DavidGadyan

Cloud Architecture

Azure, Fabric, Databricks or Foundry: Which Microsoft Service to Choose?

By David Gadyan · Published · 22 min read

Four logo tiles, Azure, Microsoft Fabric, Azure Databricks and Microsoft Foundry, on a dark grid with the title "Azure, Fabric, Databricks or Foundry? Which Microsoft service to choose, and when"

A client who runs on Microsoft 365 asks which Azure service to use for data and AI. The answer is four products with one job each: Azure is the cloud, Microsoft Fabric the analytics platform, Azure Databricks the Spark and ML lakehouse, Microsoft Foundry the platform for LLM apps and agents. This post compares them in tables, maps them to AWS and Google Cloud, and ends with a decision guide.

Over the past two weeks I compared Snowflake with Databricks, turned a Databricks course into an interactive mind map and shipped an Azure document-intelligence automation. The question that followed each time came from companies that already run on Microsoft: which Azure service do we actually need: Fabric, Databricks or Foundry?

This post answers it in three steps: why a company picks Azure over AWS or Google Cloud, what each Microsoft platform is for, and which combinations work in real AI projects. Every product name was checked against Microsoft Learn, the AWS documentation and the Google Cloud release notes on 6 November 2026. The names change often, so the sources at the end carry the current state.

The short answer. Azure is the cloud. Microsoft Fabric is the SaaS platform for data engineering, analytics and BI. Azure Databricks is the lakehouse for large-scale Spark, Delta Lake and machine learning. Microsoft Foundry is the platform for LLM applications and AI agents. Azure AI Search is the retrieval layer and Azure Machine Learning the classic ML lifecycle. They complement each other, and none of them replaces Azure.

Why would a company choose Azure over AWS or Google Cloud?

A company chooses Azure when its identity, documents and reporting already live with Microsoft. Microsoft Entra ID handles the logins, Microsoft 365 and SharePoint hold the documents, Teams is where people work and Power BI is where the numbers are read. An AI project on Azure plugs into that estate with managed identities and one governance model instead of federating three clouds.

Service by service, the three clouds do comparable jobs. This table maps the core Azure services to their AWS and Google Cloud counterparts.

CategoryAzureAWSGoogle Cloud
Virtual machinesAzure Virtual MachinesEC2Compute Engine
Object storageBlob Storage, ADLS Gen2S3Cloud Storage
Data warehouseFabric Warehouse (Synapse before it)RedshiftBigQuery
KubernetesAKSEKSGKE
Serverless functionsAzure FunctionsLambdaCloud Functions
Serverless containersContainer AppsECS on FargateCloud Run
Managed SQLAzure SQLRDSCloud SQL
NetworkingVirtual NetworkVPCVPC
IdentityEntra IDIAMIAM
SecretsKey VaultSecrets ManagerSecret Manager
MonitoringAzure MonitorCloudWatchCloud Monitoring
Document OCRDocument IntelligenceTextractDocument AI

The jobs match; the pricing, the architecture, the integrations and the limits do not. Choose the cloud for the estate you have and the skills your team has, then map the services with a table like this one.

What pulls a company towards Azure, and what each pull gives an AI project:

Pull towards AzureWhat it gives an AI project
Microsoft Entra IDUsers, groups, managed identities and RBAC reused by Foundry, Fabric, Databricks and AI Search
Microsoft 365, SharePoint, TeamsThe documents and conversations most enterprise assistants need to read
Power BIThe reporting layer business users already open; Fabric feeds it through Direct Lake
Microsoft FoundryMore than 10,000 models from Microsoft, OpenAI, Anthropic, Meta and others in one catalog under Azure governance
An existing enterprise agreementOne bill, one support contract, one compliance review

What is the difference between Azure, Microsoft Fabric, Azure Databricks and Microsoft Foundry?

They sit at different levels. Azure is the infrastructure: compute, storage, networking and identity. Microsoft Fabric and Azure Databricks are data platforms that run on that infrastructure. Microsoft Foundry is an AI application platform that runs on it too. Azure AI Search and Azure Machine Learning are specialised services beside them. Every one of them is complementary; the mistake is to treat Foundry as a replacement for Databricks or Fabric.

One job each: Foundry, Fabric, Databricks, Azure AI APPLICATIONS AND AGENTS Microsoft Foundry Foundry Models · Agent Service · Foundry Tools · Foundry IQ · evaluations · control plane DATA PLATFORMS Microsoft Fabric SaaS: OneLake, Data Factory, Spark, Warehouse, Power BI Azure Databricks Spark, Delta Lake, Unity Catalog, MLflow, Mosaic AI Azure AI Search hybrid and vector retrieval for RAG Azure Machine Learning classic ML lifecycle: train, register, deploy CLOUD INFRASTRUCTURE Microsoft Azure VMs, AKS, Container Apps, Blob and ADLS Gen2, Virtual Network, Entra ID, Key Vault, Monitor Foundry is one layer inside Azure, not a replacement. Fabric and Databricks are the data layer; AI Search and Azure ML sit beside them.
Figure 1. One job each: Microsoft Foundry for AI applications, Microsoft Fabric and Azure Databricks for data, Azure AI Search and Azure Machine Learning beside them, Azure underneath.
PlatformMain responsibilityBuilt forAWS equivalentGoogle Cloud equivalent
Microsoft AzureCloud infrastructure: compute, storage, networking, identity, securityEveryoneAWSGoogle Cloud
Microsoft FabricData engineering, analytics, lakehouse and BI as one SaaSAnalysts, BI developers, data engineersRedshift with the Glue ecosystemBigQuery
Azure DatabricksLarge-scale data engineering, Spark, Delta Lake, ML, lakehouseData engineers, ML engineers, data scientistsDatabricks on AWS, EMRDatabricks on Google Cloud, Dataproc
Microsoft FoundryAI applications, LLMs, agents, evaluation, governanceAI engineers, application teamsAmazon BedrockGemini Enterprise Agent Platform
Azure Machine LearningClassic ML lifecycle: training, registry, deploymentData scientists, MLOpsSageMaker AIGemini Enterprise Agent Platform (formerly Vertex AI)
Azure AI SearchEnterprise search, hybrid and vector retrievalRAG and search applicationsOpenSearchAgent Search (formerly Vertex AI Search)

What is Microsoft Foundry?

Microsoft Foundry is Microsoft's platform for building, deploying, managing and monitoring AI applications and AI agents, built on Azure. It was called Azure AI Studio, then Azure AI Foundry; Azure AI Services became Foundry Tools. Foundry unifies agents, models and tools in one Azure resource with tracing, evaluations, role-based access control, networking and policies.

What you do in Microsoft Foundry:

  • Models. Browse and deploy more than 10,000 models from Microsoft, OpenAI, Anthropic, Meta and others from the Foundry Models catalog, with fine-tuning where the model supports it.
  • Agents. Build declarative prompt agents in the portal or the SDK, or hosted agents that run your own code (Microsoft Agent Framework, LangGraph, Semantic Kernel) as a container with a managed endpoint, all in Foundry Agent Service.
  • Tools and knowledge. Extend agents with built-in tools, memory and retrieval through the Foundry Toolbox; Foundry IQ (preview) is the knowledge layer that connects enterprise sources.
  • Evaluation and observability. Trace and evaluate agents and models, and monitor them in built-in dashboards.
  • Governance. Entra identity, RBAC, content filters, network isolation and Azure Policy through the Foundry control plane.

A worked example: an enterprise RAG chatbot over company PDFs.

  1. Upload the PDFs to Blob Storage.
  2. Extract the text and tables with Document Intelligence.
  3. Clean, transform and chunk the documents in Azure Databricks.
  4. Generate embeddings with a Foundry model.
  5. Store the vectors in Azure AI Search.
  6. Retrieve the relevant chunks for each question.
  7. Send the context to an LLM in Foundry and generate an answer with citations.

Foundry manages the model, the agent, the evaluation and the deployment parts of this workflow. Storage, extraction, data processing, networking and identity stay on other Azure services. Foundry does not replace Azure; it is one layer within the Azure architecture.

How does Microsoft Foundry compare with Amazon Bedrock and Gemini Enterprise Agent Platform?

They are the closest equivalents in the three clouds: functional matches, not one-to-one replacements. Amazon Bedrock is the AWS managed generative AI platform; Gemini Enterprise Agent Platform is the Google Cloud AI and agent platform that Vertex AI became part of on 22 April 2026.

CapabilityMicrosoft FoundryAmazon BedrockGemini Enterprise Agent Platform
Model catalogFoundry ModelsBedrock modelsModel Garden
LLM inferenceFoundry ModelsBedrock RuntimeGemini models
AI agentsFoundry Agent Service: prompt and hosted agentsBedrock Agents, AgentCore runtimeAgent Runtime (formerly Agent Engine)
RAGFoundry IQ and retrieval tools, Azure AI SearchKnowledge BasesRAG Engine, Vector Search, Agent Search
Fine-tuningFoundry ModelsBedrock model customizationModel tuning
EvaluationFoundry evaluations and tracingBedrock evaluationsEvaluation service
GovernanceFoundry control plane, Entra IDGuardrails and IAMModel Armor and IAM
Bring your own agent codeHosted agents in containersAgentCore runtimeAgent Runtime with the ADK or LangGraph

Which product names changed in 2025 and 2026?

Several of the names in these tables are less than a year old, and the old ones still appear in documentation, job posts and tutorials. This glossary maps the previous name to the current one so that the rest of the post reads the same way the vendors' pages do.

Previous nameCurrent nameVendor
Azure AI Studio, Azure AI FoundryMicrosoft FoundryMicrosoft
Azure AI ServicesFoundry ToolsMicrosoft
Assistants API (Agents v1)Responses API (Agents v2)Microsoft
Azure Synapse AnalyticsMicrosoft Fabric: Data Warehouse and Data EngineeringMicrosoft
Azure Data FactoryData Factory in Fabric; the Azure service still existsMicrosoft
Vertex AIPart of Gemini Enterprise Agent Platform since 22 April 2026Google Cloud
Vertex AI Agent EngineAgent RuntimeGoogle Cloud
Vertex AI SearchAgent SearchGoogle Cloud
Vertex AI RAG Engine, Vector Search, Model GardenRAG Engine, Vector Search, Model GardenGoogle Cloud
Amazon SageMakerSageMaker AI for the ML service; SageMaker is now the unified data and AI platformAWS
Bedrock AgentsBedrock Agents, with the AgentCore runtime for new agents; Bedrock Guardrails apply to AgentCore policies since June 2026AWS

What is Microsoft Fabric?

Microsoft Fabric is Microsoft's unified SaaS platform for collecting, storing, processing, analysing and visualising data. Instead of configuring a data lake, a warehouse, ETL pipelines, Spark clusters and a BI tool separately, Fabric delivers them as workloads over one logical lake, OneLake, with Power BI as the reporting layer. Microsoft Learn adds a detail that surprises Azure engineers: you do not need an Azure account to use Fabric.

Fabric workloadWhat it doesSimilar technology
OneLakeThe tenant-wide logical data lake every workload reads and writesADLS Gen2, S3, Cloud Storage
Data FactoryIngestion, pipelines and Dataflow Gen2 with more than 200 connectorsAzure Data Factory, AWS Glue
Data EngineeringApache Spark notebooks and jobs, lakehousesDatabricks, EMR, Dataproc
Data WarehouseSQL analytics over Delta tables, compute separate from storageSnowflake, Redshift, BigQuery
Data ScienceML experiments and models, integrated with Azure Machine LearningDatabricks ML, SageMaker AI
Real-Time IntelligenceStreaming ingestion, KQL databases and the Real-Time hubKinesis, Pub/Sub, Event Hubs
DatabasesSQL database in Fabric, plus mirroring of Azure SQL, Cosmos DB, Azure Databricks and Snowflake into OneLakeAzure SQL, RDS
Power BIReports and dashboards, Direct Lake over OneLakeTableau, Looker
Fabric IQ (preview)Ontology, Fabric Graph, data agent, operations agent, semantic modelsSemantic layers
OneLake Catalog and PurviewDiscovery, permissions, sensitivity labels, auditUnity Catalog, Dataplex

What is OneLake?

OneLake is the single logical data lake every Fabric tenant gets, built on Azure Data Lake Storage Gen2. Think of OneDrive for enterprise analytics data: one namespace that spans users, regions and clouds, organised in workspaces, lakehouses and warehouses, read by every Fabric workload without copies. Tables are stored as Delta Parquet, and OneLake exposes Iceberg metadata for Delta tables so that Iceberg readers see them without copying data.

Microsoft Fabric tenant
└── OneLake
    ├── Workspace: Finance
    │   ├── Lakehouse
    │   └── Warehouse
    ├── Workspace: Marketing
    │   └── Lakehouse
    └── Workspace: AI Projects
        └── Lakehouse

Two OneLake features matter for architecture. Shortcuts mount existing storage, including ADLS Gen2, Amazon S3 and Google Cloud Storage, as zero-copy references inside the lake. Mirroring replicates Azure SQL, Cosmos DB, Azure Databricks Unity Catalog and Snowflake into OneLake, so Fabric can read them without a pipeline.

How would you build a data pipeline in Fabric?

Take an e-commerce company that receives data from a Shopify API, PostgreSQL, Salesforce, SharePoint and CSV files, and wants one analytics platform.

  1. Create a Fabric workspace and a lakehouse inside it.
  2. Ingest the sources with Data Factory connectors on a schedule.
  3. Land the raw data as bronze tables in the lakehouse.
  4. Clean and deduplicate into silver tables with PySpark notebooks.
  5. Aggregate into business-ready gold tables and query them in SQL from the warehouse endpoint.
  6. Build the Power BI dashboard on the gold tables, and connect the same tables to a Microsoft Foundry agent for questions in natural language.

This is the medallion architecture Databricks popularised. Fabric supports the same bronze, silver and gold pattern on the same Delta format.

Microsoft Fabric vs Azure Databricks: what is the real difference?

Both run distributed Apache Spark on Delta Lake tables. The difference is who they are built for and how much control they give you. Microsoft Fabric is a managed SaaS with Power BI inside, built for business analysts, data analysts, data engineers and BI developers. Azure Databricks is an engineering and AI platform with configurable compute, MLflow and Mosaic AI, built for data engineers, ML engineers, data scientists and AI engineers.

AreaMicrosoft FabricAzure Databricks
InfrastructureManaged SaaS, governed by Fabric capacityManaged platform inside your Azure subscription
SparkFabric Spark on managed computeDatabricks Runtime on clusters you configure
SQLFabric Warehouse and SQL endpointsDatabricks SQL warehouses
StorageOneLakeYour own ADLS Gen2 (or S3, Cloud Storage)
Table formatDelta LakeDelta Lake
ETL and orchestrationData Factory pipelinesLakeflow jobs and pipelines
Machine learningData Science workload, integrated with Azure Machine LearningMLflow, Mosaic AI, model serving
BIPower BI, native, with Direct LakeAI/BI Dashboards; Power BI through a connector
ApplicationsPower BI and Microsoft 365 integrationsDatabricks Apps
GovernanceOneLake Catalog and Microsoft PurviewUnity Catalog
Compute controlCapacity, Spark autoscale, environmentsNode types, cluster sizes, GPU clusters, Spark settings
CloudsAzure, with OneLake shortcuts to S3 and Cloud StorageAzure, AWS and Google Cloud

The same comparison as yes-or-no questions, which is how the question usually arrives:

Can it...Microsoft FabricAzure Databricks
Process massive datasets with distributed Spark?YesYes
Run PySpark with multiple workers and autoscaling?Yes, managed by capacityYes, configurable
Build ML models?YesYes
Build AI applications?Yes, with Microsoft FoundryYes, with Mosaic AI
Build web applications?Through integrationsYes, Databricks Apps
Serve native business dashboards?Power BIAI/BI Dashboards
Integrate with enterprise BI?Very strongUsually an external BI tool
Tune Spark and GPU compute in detail?More managed, capacity constraintsMore flexible

Choose Microsoft Fabric when the company uses Microsoft 365, Power BI and SharePoint; the workloads are mainly SQL analytics and business reporting; you want data engineering and BI in one managed environment; and nobody on the team wants to size a Spark cluster.

Choose Azure Databricks when the work is large-scale Spark processing or complex distributed engineering; the team builds advanced ML and AI workloads; you need control over compute, node types and GPUs; or the architecture spans streaming and more than one cloud.

They also work together. Microsoft documents mirroring Azure Databricks Unity Catalog tables into OneLake as a read-only catalog with no data movement, generally available since 2025, and the reverse path, OneLake catalog federation, which lets Unity Catalog query data stored in OneLake from Databricks compute and was in Beta when I checked.

Is Fabric just Databricks without multiprocessing?

No. Fabric and Databricks both distribute work across Spark executors; neither relies on Python multiprocessing. The confusion comes from mixing two kinds of parallelism.

TechnologyHow it parallelisesWhere it runs
Python multiprocessingSeveral local operating-system processesOne machine
Python threadingSeveral threads in one processOne machine
PySparkTasks distributed across Spark executorsA cluster
Azure DatabricksDistributed Spark workloads on clusters you configureYour Azure subscription
Microsoft FabricDistributed Spark workloads on managed capacityThe Fabric SaaS

A Pool(4) in Python starts four local processes and never touches a cluster:

from multiprocessing import Pool

def process(x):
    return x * 2

with Pool(4) as pool:
    results = pool.map(process, range(100_000))

On Fabric or Databricks the same intent is a DataFrame operation, and Spark decides which executor runs which partition:

df = spark.read.parquet("/path/to/data")
result = df.repartition(8).groupBy("category").count()
result.show()

Fabric is not a less powerful Databricks because it is more managed. Databricks offers more flexibility for advanced compute engineering; Fabric trades that flexibility for integration and simplicity across the Microsoft ecosystem.

How do the layers look in Azure, AWS and Google Cloud?

Every enterprise AI architecture has the same four layers: AI applications and agents on top, data engineering below, data storage under that, and cloud infrastructure at the bottom. Pick a cloud in the diagram and tap a layer to see which services fill it.

Microsoft Foundry on top, Microsoft Fabric or Azure Databricks in the middle, OneLake and ADLS Gen2 underneath, Azure infrastructure at the bottom.

Typical use: A company that already runs Microsoft 365, Entra ID and Power BI and wants its AI agents next to that data.

Tap a layer to read what that technology does in this stack.

Azure. Microsoft Foundry on top, Microsoft Fabric or Azure Databricks in the middle, OneLake and ADLS Gen2 underneath, Azure infrastructure at the bottom. Typical use: A company that already runs Microsoft 365, Entra ID and Power BI and wants its AI agents next to that data.
LayerTechnologyWhat it does
AI applications and agentsMicrosoft Foundry, Foundry Agent Service, Azure AI SearchFoundry Models serve the LLM, Foundry Agent Service runs the agent, Azure AI Search holds the vectors and the hybrid index that RAG retrieves from.
Data engineeringMicrosoft Fabric, Azure Databricks, Data FactoryFabric for managed SaaS pipelines, Spark and Power BI; Azure Databricks for large Spark jobs, Delta Lake and ML; Data Factory for ingestion from more than 200 connectors.
Data storageOneLake, ADLS Gen2 / Blob Storage, Fabric Warehouse, Azure SQLObject storage for files and Delta tables, OneLake as the logical lake every Fabric workload reads, a SQL warehouse for analytics, Azure SQL for transactions.
Cloud infrastructureAzure VMs, AKS, Container Apps, Azure Functions, Virtual Network, Entra ID, Key Vault, Azure MonitorCompute, containers, serverless, networking, identity, secrets and monitoring: the part that neither Foundry nor Fabric replaces.
AWS. Amazon Bedrock on top, Glue, EMR or Databricks in the middle, S3 and Redshift underneath, EC2, EKS and Lambda at the bottom. Typical use: Financial institutions, fintech, e-commerce and large data platforms that already run on AWS.
LayerTechnologyWhat it does
AI applications and agentsAmazon Bedrock, Bedrock AgentCore, OpenSearchBedrock serves the foundation models, Knowledge Bases and Guardrails; AgentCore is the runtime for agents; OpenSearch is the usual vector store.
Data engineeringAWS Glue, Amazon EMR, Databricks on AWSGlue for managed ETL and its Data Catalog, EMR for Spark clusters you size yourself, Databricks for the lakehouse with Unity Catalog.
Data storageAmazon S3, Redshift, RDSS3 is the data lake, Redshift the warehouse, RDS the managed relational database.
Cloud infrastructureEC2, EKS, Lambda, VPC, IAM, Secrets Manager, CloudWatchVirtual machines, Kubernetes, serverless functions, networking, identity, secrets and monitoring.
Google Cloud. Gemini Enterprise Agent Platform on top, Dataflow, Dataproc or Databricks in the middle, Cloud Storage and BigQuery underneath, Compute Engine, GKE and Cloud Run at the bottom. Typical use: Companies with a large BigQuery investment, analytics-heavy workloads and Gemini-based applications.
LayerTechnologyWhat it does
AI applications and agentsGemini Enterprise Agent Platform, Agent Runtime, Agent SearchSince April 2026 Vertex AI is part of Gemini Enterprise Agent Platform: Model Garden and the Gemini models, Agent Runtime (formerly Agent Engine), RAG Engine, Vector Search and Agent Search (formerly Vertex AI Search).
Data engineeringDataflow, Dataproc, Databricks on Google CloudDataflow for managed batch and streaming pipelines, Dataproc for Spark clusters, Databricks for the lakehouse with Unity Catalog.
Data storageCloud Storage, BigQuery, Cloud SQLCloud Storage is the data lake, BigQuery the warehouse that many Google Cloud architectures revolve around, Cloud SQL the managed relational database.
Cloud infrastructureCompute Engine, GKE, Cloud Run, Cloud Functions, VPC, IAM, Secret Manager, Cloud MonitoringVirtual machines, Kubernetes, containers, serverless functions, networking, identity, secrets and monitoring.
Figure 2. The same four layers in each cloud. Microsoft Foundry, Amazon Bedrock and Gemini Enterprise Agent Platform fill the top layer; Fabric, Databricks, Glue, EMR, Dataflow and Dataproc the data engineering layer.

How do the services fit together in a real AI project?

Take an enterprise AI assistant that processes thousands of PDF documents. On Azure, each component has one service, and only three of the ten belong to Foundry.

ComponentAzure servicePurpose
Document storageAzure Blob StorageStore the PDFs
Document extractionDocument IntelligenceExtract text and tables
Data processingAzure DatabricksClean, transform and chunk the documents
EmbeddingsFoundry ModelsConvert text to vectors
Vector databaseAzure AI SearchStore and retrieve vectors, hybrid search
LLMFoundry ModelsGenerate the answers
Agent orchestrationFoundry Agent ServiceManage tools and agent execution
BackendAzure Container AppsHost the Python and FastAPI application
AuthenticationMicrosoft Entra IDSecure access
MonitoringAzure MonitorTrack application performance and cost
An enterprise RAG assistant on Azure Blob Storage store the PDFs Document Intelligence extract text and tables Azure Databricks clean, transform, chunk Foundry Models embeddings Azure AI Search store and retrieve vectors Foundry Models generate the answer Foundry Agent Service tools and agent execution Container Apps FastAPI backend Cross-cutting Entra ID (authentication) · Key Vault (secrets) · Azure Monitor (performance and cost) AWS: S3 · Textract · Glue · Bedrock · OpenSearch · ECS on Fargate Google Cloud: Cloud Storage · Document AI · Dataflow or Dataproc · Gemini Enterprise Agent Platform · BigQuery · Cloud Run Foundry owns the model, the agent and the evaluation; the rest stays on other Azure services.
Figure 3. The RAG assistant as a flow. Foundry owns the embeddings, the answer and the agent; the other seven boxes are ordinary Azure services.

The equivalent architecture on AWS uses S3, Textract, Glue, Bedrock, OpenSearch and ECS on Fargate. On Google Cloud it uses Cloud Storage, Document AI, Dataflow or Dataproc, Gemini Enterprise Agent Platform, BigQuery and Cloud Run. The shape is the same; the names change.

Which technology stacks do companies combine?

Companies rarely use one platform. They combine specialised services, and five combinations cover most enterprise AI projects: the Microsoft enterprise stack, Azure Databricks with Foundry, Fabric with Databricks and Foundry, AWS with Databricks and Bedrock, and Google Cloud with Databricks and Gemini Enterprise Agent Platform. These are practical patterns, not vendor bundles.

Everything inside the Microsoft ecosystem: Fabric for data, Foundry for AI, Power BI for the business, Entra ID for identity.

Typical use: A large enterprise that wants SharePoint, Microsoft 365, databases, internal documents, analytics and AI agents connected.

Tap a layer to read what that technology does in this stack.

Microsoft enterprise AI. Everything inside the Microsoft ecosystem: Fabric for data, Foundry for AI, Power BI for the business, Entra ID for identity. Typical use: A large enterprise that wants SharePoint, Microsoft 365, databases, internal documents, analytics and AI agents connected.
LayerTechnologyWhat it does
CloudAzureSubscriptions, regions, networking and the enterprise agreement the company already has.
Data engineeringMicrosoft Fabric, Data FactoryData Factory pipelines ingest from SharePoint, SQL and SaaS sources; Fabric Spark notebooks transform them into bronze, silver and gold tables.
Data lakeOneLakeOne logical lake per tenant on ADLS Gen2, organised in workspaces and lakehouses, read by every Fabric workload without copies.
Data warehouseFabric WarehouseSQL analytics over Delta tables in OneLake, with compute and storage scaled separately.
AI modelsMicrosoft FoundryFoundry Models for the LLM and the embeddings, evaluations and tracing from the same project.
RAG and searchAzure AI SearchHybrid retrieval: keyword, vector and semantic ranking over the chunked documents, with document-level security.
AI agentsFoundry Agent ServicePrompt agents defined in the portal or the SDK, or hosted agents running your own code with a managed endpoint.
BackendPython / FastAPIThe application-specific business logic, the tool endpoints the agent calls and the API the front end uses.
HostingAzure Container AppsContainers with scale-to-zero, managed identity and no cluster to run.
BIPower BIDashboards over the gold tables, delivered through the Power BI service, Teams and Excel.
SecurityEntra ID, Key VaultIdentity, managed identities and RBAC from Entra ID; secrets and keys in Key Vault.
Azure Databricks + Foundry. Each platform owns one job: Azure Databricks the data-heavy work, Microsoft Foundry the managed models and agents. Typical use: Millions of records cleaned in PySpark and stored as Delta tables, then an agent answering questions over the processed documents.
LayerTechnologyWhat it does
CloudAzureAzure Databricks is a first-party Azure service, billed and secured through the Azure subscription.
Data engineeringAzure Databricks, PySparkNotebooks and Lakeflow jobs ingest millions of records and run the PySpark transformations.
Data lakeADLS Gen2Your own storage account: the files stay in your Azure subscription.
Storage formatDelta LakeBronze, silver and gold tables as Parquet files plus a transaction log, with time travel and MERGE.
GovernanceUnity CatalogPermissions, lineage and metadata for every table, volume and model.
AI modelsMicrosoft FoundryFoundry Models provides the LLM and the embeddings; the data never has to leave Azure.
Vector searchAzure AI Search, Databricks Vector SearchAzure AI Search when you need enterprise hybrid retrieval; Databricks Vector Search when the index should live next to the Delta tables.
Agent orchestrationFoundry Agent Service, LangGraphA managed prompt agent in Foundry, or your own LangGraph graph packaged as a container and run as a Foundry hosted agent.
BackendPython / FastAPIExposes the application: authentication, tool endpoints, the chat API.
DeploymentAzure Container Apps, AKSContainer Apps for most services; AKS when you need a full Kubernetes cluster.
MonitoringAzure MonitorLogs, metrics and alerts for the app; Foundry adds traces and evaluations for the agent.
Fabric + Databricks + Foundry. The hybrid: Azure Databricks for complex Spark processing, Microsoft Fabric for business analytics, Microsoft Foundry for agents. Worth it only when both data platforms are already there. Typical use: Databricks processes hundreds of millions of transactions, Fabric exposes business-ready tables, Power BI serves the executives, a Foundry agent answers questions about customer activity.
LayerTechnologyWhat it does
CloudAzureInfrastructure, identity and billing for all three platforms.
Business analyticsMicrosoft Fabric, Power BIFabric exposes the curated tables to analysts; Power BI serves the reports.
Data engineeringAzure DatabricksComplex Spark processing, streaming and ML pipelines with the compute you configure.
Data lakeOneLake, ADLS Gen2Unity Catalog tables mirrored into OneLake as a read-only catalog, no data movement; Databricks can also query OneLake through catalog federation.
GovernanceUnity Catalog, Microsoft PurviewUnity Catalog governs the Databricks side; OneLake Catalog and Purview govern discovery, labels and compliance on the Fabric side.
AI platformMicrosoft FoundryLLMs, agents, evaluations and the control plane for governance.
SearchAzure AI SearchRAG retrieval over documents and curated data.
ApplicationPython / FastAPIBusiness logic and the bridge between the agent and the business systems.
HostingAzure Container AppsProduction deployment of the API and the agent tools.
AWS + Databricks + Bedrock. The same pattern on AWS: Databricks or EMR for engineering, S3 and Redshift for storage, Amazon Bedrock for models and agents. Typical use: Financial institutions, fintech, e-commerce and large-scale data platforms already running on AWS.
LayerTechnologyWhat it does
CloudAWSAccounts, regions, VPCs and IAM.
Data engineeringDatabricks, Amazon EMRDatabricks for the lakehouse and Unity Catalog; EMR for Spark clusters you manage yourself.
Data lakeAmazon S3Object storage for files and Delta tables.
Data warehouseRedshiftSQL analytics; Databricks SQL warehouses are the alternative inside the lakehouse.
GovernanceUnity Catalog, AWS Glue Data CatalogUnity Catalog for Databricks assets, the Glue Data Catalog for the rest of the AWS data estate.
AI modelsAmazon BedrockFoundation models, Knowledge Bases for RAG, Guardrails and model evaluation.
Vector searchOpenSearch, Databricks Vector SearchOpenSearch for the existing AWS ecosystem; Databricks Vector Search close to the Delta tables.
AI agentsBedrock AgentCore, LangGraphBedrock Agents and the AgentCore runtime, or your own LangGraph application.
BackendPython / FastAPIApplication logic and tool endpoints.
HostingECS, EKS, LambdaContainers on ECS or EKS, functions on Lambda.
MonitoringCloudWatchLogs, metrics and alarms.
Google Cloud + Databricks + Gemini. BigQuery at the centre, Databricks or Dataflow for engineering, Gemini models and Agent Runtime on Gemini Enterprise Agent Platform. Typical use: Companies with a significant BigQuery investment, analytics-heavy workloads and Gemini-based AI applications.
LayerTechnologyWhat it does
CloudGoogle CloudProjects, regions, VPCs and IAM.
Data engineeringDatabricks, DataflowDatabricks for the lakehouse; Dataflow for managed batch and streaming pipelines.
Data lakeCloud StorageObject storage for files and Delta tables.
Data warehouseBigQueryThe serverless warehouse most Google Cloud analytics is built on.
GovernanceUnity Catalog, DataplexUnity Catalog for Databricks assets, Dataplex for the Google Cloud data estate.
AI modelsGemini Enterprise Agent PlatformGemini models and the Model Garden, tuning and evaluation; the platform Vertex AI became part of in April 2026.
Vector searchVector SearchManaged vector index for RAG, next to RAG Engine and Agent Search.
AI agentsAgent Runtime, LangGraphAgent Runtime (formerly Agent Engine) hosts agents built with the ADK or LangGraph.
BackendPython / FastAPIApplication logic and tool endpoints.
HostingCloud Run, GKECloud Run for containers with scale-to-zero, GKE for a full Kubernetes cluster.
MonitoringCloud MonitoringLogs, metrics and alerting.
Figure 4. Five reference stacks. The second one, Azure Databricks plus Microsoft Foundry, is the one I recommend understanding first: each platform has one clear responsibility.

The Azure Databricks plus Foundry stack works as a relay. Databricks ingests millions of records, PySpark cleans and transforms them, Delta Lake stores the bronze, silver and gold tables and Unity Catalog manages permissions. The processed documents are indexed in Azure AI Search, Foundry provides the LLM, an agent retrieves the relevant information and answers users, and FastAPI exposes the application. Databricks handles the data-intensive workload; Foundry provides the managed AI capabilities.

Which combination fits which project:

ProjectRecommended combination
Enterprise RAG chatbotAzure AI Search, Microsoft Foundry, FastAPI
SharePoint AI assistantSharePoint, Fabric Data Factory, Microsoft Foundry
Financial analytics with AIAzure Databricks, Delta Lake, Microsoft Foundry
Large-scale ML platformAzure Databricks, MLflow, Azure Machine Learning
AI document processingDocument Intelligence, Blob Storage, Microsoft Foundry
AI agents with business toolsMicrosoft Foundry, FastAPI, API Management
Enterprise BI with AIMicrosoft Fabric, Power BI, Microsoft Foundry
Real-time trading analyticsAzure Databricks, Kafka, Delta Lake, model serving

One warning about the hybrid stack: do not introduce Fabric and Databricks together by default. If Fabric Spark is sufficient, adding Databricks adds cost and complexity; if Databricks is already the data platform, Fabric earns its place only for the Power BI and Microsoft 365 users.

Which architecture practices keep these stacks maintainable?

Seven practices separate a demo from a production system on any of the stacks above.

  1. Separate data engineering from AI orchestration. Databricks or Fabric do ingestion, transformations and aggregations; Foundry does model inference and agent workflows; FastAPI holds the application logic. An agent should never be responsible for processing millions of records.
  2. Do not use one vector database for everything. Choose by retrieval requirement, as in the table below.
  3. Use hybrid RAG, not vector-only RAG. Combine keyword search (BM25), vector similarity, metadata filtering and reranking. Legal documents, financial reports and technical documentation need all four.
  4. Implement identity-based security. Entra ID, managed identities, Key Vault, RBAC and document-level security. Never expose the search index or the database directly to every agent.
  5. Process documents asynchronously. Queues and background workers, not users waiting for OCR.
  6. Evaluate AI quality before deployment. Retrieval precision and recall, answer groundedness, hallucination rate, latency, token consumption and cost per request.
  7. Avoid vendor lock-in where practical. Business logic in Python, standard APIs, model providers behind interfaces, data in open formats such as Parquet and Delta Lake.
Retrieval requirementRecommended vector store
Enterprise search with hybrid retrieval and document-level securityAzure AI Search
Vectors next to the Delta tables in DatabricksDatabricks Vector Search
An existing AWS ecosystemOpenSearch
An existing Google Cloud ecosystemVector Search on Gemini Enterprise Agent Platform
A small corpus already in PostgreSQLpgvector, before buying anything

The asynchronous ingestion path, which is the same on every cloud:

document upload
   → message queue
   → document-processing workers
   → OCR and extraction
   → chunking and embeddings
   → vector database

Which Microsoft service should you choose?

Choose by the dominant workload. LLM applications, RAG and agents go to Microsoft Foundry with Azure AI Search. SQL analytics, BI and Microsoft 365 users go to Microsoft Fabric with Power BI. Heavy Spark, custom ML and compute you want to configure go to Azure Databricks. A classic ML lifecycle without Spark goes to Azure Machine Learning. Everything else is plain Azure services and your own code.

Which Microsoft service: a decision flow Is the work an LLM app, RAG or an agent? Microsoft Foundry plus Azure AI Search for the retrieval yes no Mostly SQL analytics, BI and Microsoft 365 users? Microsoft Fabric plus Power BI; OneLake as the shared lake yes no Heavy Spark, custom ML, compute you configure? Azure Databricks Delta Lake, Unity Catalog, MLflow yes no A classic ML lifecycle, no Spark needed? Azure Machine Learning training, model registry, endpoints yes no Otherwise: plain Azure services, Container Apps, Azure SQL, Functions, and your own code Already on Databricks? Add Fabric only for Power BI users. Already have LangGraph? Run it as a Foundry hosted agent.
Figure 5. Four questions cover most cases. The footnote matters as much as the boxes: the best architects also know when not to add a platform.

The questions an AI Solutions Architect should ask before adding a platform:

  • If the company already has Databricks, why introduce Fabric? Only for the business users.
  • If a LangGraph application already works, why replace it with Foundry Agent Service? Run it as a Foundry hosted agent and gain the endpoint, identity and tracing.
  • If PostgreSQL with pgvector meets the retrieval requirement, why pay for a separate vector database?
  • If the whole workload is SQL and reports, why run a Spark cluster at all?

Knowing which tools to combine is AI engineering. Knowing when not to combine them is architecture.

What should an AI engineer learn first in the Microsoft ecosystem?

Learn how the platforms integrate rather than every individual service, and map Azure onto what you already know from AWS and Google Cloud. My priority order for someone with Python, LangChain, LangGraph, RAG and Databricks experience:

PriorityTechnologyWhat to master
1Azure fundamentalsCompute, storage, networking, identity
2Microsoft FoundryModels, agents, evaluation, deployment
3Azure AI SearchHybrid search, vector search, RAG
4Microsoft FabricLakehouse, OneLake, medallion architecture, Direct Lake
5Azure DatabricksSpark, Delta Lake, Unity Catalog, ML pipelines
6Azure securityEntra ID, Key Vault, RBAC, private networking
7Azure deploymentContainer Apps, AKS, CI/CD, monitoring

And the order in which to learn the combinations: Azure with Databricks and Foundry first, for enterprise AI architecture; Fabric with Power BI and Foundry second, for Microsoft's integrated analytics; AWS with Bedrock and Databricks third; Google Cloud with BigQuery and Gemini Enterprise Agent Platform fourth. Nobody needs all four at once.

If you already know Spark, Delta Lake and Databricks, do not relearn the concepts in Fabric. Spend the time on what is Fabric-specific: OneLake, the Fabric lakehouse, Data Factory, the Warehouse, Direct Lake and the Power BI integration. Those are what distinguish a Fabric engineer from a general Databricks engineer.

Sources

  • Microsoft Learn, What is Microsoft Foundry?: the Azure AI Studio and Azure AI Foundry to Microsoft Foundry rename, Foundry Models, Foundry Agent Service with prompt and hosted agents, the Foundry Toolbox, observability and the control plane. Page dated August 2026, read on 6 November 2026.
  • Microsoft Learn, What is Microsoft Fabric?: the workloads, OneLake on ADLS Gen2, shortcuts, mirroring, Fabric IQ (preview) and the Microsoft Foundry and Azure Machine Learning integrations. Read on 6 November 2026.
  • Microsoft Learn, Azure Databricks documentation and Connect to Microsoft Fabric: the mirrored Unity Catalog in OneLake and the OneLake catalog federation (Beta).
  • Microsoft Fabric blog, How OneLake provides Apache Iceberg support: Iceberg metadata generated for Delta tables without copying data.
  • Google Cloud, Gemini Enterprise Agent Platform release notes, entry of 22 April 2026: "Vertex AI is now part of Gemini Enterprise Agent Platform", Agent Engine renamed Agent Runtime, Vertex AI Search renamed Agent Search.
  • AWS, Amazon Bedrock documentation and the What's New note of June 2026 on Bedrock Guardrails in AgentCore policies.
  • My own study notes of November 2026 on the five reference stacks, the project-to-stack table and the seven practices, written from the projects above and checked against the documentation listed here. Pricing, quotas and preview status change monthly; the vendors' pages are the source of truth.

Questions this answers

Is Microsoft Foundry the same as Azure AI Foundry?

Yes. Microsoft renamed Azure AI Studio and then Azure AI Foundry to Microsoft Foundry, and Azure AI Services became Foundry Tools; the Microsoft Learn page "What is Microsoft Foundry?" lists the old and new names side by side. It is the platform for models, agents, tools, evaluation and governance, and it runs on Azure.

Is Microsoft Fabric a replacement for Azure Databricks?

No. Microsoft Fabric is a SaaS analytics platform (OneLake, Data Factory, Spark, Data Warehouse, Real-Time Intelligence, Power BI) built for data engineering and BI. Azure Databricks is a lakehouse platform for large-scale Spark, Delta Lake, Unity Catalog and machine learning. Microsoft documents both directions of integration: Unity Catalog tables mirrored into OneLake and Databricks querying OneLake through catalog federation.

Do I need Microsoft Fabric if I already use Databricks?

Usually only for the business layer: Power BI with Direct Lake, OneLake for Microsoft 365 users, and the mirrored Unity Catalog tables that analysts read without copies. If Fabric Spark would duplicate what Databricks already does, adding it brings cost and complexity without new capability.

Does Microsoft Fabric run distributed processing like Databricks?

Yes. Fabric Data Engineering runs Apache Spark with PySpark, executors and autoscaling, so it parallelises work across workers the way Databricks does. The difference is control: Fabric compute is governed by Fabric capacity and is more managed, while Databricks lets you pick node types, cluster sizes, GPU clusters and Spark settings.

What are the AWS and Google Cloud equivalents of Microsoft Foundry?

Amazon Bedrock on AWS (foundation models, Knowledge Bases, Guardrails, Bedrock Agents and the AgentCore runtime) and Gemini Enterprise Agent Platform on Google Cloud (Model Garden, Gemini models, RAG Engine, Vector Search, Agent Runtime). They are functional equivalents, not one-to-one replacements.

What happened to Vertex AI?

Google announced on 22 April 2026 that Vertex AI is now part of Gemini Enterprise Agent Platform. The release notes list the renames: Agent Engine is now Agent Runtime, Vertex AI Search is Agent Search, and RAG Engine, Vector Search and Model Garden keep their names without the Vertex AI prefix.

Which Azure service do I use for RAG?

Azure AI Search for the retrieval (keyword, vector and semantic ranking with document-level security), Foundry Models for the embeddings and the answer, Foundry Agent Service if the assistant needs tools, and Document Intelligence plus Blob Storage for the documents. Databricks Vector Search is the alternative when the index should live next to the Delta tables.

Where does Azure Machine Learning fit next to Microsoft Foundry?

Azure Machine Learning covers the classic ML lifecycle: training, experiment tracking, a model registry and the deployment of your own models. Microsoft Foundry covers LLMs, agents and generative AI applications. Fabric Data Science integrates with Azure Machine Learning for experiment tracking and the model registry.

Can Microsoft Foundry run a LangGraph agent?

Yes. Besides declarative prompt agents, Foundry Agent Service runs hosted agents: you package your own code or framework, such as LangGraph, Semantic Kernel or Microsoft Agent Framework, as a container, and Foundry provides the managed endpoint, scaling, identity and observability.

Tags:azuremicrosoft fabricdatabricksmicrosoft foundrycloud architecturegenerative airagai agentsdata engineering

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