What’s New in Microsoft Databases: Empowering AI-Driven App Development

Session Date: May 19, 2025
Duration: 1 hour
Venue: Build 2025 Conference - BRK204
Speakers: Arun Ulag (CVP, Microsoft), Shireesh Thota (CVP Azure Databases, Microsoft), Priya Sathy (Partner Director of Product SQL, Microsoft), Charles Feddersen (Partner Director of Program Management, Microsoft), Kirill Gavrylyuk (VP Azure Cosmos DB, Microsoft), Genis Campa (Head of Data Innovation, NTT Data)
Link: [Microsoft Build 2025 Session BRK204]

Executive Summary

This comprehensive session showcases Microsoft’s complete database portfolio transformation for the AI era. Led by CVPs Arun Ulag and Shireesh Thota, the presentation demonstrates how SQL Server 2025, Azure SQL, Cosmos DB, and PostgreSQL deliver AI-ready capabilities through vector search, semantic operators, and intelligent data processing. Live demonstrations show real-world implementations across enterprise customers like UBS, NFL, BMW, and NTT Data.

Key Topics Covered

?? 1. AI-First Database Strategy

The Data-AI Imperative

Core Principle: “AI is only as good as the data that it gets to work on”

Strategic Foundation:

Data quality determines AI success - “Garbage in, garbage out”
Getting data AI-ready is the critical first step for organizations
Comprehensive portfolio - Most complete database offering across the industry
Three decades of SQL Server - Still the leading enterprise database for scale, reliability, and security

Microsoft Database Portfolio Momentum

Market Leadership Metrics:

Azure SQL: Used by 97% of Fortune 500 companies
Cosmos DB: #1 database for building AI applications (Bloomberg CIO survey)
PostgreSQL: Microsoft has more committers than any other hyperscaler
ChatGPT: Built on Cosmos DB, demonstrating real-world AI scale

?? 2. SQL Server 2025: AI-Ready Enterprise Database

Major Announcement: Public Preview Launch

SQL Server 2025 Public Preview - 2x adoption rate compared to SQL Server 2022

AI-Ready Capabilities

Built-in Vector Search:

Native vector data type supporting embeddings in binary format
DiskANN vector indexing - Microsoft Research technology powering Bing
Multi-language model support - From local Ollama to Azure OpenAI
Semantic search capabilities integrated into enterprise database

Live Demo Highlights:

Natural language search across multilingual product catalogs
Dynamic model switching - From local to cloud AI models
Security integration - Microsoft Entra Managed Identity support
Developer experience - Direct AI application code generation

Security and Integration Enhancements

Enterprise Security:

Microsoft Entra Managed Identity support for Azure resource access
ARC enablement for hybrid cloud scenarios
Secure AI model connections replacing API key authentication

Fabric Integration:

OneLake connectivity - Data available in open Delta Parquet format
Mirroring capabilities - Real-time data synchronization
Cross-cloud availability - Runs anywhere, any cloud

?? 3. Azure SQL Database Evolution

SQL Server Management Studio 21 GA

Complete Modernization:

Visual Studio 2022 shell - Modern development environment
64-bit architecture support
Dark mode and modern UI
Git integration for database development
New query editor and enhanced results grid
Azure authentication built-in

SSMS 21 Copilot Integration (Public Preview)

AI-Powered Database Management:

Natural language query generation - Write, edit, and tune queries in plain English
Context-aware responses - Grounded in actual database schema and data
Database administration - Configuration, maintenance, and troubleshooting assistance
Intelligent suggestions - Performance optimization recommendations

Azure SQL Hyperscale Innovations

Enterprise Scale Performance:

30 read replicas support
100+ terabyte transactional workloads
50% faster than AWS Aurora in price-performance
Continuous priming (GA) - Consistent performance during failovers
150 MB/s log throughput - Optimized for write-heavy workloads

Customer Success: UBS

2 petabytes of data migrated from mainframe
50,000 tables managed
400 billion records processed
Tier 1 banking workload reliability

Developer Experience Enhancements

VS Code Integration:

MSSQL extension with Copilot capabilities
Query generation and ORM migrations
Schema exploration within IDE
Database chat functionality for application development

JSON Data Support:

JSON indexing (Public Preview) - High-performance semi-structured queries
Native JSON types with optimized binary storage
JSON aggregation - Seamless relational-to-JSON transformations
2GB document storage capacity per JSON field

?? 4. PostgreSQL: Open Source AI Integration

Vector Search Performance Breakthrough

DiskANN for PostgreSQL (GA):

35 million vectors queried in under 1 second
10x performance improvement over HNSW (1000ms ? 100ms average latency)
Product quantization optimization
Superior accuracy compared to pgvector

Semantic Operators Innovation (Public Preview)

Natural Language SQL Integration: Four powerful semantic operators:

GENERATE: ChatGPT-style content generation within queries
IS_TRUE: Semantic predicate evaluation
EXTRACT: Entity knowledge extraction
RANKING: AI-powered result relevance ordering

Example Implementation:

SELECT product_name, reviews 
FROM products 
WHERE reviews IS_TRUE 'positive sentiment about comfort'
ORDER BY reviews RANKING 'best for gaming'

High Availability Architecture

Premium SSD v2 Integration (Public Preview):

Sub-10 second failover times
Performance parity with existing SSD solutions
Enhanced reliability for critical workloads

Enhanced Developer Experience

VS Code PostgreSQL Extension:

Native Entra ID authentication
Azure-integrated experience with subscription/resource group dropdowns
Copilot optimization for PostgreSQL-specific queries
Query performance analysis - 38ms to 8.5ms optimization examples
Export capabilities - Excel, JSON, CSV support

Graph Database Capabilities

Apache AGE Extension (GA):

Native Cypher queries in PostgreSQL
Semantic relationships beyond traditional foreign keys
Product-review-feature graph modeling
Advanced pattern matching for complex data relationships

Customer Success: PTC

300 complex scenarios migrated to Azure Database for PostgreSQL
Increased reliability and faster processing
Cost efficiency gains enabling AI application focus
AKS and Semantic Kernel integration

?? 5. Cosmos DB: Global AI Database Platform

AI Foundry Native Integration

Thread Services Integration (Preview):

Structured conversations between users and agents
Context preservation across multi-turn interactions
Bring Your Own Storage for thread management
Foundry SDK embedding for intelligent applications

Performance and Scale Innovations

Global Secondary Indexing:

Read-only containers with alternative partition keys
Cross-partition query optimization
Performance boost for non-partition-key queries
Cost reduction through targeted indexing

Vector and Full-Text Search (GA):

Hybrid search capabilities combining vector similarity and BM25 text ranking
Multi-language support (Public Preview)
Fuzzy search with typo tolerance
Phrase search capabilities

Zero-Downtime Architecture

Per-Partition Automatic Failover:

Surgical failover - Individual partition recovery without full database failover
Zero downtime (RTO = 0) guarantee
Zero data loss (RPO = 0) with strong consistency
Zero touch - SDK-managed transparent failover

The “000 Database”:

RTO: 0 - No recovery time
RPO: 0 - No data loss
Manual intervention: 0 - Fully automated

Fleet Management for Multi-Tenancy

SaaS Optimization:

Shared throughput across tenant accounts
Aggregated monitoring and management
Cost optimization for multi-tenant applications
Security isolation maintained per tenant

Customer Success: NFL

AI coaching assistant built on Cosmos DB
Azure OpenAI integration for talent evaluation
Real-time insights for athlete assessment
Container services orchestration

MongoDB API Enhancements

Open Source Collaboration:

Cosmos Mongo vCore API open sourced
Partnership with Yugabyte and FerretDB
PostgreSQL-backed document API
Community contribution to document database ecosystem

Enterprise Features:

Entra ID authentication for MongoDB vCore clusters
DiskANN vector search for document databases
Transactional semantics with document flexibility

?? 6. Live Demonstrations and Real-World Applications

SQL Server 2025 AI Application Development

Multi-Language Vector Search:

English and Chinese product search in single database
Dynamic model switching between Ollama and Azure OpenAI
Semantic Kernel integration for C# application development
Automatic code generation for vector store operations

Azure SQL Hyperscale Insurance Application

Data API Builder (DAB) Integration:

REST and GraphQL endpoint generation from database schema
Claims-based security with user context
JSON document storage up to 2GB per field
Model Context Protocol (MCP) server integration
Natural language database manipulation through chat interface

Advanced Scenarios:

Complex business rules triggered via chat commands
Multi-step operations (name change, address update, insurance addition)
Email notifications integrated with database changes

PostgreSQL Vector Search Performance

35 Million Vector Demo:

Sub-second response times with DiskANN
Semantic operator re-ranking for result optimization
Graph query integration with Apache AGE
Copilot query optimization reducing latency 5x

Cosmos DB Agentic Applications

Multi-Tenant Chat Platform:

MCP client-server architecture
Per-tenant container isolation
Semantic caching with vector similarity
Hybrid search with automatic tool selection
AI Foundry portal integration for agent deployment

?? 7. Customer Success Stories

Enterprise Transformations

UBS (Banking):

Mainframe migration to Azure SQL Hyperscale
2 petabyte data estate management
Mission-critical banking operations
Enterprise scale reliability

BMW (Automotive):

Mobile data recorder infrastructure
PostgreSQL Flexible Server for vehicle data
AI-powered conversation and chat history
Real-time processing capabilities

Carvana (E-commerce):

CARE system - Conversational Analyst Review Engine
Millions of conversations processed monthly
AI-first development culture
Cosmos DB as central data platform

NTT Data (IT Services):

Data-driven strategy transformation
6,000+ employees actively using platform
70 developers deploying 3-4 times daily
4-year development journey to production stability

Industry Impact Examples

Mondra Global (Sustainability):

Environmental impact assessment for food retailers
Product lifecycle evaluation acceleration
Weeks/months ? 4 hours processing time
60,000 products with 1M+ ingredients analyzed
Azure SQL Hyperscale + Semantic Kernel architecture

?? 8. Microsoft Fabric Integration Strategy

Unified Data Platform Vision

Four Strategic Pillars:

Enterprise-grade reliability and security
AI developer optimization
SaaS-ified autonomous database operations
OneLake integration for unified data estate

Database Services in Fabric

SQL Database in Fabric:

Simplified provisioning and management
Autonomous operations - security, HA, indexing, tuning
AI integration - vector indexing and semantic search
Analytical integration with unified data platform

Cosmos DB in Fabric (Public Preview)

Enterprise AI Applications:

Dynamic scalability with five-nines reliability
Sub-10ms latency for 400 billion vector operations
DiskANN technology from Microsoft Research
Real-time sentiment analysis with OneLake integration
No ETL required for analytical workflows

Mirroring Capabilities Expansion

Real-Time Data Synchronization:

SQL Database behind firewalls (existing)
PostgreSQL mirroring (announced)
SQL Server 2016-2022 on-premises support (Public Preview)
SQL Server 2025 first-class mirroring integration

Technical Architecture and Integration

AI-Ready Database Stack

Unified AI Capabilities Across Portfolio:

Vector data types and indexing (SQL Server, Azure SQL, Cosmos DB, PostgreSQL)
DiskANN technology - Microsoft Research algorithm for billion-scale vector operations
Semantic operators - Natural language SQL integration
Multi-model support - Local and cloud AI model flexibility

Developer Experience Evolution

IDE-Native Database Development:

VS Code extensions for all database platforms
GitHub Copilot integration across SQL Server, PostgreSQL
Natural language query generation and optimization
Context-aware assistance grounded in actual database schemas

Security and Compliance Framework

Enterprise-Grade Security:

Microsoft Entra ID integration across all platforms
Managed Identity support for secure cloud resource access
ARC enablement for hybrid cloud scenarios
Zero-trust architecture with identity-based access control

Session Highlights

“AI is only as good as the data that it gets to work on… if you put garbage in, most likely you’re going to get garbage out.” - Arun Ulag

“Folks, no other enterprise database on the planet can do something like this so easily, so seamlessly.” - Priya Sathy (on SQL Server 2025 multi-language AI capabilities)

“With semantic search, semantic re-ranker, fleet management, per partition auto failover… Cosmos DB is the go-to database for your agentic apps that need scale, reliability, performance, and serverless cost efficiency.” - Kirill Gavrylyuk

“We are proud to say Cosmos DB is the 000 database: RTO zero, RPO zero, zero touch.” - Shireesh Thota

“Microsoft has more committers on Postgres than any other hyperscaler… we actively contribute back to the Postgres community.” - Arun Ulag

Practical Implementation Guide

Getting Started with AI-Ready Databases

SQL Server 2025 AI Development:

Download public preview and explore vector data types
Install SSMS 21 for modern management experience
Enable Copilot for AI-assisted query development
Experiment with multi-model AI integration (Ollama ? Azure OpenAI)

Azure SQL Hyperscale for Modern Apps:

Leverage JSON indexing for flexible schema design
Implement Data API Builder for instant REST/GraphQL APIs
Integrate Model Context Protocol for conversational data access
Utilize continuous priming for consistent performance

PostgreSQL AI Applications:

Deploy DiskANN for high-performance vector search
Experiment with semantic operators for natural language queries
Use VS Code extension with Copilot optimization
Implement Apache AGE for graph database scenarios

Cosmos DB Agentic Development:

Design multi-tenant container architecture
Implement semantic caching for cost optimization
Configure AI Foundry integration for agent deployment
Leverage fleet management for SaaS applications

Migration and Modernization Strategies

Assessment Tools:

Azure Migrate for MySQL discovery and readiness assessment
Database Migration Service for PostgreSQL transitions
SQL Server Migration Assistant for Oracle-to-PostgreSQL paths

Modernization Pathways:

Rehost: SQL VMs for lift-and-shift scenarios
Modernize: SQL Managed Instance for hybrid scenarios
Rebuild: Azure SQL Database for cloud-native applications

Future Roadmap and Innovation

Emerging Technologies

Semantic re-ranker integration across database portfolio
Advanced agentic frameworks with MCP standardization
Enhanced multi-language AI model support
Deeper Fabric integration with analytical workflows

Community and Open Source

PostgreSQL contributions leadership in hyperscaler space
MongoDB API open sourcing with community collaboration
Developer tool ecosystem expansion across IDEs
AI model marketplace integration

About the Speakers

Arun Ulag
Corporate Vice President
Microsoft
20+ years at Microsoft leading Azure Data portfolio including databases, analytics, messaging, and business intelligence across SQL, Cosmos DB, PostgreSQL, MySQL, and Microsoft Fabric.

Shireesh Thota
Corporate Vice President, Azure Databases
Microsoft
Founding member of Cosmos DB with 20+ years experience in distributed systems. Previously Senior VP at SingleStore, now leading Azure’s comprehensive database portfolio.

Priya Sathy
Partner Director of Product, SQL
Microsoft
25+ years in data and analytics, leading SQL Server, Azure SQL, and Fabric SQL Database development. Expert in enterprise-scale data platform architecture.

Charles Feddersen
Partner Director of Program Management
Microsoft
Leading PostgreSQL on Azure including managed services and open source contributions. Responsible for product strategy and customer experience.

Kirill Gavrylyuk
Vice President, Azure Cosmos DB
Microsoft
20+ years in distributed systems and database platforms, leading Cosmos DB engineering and product development for global-scale applications.

Genis Campa
Head of Data Innovation
NTT Data
Leading enterprise data transformation initiatives with focus on AI integration and strategic partnerships with Microsoft ecosystem.

This session demonstrates Microsoft’s comprehensive database portfolio evolution for the AI era, showing how traditional database platforms are being transformed into AI-ready foundations for next-generation intelligent applications while maintaining enterprise-grade reliability, security, and performance.