilities require the Frontier preview program?

Agents that need their own user account and mailbox are available only to tenants participating in the Frontier preview program. The same applies to the notifications capability, which requires an agent user account.

What does onboarding look like?

The integration follows four stages: register creates the agent identity blueprint and the agent identity in Microsoft Entra, extend adds the capabilities your agent needs, validate confirms identity, telemetry, tool access and message handling, and operate uses Agent 365 controls to govern and audit the connected agent. You can complete these steps manually or use Agent 365 Skills from a supported coding assistant.

Note: All product information on this page has been compiled with care, but is provided without guarantee and may be outdated or incomplete. Cloud services evolve rapidly — features, pricing, SLAs, and availability change frequently. Authoritative and up-to-date information can only be found on the official product page of Azure (official documentation). This page does not represent an offer by Azure.

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