Partner Blog | Building AI-ready applications on open, enterprise-grade Azure platforms

Microsoft Build 2026 reinforced an undeniable truth for businesses transitioning from AI trials to real-world use: AI’s effectiveness hinges on a robust foundation. To thrive, companies require modern databases, well-governed data, secure infrastructures, and developer experiences that ensure AI-driven applications perform reliably at scale.

The recent public previews of Azure HorizonDB and Azure Linux, alongside the full availability of Azure Container Linux, showcase Microsoft’s significant investment in open platforms, fostering developer ecosystems and providing the cloud infrastructure that enterprises need for AI-ready applications. This signifies a noticeable shift: open-source strategies are becoming central to enterprise modernization, innovation, and growth.

These developments simplify how partners can align customer AI objectives with the essential open, secure, enterprise-ready platforms required for production. They also open doors for timely discussions around data modernization, the development of AI-compatible applications, secure infrastructures, and cloud-native operations.

Highlights from Build 2026

Azure HorizonDB: A New Benchmark for AI-Native, Enterprise PostgreSQL

Azure HorizonDB is now in public preview as an innovative PostgreSQL cloud database service tailored for optimal performance and scalability to meet the modern demands of AI applications.

For business leaders contemplating data strategies, this is a significant development. Organizations must modernize outdated databases while accommodating intelligent applications without compromising resilience, governance, or developer productivity.

Azure HorizonDB is crafted to tackle these challenges. It automatically scales storage for larger enterprise workloads, adjusts compute resources across primary and replica nodes, and integrates AI functionalities directly within the database framework.

What stands out is Azure HorizonDB’s ability to streamline architecture while fostering innovation. Enhanced features, such as advanced filtered vector search, in-database AI model management, integration with Microsoft Entra ID, and GitHub Copilot support via a PostgreSQL extension for Visual Studio Code, elevate it beyond mere database enhancement.

Developers can leverage Microsoft 365 Copilot alongside live database contexts to create schema-aware SQL, examine database structures, optimise queries, and utilise HorizonDB-specific features, all without leaving Visual Studio Code. This system promotes the integration of open-source PostgreSQL, enterprise security, AI readiness, and a seamless developer experience in a single managed service.

For business leaders, this can pave the way to faster data estate modernization and tangible business results. In tests conducted within Microsoft’s environment, Azure HorizonDB demonstrated performance that was three times quicker than traditional self-managed PostgreSQL. This announcement also provides partners with a valuable opportunity to engage customers in PostgreSQL upgrades, intelligent application architecture, migration strategies, performance improvements, and AI-oriented development.

Azure Linux: Open-Source Infrastructure at Enterprise Scale

The announcement of Azure Linux’s public preview is crucial for leaders prioritising cloud efficiency, security, and consistent platforms. Linux is a cornerstone of contemporary digital infrastructure, with two-thirds of customer cores in Azure utilising it. Azure Linux now offers a first-party Linux distribution, specifically designed for Azure, and is accessible for Azure virtual machines (VMs), VM scale sets, and container images.

The introduction of Azure Container Linux (ACL), a secure, immutable host for containers, aims to help platform teams manage Kubernetes workloads at scale through Azure Kubernetes Service (AKS). By promoting Azure Linux as a prominent first-party platform option, Microsoft equips organisations with an operating system designed for modern workloads, including VMs, containers, and AI systems.

This is significant because the choices we make regarding infrastructure increasingly influence agility, security, and costs. Azure Linux embodies Microsoft’s commitment to secure-by-default design, continuous servicing, and closer alignment between the operating system and the Azure platform. For businesses, this leads to streamlined operations and a more predictable foundation for cloud-native applications.

These announcements reinforce what the Microsoft partner ecosystem and user feedback have indicated for a long time: open-source infrastructure is a vital component of Microsoft’s cloud strategy, as over 65% of customer cores in Azure rely on Linux.

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