IBM's Azure Foundry Enterprise Kit

Architecture

Enterprise Agent Governance Fabric: The only enterprise governance framework that spans all 7 architectural planes of the Microsoft AI Agent Platform Stack — from infrastructure and MCP fleet governance through execution and observability to the Agent 365 control plane. Every plane is secured by 17 Zero Trust controls that enforce verify-explicitly, least-privilege, and assume-breach at every boundary.

For an at-a-glance visual overview, see the Reference Architecture page with 3 ASCII reference diagrams covering high-level topology, security zones, and data flow.

Architecture Overview

The diagram below shows the 7-layer architecture spanning from the Agent 365 Control Plane through Infrastructure Services to the Business Value Observability Plane — with 17 Zero Trust controls woven across every boundary.

Click any architectural layer to explore its components and Zero Trust controls.

Azure Foundry Enterprise Kit — 7-Layer Architecture: Agent 365 Control Plane, Agent Execution Plane, Governance & Observability Plane, Trust & Certification Plane, Shared Infrastructure Services, MCP Fleet Governance Plane, and Business Value Observability Plane

Figure 1 — Azure Foundry Enterprise Kit: 7-layer architecture with 17 Zero Trust controls

Zero Trust Security — The Foundation

Every architectural plane is secured by Zero Trust controls — no implicit trust, no shortcuts, no exceptions.

The Enterprise Kit implements 17 Zero Trust controls (ZT-01 to ZT-17) that map to each architectural layer. Every agent identity is verified, every tool call is authorized, every data boundary is enforced, and every decision is audited. This is not a bolt-on — Zero Trust is woven into the infrastructure, execution, governance, and MCP planes from day one.

Zero Trust by Architectural Layer

LayerZT ControlsWhat's EnforcedValue
Control Plane
(Agent 365)
ZT-01, ZT-09Entra Agent Identity, RBAC role assignments, Azure Policy governance initiativeEvery agent has a verified identity; no anonymous agents reach production
Execution Plane
(Foundry + Agent Framework)
ZT-02, ZT-03, ZT-05, ZT-06, ZT-07API Gateway JWT validation, AI Gateway content safety, runtime interceptor kill switch, model gateway RBAC, A2A AgenticIdentity authEvery request is authenticated, every response is filtered, every tool call passes through the interceptor
Governance Plane
(Observability)
ZT-08, ZT-09, ZT-13, ZT-14OTel telemetry with PII masking, Azure Policy enforcement, evaluation dataset protection, continuous anomaly detectionCompliance evidence is tamper-proof; anomalies trigger automatic remediation
Trust Plane
(Certification)
ZT-04, ZT-10, ZT-11Key Vault CMK encryption, Cosmos DB geo-fencing + data residency, memory retention isolationAudit trails are cryptographically signed; data never leaves approved regions
Infrastructure
(Shared Services)
ZT-03, ZT-04Private endpoints for all PaaS services, VNet isolation with 5 subnets, NSG rules, private DNS zonesNo public internet exposure; all traffic stays within the enterprise network boundary
MCP Fleet
(WS-9)
ZT-07, ZT-12, ZT-15MCP server auth (5 methods), transport security (TLS + VNet), tool-level authorization per agent class, APIM rate limiting, supply chain validationEvery MCP tool call is authenticated, authorized, rate-limited, and auditable

17 Zero Trust Controls

ControlScopeEnforcement
ZT-01IdentityManaged Identity hierarchy, Entra Agent Identity, per-agent RBAC, no shared credentials
ZT-02API GatewayAPIM JWT validation, rate limiting (60 RPM/tool, 200 RPM/agent), IP filtering (RFC 1918), header sanitization
ZT-03AI GatewayContent Safety filtering, AI Search private endpoint, prompt injection detection, DLP integration
ZT-04Secrets & KeysKey Vault with CMK encryption, certificate rotation, private endpoint, soft-delete protection
ZT-05Runtime InterceptorKill switch with policy triggers, token budget enforcement, anomaly-based halt, Decision Ledger logging
ZT-06Model GatewayModel deployment RBAC, endpoint protection, inference rate limiting, model version pinning
ZT-07Agent CommunicationA2A AgenticIdentity auth, MCP gateway authorization, identity propagation, egress control
ZT-08TelemetryOTel pipeline with PII masking, field-level redaction, App Insights private endpoint
ZT-09Azure PolicyGovernance initiative with 12+ policy definitions, tag enforcement, resource compliance
ZT-10Data BoundaryCosmos DB geo-fencing, data residency enforcement, cross-region replication controls
ZT-11Memory GovernanceRetention policies (operational vs. compliance), user-scoped isolation, memory purge on session end
ZT-12ToolboxTool allowlisting per agent class, version governance, approval tiers (read=auto, write=require)
ZT-13Evaluation SecurityEval dataset protection, result integrity validation, ground truth access control
ZT-14Continuous MonitoringAnomaly detection with configurable thresholds, alert-triggered remediation workflows
ZT-15MCP SecurityServer auth (5 methods), TLS 1.2+ transport, VNet-only ingress, per-agent session limits, supply chain validation
ZT-16Compliance AutomationPolicy engine integration, automated evidence collection, continuous compliance scoring, framework mapping (NIST/EU AI Act/SOC 2)
ZT-17Data ResidencySovereign data boundary enforcement, geo-fencing validation, cross-region replication controls, data-residency module with jurisdiction-specific policies

Zero Trust Request Flow

Watch a request traverse 9 security boundaries — from identity verification through tool execution to the tamper-evident Decision Ledger.

Azure Services in the Request Flow

Each step in the Zero Trust flow is powered by specific Azure services. Click a layer to see the services and their roles.

7-Plane Architecture

The architecture follows a layered governance model with 7 distinct planes. Each plane has clear responsibilities, security boundaries, and integration points. The diagram below maps to these planes top-to-bottom.

Plane 1 — Agent 365: Enterprise Governance Control Plane

Agent 365 (GA May 2025) is Microsoft's enterprise governance control plane for all AI agents. The kit enhances Agent 365 with enterprise-grade controls that Microsoft does not provide natively — cryptographic audit trails, automated certification pipelines, and cross-agent policy topology.

ComponentPurposeKit Integration
Agent Registry (4 types)Central catalog of all AI agents across the organizationagent365_publisher.py auto-registers agents with governance metadata
Work IQ MCP CatalogCalendar, Mail, Teams signals as MCP toolsa365-mcp-permissions.yaml configures Work IQ MCP access per agent class
A365 SDKRuntime observability + notificationsa365-bootstrap.sh initializes A365 config + observability bridge
Cross-Cloud RegistryAWS/GCP agent sync for multi-cloud governancePlanned (WS-1.7) — config schema defined, implementation in progress

Right-side endpoints: Foundry Agent Applications (ARM-native) → Agent Publishing & Lifecycle → Versioned Deployments / RBAC → Responses API → Activity Log → A2A Endpoint

Plane 2 — Agent Execution Plane

The runtime layer where AI agents execute. Built on Azure AI Foundry Agent Service and Microsoft Agent Framework with the Foundry Toolbox, Agent Memory, Guardrails, and A2A Protocol.

ComponentKey FeaturesKit Assets
Azure AI Foundry Agent Service
(Responses API)
Entra RBAC, private endpoints, model deploymentsagent_client.py, foundry-project.bicep
Microsoft Agent FrameworkGraph Workflows, Session State, Middleware, MCP ClientsPython + TypeScript SDK starters with OTel middleware
Foundry Toolbox (Preview)MCP-compatible, versioned registry, Entra authtoolbox_manager.py, toolbox_lifecycle_manager.py, 5 YAML configs
Agent Memory (Preview)Chat Summary Store, User Profile Store, user-scoped isolationmemory-store-definitions.yaml (20-msg trigger, retention policies)
Foundry GuardrailsContent Safety, PII Detection, Prompt Attacks, Task Adherenceguardrails_manager.py, guardrails.bicep, content-safety.bicep
A2A Protocol (v0.3)Agent Cards, Skill Discovery, AgenticIdentity Auth, Delegationa2a_manager.py, A2A tool template, test suite

Security: ZT-02 (API Gateway), ZT-03 (AI Gateway), ZT-05 (Runtime Interceptor), ZT-06 (Model Gateway), ZT-07 (A2A Auth)

Plane 3 — Governance & Observability Plane

Fleet-wide monitoring, compliance enforcement, and security integration. OTel traces, metrics, and logs flow from the execution plane into this layer.

ComponentPurposeKit Assets
App Insights + DashboardsDistributed tracing, custom dashboards, alert rulesapp-insights.bicep, 2 Azure Monitor workbooks
Log Analytics + KQLFleet-wide query and analysis6 KQL packs: agent monitoring, tracing, MCP fleet, gateway analytics, multi-agent correlation, tool call analytics
Foundry Control PlaneFleet monitoring, compliance enforcement, bulk remediation, Defender/Purview/Entra integration14 remediation workflows, kill switch queries, observability bridge
Microsoft Defender for AI AgentsThreat detection, security alerts, incident responsePlanned (WS-5.1) — Defender integration for AI agent threat surface
Azure PurviewData catalog, DLP, sensitivity labelsData boundary policy, analyst toolbox Purview search, DLP provider config

Security: ZT-08 (OTel + PII masking), ZT-09 (Azure Policy), ZT-13 (Eval security), ZT-14 (Continuous monitoring)

Plane 4 — Trust & Certification Plane (Proprietary)

proprietary governance overlay that converts runtime evidence into auditable, certifiable artefacts. Evidence streams flow from the observability plane into the trust plane for compliance processing.

ComponentPurposeCompliance Mapping
Decision Narrative LedgerHash-chained audit trail in Cosmos DB — every agent decision recorded with SHA-256 chainNIST AI RMF: Manage
Agent Scorecard CompilerPDF release dossier combining eval results, policy compliance, trust metricsEU AI Act: Technical Documentation
Certification PipelineBronze → Silver → Gold automated promotion with scorecard-based gate logicInternal: Release Governance
Cross-Agent Policy GraphInter-agent permission topology with over-privilege detection and cascade violation analysisResponsible AI: Transparency
Agent App PublisherARM-native agent publishing with governance metadata, container registry pushAzure CAF: Resource Management
Guardrails ManagerEnterprise presets for Foundry Guardrails content safety configurationContent Safety: Risk Management
PII MaskerTelemetry + log sanitizer — Presidio-based detection with field-level redactionGDPR / Data Protection

Security: ZT-04 (Key Vault CMK signing), ZT-10 (Data boundary geo-fencing), ZT-11 (Memory retention isolation)

Plane 5 — Shared Infrastructure Services

Foundational Azure PaaS services shared across all planes. Each service is provisioned with private endpoints, managed identities, and encryption at rest.

ServicePurposeSecurity
Azure AI SearchRAG grounding with semantic ranker, configurable replicas and partitionsPrivate endpoint, managed identity access, ZT-03
Cosmos DBDecision Ledger storage + Agent Memory persistence (serverless)Geo-fencing, CMK encryption, private endpoint, ZT-04/10
Key VaultSecrets management + MCP auth credential rotation + CMK keysSoft-delete, purge protection, private endpoint, ZT-04
Entra IDRBAC + 3 User-Assigned Managed Identities (agent, deploy, monitor)Entra Agent Identity blueprints, per-agent RBAC, ZT-01

Plane 6 — MCP Fleet Governance Plane (WS-9)

End-to-end lifecycle management for MCP servers — the only enterprise governance framework that treats MCP infrastructure as a governed fleet with the same rigor applied to agents themselves.

ComponentPurposeKit Asset
Toolbox Lifecycle ManagerVersion create → test → promote → deprecate → cleanup with approval gatestrust-extensions/toolbox_lifecycle_manager.py
Private Tool CatalogAzure API Center-backed registry for MCP server discovery and governanceinfra/bicep/modules/api-center.bicep
MCP Auth Provider5 Foundry MCP auth methods with token caching and Key Vault rotationsdk-starters/python/mcp_auth_provider.py
MCP Server HostingAzure Functions (event-driven) + Container Apps (stateful/VNet) templatesadapters/hosting/azure-functions/, adapters/hosting/container-apps/
Toolbox Endpoint ResolverConsumer vs. developer endpoint routing with APIM gateway rewritingsdk-starters/python/toolbox_endpoint_resolver.py
MCP Fleet Dashboard12 KQL queries: fleet health, tool usage, rate limiting, error classification, latency heatmapobservability/kql/mcp-fleet-dashboard.kql

Security: ZT-07 (MCP gateway auth), ZT-12 (Toolbox governance), ZT-15 (MCP security — auth, transport, tool-level authz, supply chain)

Plane 7 — Business Value Observability Plane (AI Value Realization)

The control plane for AI value realization — answers “is the agent delivering measurable business value?” through per-interaction ROI computation, business scorecards, drift detection, and automated remediation.

ComponentPurposeKit Asset
Business Value SchemaCanonical schema for value metrics, scorecard templates, drift rules, maturity modelobservability/schema/business-value-schema.json
ROI Computation EnginePer-interaction cost_saved, time_saved, efficiency_ratio from manifest baselinessdk-starters/python/business_value_tracker.py
Scorecard Compiler5 templates (service, sales, analyst, compliance, workflow) with A–F gradingobservability/schema/business-value-schema.json
Drift Detection8 rules monitoring containment, cost, satisfaction, ROI, and adoption trendsobservability/remediation-workflows.yaml
Executive DashboardAzure Monitor Workbook with 15+ tiles for business stakeholdersdashboards/business-value-dashboard.json
KQL Query Library16 production-ready queries for value analytics in App Insights / Log Analyticsobservability/kql/business-value-queries.kql

Data flow: Governance Plane (OTel spans) → Value Plane (ROI + scorecards) → Trust Plane (certification gates)

Cross-Cutting Components

These components span multiple planes and are not confined to a single architectural layer:

7 Enterprise MCP Adapters

AdapterSystemAuth
ServiceNowITSM — incidents, changes, knowledgeOAuth 2.0 + Redis cache
SAP S/4HANAERP — purchase orders, materials, goods receiptOAuth 2.0 client credentials
SalesforceCRM — records, opportunities, contactsOAuth 2.0 JWT bearer
Microsoft GraphM365 — users, mail, Teams, calendarEntra Managed Identity
WorkdayHCM — employee records, org structureOAuth 2.0 + SAML
Internal APICustom REST APIs via APIM gatewayManaged Identity / API key
MCP Server HostingAzure Functions + Container Apps templatesManaged Identity / Entra Agent Identity

6 Agent Templates

BlueprintUse CaseToolbox Approval
Knowledge AgentRAG-based Q&A, document search, knowledge synthesisAuto
Operations AgentIncident management, monitoring, system healthConditional
Policy AgentCompliance checking, policy evaluation, auditRequire
Workflow AgentCross-system orchestration, approvals, data syncRequire
Analyst AgentData analysis, report generation, trend detectionAuto

Evaluation Harness

  • Built-in Evaluators — Accuracy, groundedness, relevance, coherence, fluency via azure-ai-evaluation
  • Custom Evaluators — Domain-specific evaluation plugins with YAML configuration
  • CI/CD Integration — GitHub Actions + Azure DevOps pipelines with release gates (pre_release, canary, regression)
  • Continuous Evaluation — Scheduled evaluation with sampling and cron triggers (continuous-eval.bicep)

Infrastructure Modules (28 Bicep)

Subscription-scoped Bicep deployment with 19 composable modules following Azure CAF Landing Zone patterns. Each module maps to one or more Zero Trust controls:

#ModuleResourcesZT
1managed-identities.bicep3 User-Assigned MI + RBAC assignmentsZT-01
2network.bicepVNet, 5 subnets (incl. MCP), NSGs, 6 Private DNS ZonesZT-03/15
3key-vault.bicepKey Vault + CMK encryption + private endpointZT-04
4app-insights.bicepApplication Insights + Log Analytics WorkspaceZT-08
5ai-search.bicepAzure AI Search with semantic rankerZT-03
6cosmos-db.bicepCosmos DB (Decision Ledger + Memory databases)ZT-04
7foundry-project.bicepAI Foundry Hub + Project + 3 model deploymentsZT-01
8agent-application.bicepFoundry Agent Applications (ARM resource)ZT-04
9guardrails.bicepFoundry Guardrails content safety configurationZT-04
10azure-policy.bicepAzure Policy governance initiativeZT-09
11entra-agent-identity.bicepEntra Agent Identity BlueprintZT-01
12api-management.bicepAPIM AI Gateway (JWT, token limits, caching)ZT-02/06/07
13content-safety.bicepAzure AI Content Safety resourceZT-03
14runtime-interceptor.bicepRuntime Interceptor Container App + kill switchZT-05
15toolbox.bicepFoundry Toolbox governance (tool allowlisting)ZT-12
16continuous-eval.bicepContinuous Evaluation pipeline schedulingZT-14
17api-center.bicepAPI Center — Private MCP Tool CatalogZT-12/15
18function-mcp.bicepAzure Functions MCP server hostingZT-15
19container-app-mcp.bicepContainer Apps MCP server hostingZT-15

Data Flow

  1. User or system triggers agent via Azure AI Foundry Agent API (Responses API)
  2. Runtime Interceptor (ZT-05) validates identity, policy, and content safety before execution
  3. Agent selects tools from Foundry Toolbox (filtered by per-agent-class allowlist policy)
  4. MCP adapter calls enterprise system (ServiceNow, SAP, etc.) via APIM AI Gateway (ZT-02) with rate limiting
  5. Response passes through Foundry Guardrails (content safety + PII masking + prompt attack defense)
  6. Decision is recorded in the Decision Ledger (Cosmos DB) with SHA-256 hash chain
  7. Telemetry emitted to App Insights via OTel with PII masking (ZT-08)
  8. Agent registered in Agent 365 for cross-platform governance and fleet observability
  9. Continuous Evaluation runs scheduled assessments; scorecard compiler updates trust score
  10. Certification pipeline evaluates gate criteria — Bronze → Silver → Gold promotion

9 Innovation Differentiators

proprietary innovations that go beyond what Azure provides natively:

  1. Unified Governance — Single fabric across Foundry, Copilot Studio, Agent 365, third-party, and cross-cloud agents
  2. Cryptographic Decision Ledger — Tamper-evident, hash-chained audit trail (NIST/EU AI Act compliant)
  3. Cross-Agent Policy Graph — Compliance topology with cascade violation detection and over-privilege analysis
  4. Autonomous Certification Pipeline — Bronze/Silver/Gold gates for automated environment promotion
  5. Kill Switch with Policy Triggers — Runtime interceptor halts agents on token budget, policy violation, or anomaly
  6. Three-IQ Convergence — Foundry IQ + Work IQ + Fabric IQ intelligence integration
  7. Dual-Mode Memory Governance — Operational vs. compliance memory with separate retention policies
  8. Production-Readiness Scorecard — PDF release dossiers as automated release gates
  9. Enterprise MCP Fleet Governance — End-to-end lifecycle: versioning, auth, hosting, catalog, observability

Extension Framework (Layer 2)

The kit's extension framework provides modular governance capabilities. Every extension follows a common contract: ExtensionBase subclass, validate_config(),health_check(), zero hardcoded secrets (DefaultAzureCredential), and OTel spans under afek.extensions.<name>.

ExtensionPurposeStandards
Compliance MapperFramework mapping, gap analysis, evidence collectionNIST AI RMF, EU AI Act, SOC 2
Data ResidencySovereignty validation, boundary enforcementGDPR, PIPEDA, OSFI B-13
Drift DetectionModel output drift analysis, statistical testsNIST MEASURE 2.5, EU AI Act Art.9
Incident ResponseAutomated incident triage, escalation, remediationNIST MANAGE 4.1, Azure WAF OE:08
ExplainabilityDecision audit trails, fairness analysisEU AI Act Art.13, NIST MAP 2.3
Third-Party RiskVendor assessment, dependency scanningSOC 2 CC9.2, OSFI B-10
DR FailoverRTO/RPO definitions, recovery playbooksAzure WAF RE:09
ReportingCompliance reports, evidence packagingSOC 2, ISO 27001
Sovereign KeysKey rotation automation, sovereignty policiesNIST SP 800-57
Confidential ComputeTEE attestation, confidential agent deploymentAzure CC, SEV-SNP
Fine-TuningSafety evaluation, training data auditNIST MEASURE 2.6

IQ Accelerators (Layer 2)

AcceleratorPurpose
Foundry Control PlaneRisk rating, deployment gating, policy enforcement
Foundry IQIntelligence queries, trend analysis, anomaly detection
Work IQTask analysis, workload optimization, capacity forecasting
Fabric IQData pipeline analysis, lineage checking, quality assessment
Red TeamingAdversarial attack simulation, resilience scoring
Lifecycle EngineAgent lifecycle state machine (dev → staging → prod → retired)

Industry Packs (Layer 3)

Jurisdiction-specific compliance mappings, guardrails, agent templates, and data residency configurations. Each pack follows a standard structure with a pack-manifest.yaml.

PackJurisdictionFrameworksStatus
Banking CanadaCanadaOSFI B-13, PIPEDA, AML/ATF✅ Complete
Banking EUEuropean UnionEBA, DORA, GDPR, MiCA📋 Planned
Banking USUnited StatesOCC, FFIEC, SOX, GLBA📋 Planned
HealthcareMulti-regionHIPAA, FDA 21 CFR Part 11📋 Planned
GovernmentMulti-regionFedRAMP, ITAR, Protected B📋 Planned

Standards Alignment

FrameworkHow the Kit Aligns
Azure CAFDeploy → Build → Govern lifecycle; subscription-scoped IaC; Landing Zone patterns
Azure WAFSecurity (Zero Trust), Reliability (geo-redundancy), Cost (SKU profiles), Ops (IaC/CI)
Microsoft Responsible AI v2Foundry Guardrails, PII Masker, Decision Ledger, Eval Packs
Zero Trust for AI17 controls: verify explicitly, least-privilege, assume breach — mapped to every plane
NIST AI RMF 1.0Map (manifest) → Measure (eval) → Manage (policy) → Govern (ledger)
EU AI Act (High-Risk)Audit trail, human oversight, bias monitoring, technical documentation

Multi-LOB Platform Engineering

Enterprise-scale isolation: The kit supports multi-LOB (Line of Business) deployment with a hub-spoke architecture. Each LOB gets its own resource group, spoke VNet, identity, Key Vault, Cosmos containers, AI Search index, and Foundry Project — all sharing the centralized platform hub for cost efficiency.

Hub-Spoke Architecture

ComponentHub (Shared)Spoke (Per-LOB)
Resource Grouprg-foundry-platform-prodrg-foundry-banking-prod
NetworkingHub VNet (10.0.0.0/16) + FirewallSpoke VNet (10.x.0.0/16) + NSGs
IdentityPlatform UAMILOB UAMI + 6 RBAC roles
Key VaultShared platform KVLOB-isolated KV + PE
DataShared Cosmos accountLOB-prefixed containers
AI SearchShared search serviceLOB-specific index
AI FoundryFoundry HubLOB Foundry Project
CostPlatform budgetLOB-scoped budget + alerts

Isolation Guarantees

  • Network: Spoke-to-spoke traffic blocked by NSG deny-all rules; all cross-spoke routing forced through hub firewall
  • Identity: Per-LOB UAMI scoped to its own resource group; Entra group-based RBAC for Owner, Developer, and Viewer roles
  • Data: LOB Cosmos containers use RBAC (no shared keys); AI Search indexes are LOB-scoped with data contributor restricted to LOB UAMI
  • Secrets: Dedicated Key Vault per LOB with purge protection; cross-LOB access impossible by RBAC design

Self-Service Onboarding

New LOBs are onboarded in under 30 minutes via scripts/onboard_lob.py or the afek lob onboard CLI command. The process automates CIDR allocation, Bicep deployment, RBAC assignment, and LOB registry updates. See the Deployment Guide for detailed steps.