Microsoft Databases and Microsoft Fabric: Your unified and AI-powered data estate !

 



New Core Database Capabilities in Fabric
Microsoft announced the general availability of SQL Server 2025, Azure DocumentDB, and SQL Database plus Cosmos DB within Fabric, and previewed a new offering called Azure HorizonDB. These are designed to be deeply integrated with Microsoft Fabric, making Fabric the central hub for the entire data estate. CIO+1


These databases support AI workloads (vector search, retrieval-augmented generation, etc.) and are secured by default. CIO


Fabric Databases can provision in seconds, making it much faster to spin up data infrastructure. CIO


Data from these databases can replicate into OneLake, so analytical and AI engines can act on it. CIO


FabCon 2025 Announcements
At FabCon 2025, Microsoft revealed several key innovations for Fabric:


A migration experience built into the Fabric UI for users to move from Azure Synapse Analytics to Fabric more easily. Microsoft+1


New developer tooling: A CLI (command-line) experience for Fabric, CI/CD enhancements, and “User Data Functions” — these make it easier to define reusable logic inside Fabric. Microsoft


Enhancements to OneLake: shortcuts, mirroring, expanded cross-tenant sharing, and more governance / security control. Microsoft+1


New graph database (“Graph in Fabric”) for modeling and analyzing relationships across data estate. The Official Microsoft Blog


Geospatial analytics (Maps) and a “digital twin builder” for real-time intelligence. The Official Microsoft Blog


Preview of the Model Context Protocol (MCP), allowing AI-assisted code generation directly in tools like VS Code and GitHub Codespaces. The Official Microsoft Blog


Integration with Dataverse (Power Platform)


Microsoft Power Platform blog announced zero-copy integration between Microsoft Dataverse and Fabric. That means operational data in Dataverse (used by Power Apps / Dynamics 365) can be used in real time by Fabric without replication or ETL. Microsoft


They also announced a Mirrored Dataverse (in private preview) to securely mirror data into Fabric, enabling analytics on operational data in OneLake. Microsoft


This integration enables “data agents” (AI agents) that act on real-time data — enabling near-instant insights + actions. Microsoft


Partner Innovations: Informatica + Microsoft Fabric


Informatica introduced Master Data Management (MDM) extensions for Microsoft Fabric (now GA), bringing high-quality, mastered data into Fabric from multiple sources. Business Wire


They also released a Data Quality native application inside Fabric, so data profiling, cleansing, and trust can be managed directly from within Fabric. Business Wire


On the AI front, Informatica leveraged Azure OpenAI Service to build a “CLAIRE Copilot” within Fabric for data integration and data management tasks — enabling business users to work with AI assistants inside their data workflows. Business Wire


Ecosystem Expansion: Fivetran + Fabric


Fivetran announced more than 700 pre-built connectors for Microsoft Fabric and OneLake. Business Wire


This integration allows enterprises to ingest data from hundreds of sources, transform it into open table formats (like Iceberg or Delta Lake), and centralize that data in Fabric in a governance- and performance-optimized way. Business Wire


The goal is to provide a scalable, managed pipeline that supports AI, analytics, and real-time use cases without excessive engineering overhead. Business Wire


New AI-Driven Analytics & Data Readiness


Microsoft is positioning Fabric as beyond just data unification — more of an AI readiness platform, where data is organized, connected, and ready for AI consumption. The Official Microsoft Blog


With changes like Model Context Protocol, graph database, and agentic capabilities, Fabric is becoming more capable for AI/ML, data science, and real-time intelligent applications. The Official Microsoft Blog


There’s also a strong emphasis on mission-critical reliability, security, and governance — making Fabric appropriate for enterprise-scale AI workloads. The Official Microsoft Blog


Real-time Insights with AI Analytics


In a previous Microsoft Fabric blog, they highlighted how OneLake shortcuts now support data from on-premises, Google Cloud Storage, and AWS S3, reducing duplication and making the data estate more integrated. Microsoft


This lets teams run AI analytics more efficiently, because data stays in place and can be queried securely and quickly. Microsoft
🔍 Why It Matters / Implications




Unified Data Estate: These developments show Microsoft is really leaning into making Fabric the “single pane” for operational + analytical data. That’s important for companies that struggle with fragmented data across different systems.


AI-First Architecture: By integrating AI capabilities deeply into both databases and analytics, Microsoft is making it much easier to build “intelligent applications” — not just dashboards, but apps that reason over data.


Real-Time + Operational Use Cases: The Dataverse integration means that business apps (Power Apps, Dynamics) can drive real-time insights without data duplication — powerful for operational analytics.


Open & Scalable: Supporting open formats like Iceberg and Delta Lake, and offering connectors to many sources, means that customers are less locked in and can scale more flexibly.


Security & Governance: With mirroring, OneLake’s shared storage, and enterprise controls, the platform is being built for serious enterprise use — not just prototyping.

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