diff --git a/core/Azure.Mcp.Core/src/Areas/Server/Commands/Discovery/ConsolidatedToolDiscoveryStrategy.cs b/core/Azure.Mcp.Core/src/Areas/Server/Commands/Discovery/ConsolidatedToolDiscoveryStrategy.cs
index 7a63675226..da07446e5a 100644
--- a/core/Azure.Mcp.Core/src/Areas/Server/Commands/Discovery/ConsolidatedToolDiscoveryStrategy.cs
+++ b/core/Azure.Mcp.Core/src/Areas/Server/Commands/Discovery/ConsolidatedToolDiscoveryStrategy.cs
@@ -7,6 +7,7 @@
 using Azure.Mcp.Core.Areas.Server.Models;
 using Azure.Mcp.Core.Areas.Server.Options;
 using Azure.Mcp.Core.Commands;
+using Azure.Mcp.Core.Configuration;
 using Azure.Mcp.Core.Services.Telemetry;
 using Microsoft.Extensions.DependencyInjection;
 using Microsoft.Extensions.Logging;
@@ -21,11 +22,21 @@ namespace Azure.Mcp.Core.Areas.Server.Commands.Discovery;
 /// <param name="commandFactory">The command factory used to access available command groups.</param>
 /// <param name="options">Options for configuring the service behavior.</param>
 /// <param name="logger">Logger instance for this discovery strategy.</param>
-public sealed class ConsolidatedToolDiscoveryStrategy(CommandFactory commandFactory, IServiceProvider serviceProvider, IOptions<ServiceStartOptions> options, ILogger<ConsolidatedToolDiscoveryStrategy> logger) : BaseDiscoveryStrategy(logger)
+public sealed class ConsolidatedToolDiscoveryStrategy(
+    CommandFactory commandFactory,
+    IServiceProvider serviceProvider,
+    ITelemetryService telemetryService,
+    IOptions<ServiceStartOptions> options,
+    IOptions<AzureMcpServerConfiguration> serverConfigurationOptions,
+    ILogger<CommandFactory> commandFactoryLogger,
+    ILogger<ConsolidatedToolDiscoveryStrategy> logger) : BaseDiscoveryStrategy(logger)
 {
     private readonly CommandFactory _commandFactory = commandFactory;
     private readonly IServiceProvider _serviceProvider = serviceProvider;
+    private readonly ITelemetryService _telemetryService = telemetryService;
     private readonly IOptions<ServiceStartOptions> _options = options;
+    private readonly IOptions<AzureMcpServerConfiguration> _serverConfigurationOptions = serverConfigurationOptions;
+    private readonly ILogger<CommandFactory> _commandFactoryLogger = commandFactoryLogger;
     private CommandFactory? _consolidatedCommandFactory;
 
     /// <summary>
@@ -146,14 +157,12 @@ public CommandFactory CreateConsolidatedCommandFactory()
 #endif
 
         // Create a new CommandFactory with all consolidated areas
-        var telemetryService = _serviceProvider.GetRequiredService<ITelemetryService>();
-        var factoryLogger = _serviceProvider.GetRequiredService<ILogger<CommandFactory>>();
-
         _consolidatedCommandFactory = new CommandFactory(
             _serviceProvider,
             consolidatedAreas,
-            telemetryService,
-            factoryLogger
+            _telemetryService,
+            _serverConfigurationOptions,
+            _commandFactoryLogger
         );
 
         return _consolidatedCommandFactory;
diff --git a/core/Azure.Mcp.Core/src/Areas/Server/Commands/ServiceCollectionExtensions.cs b/core/Azure.Mcp.Core/src/Areas/Server/Commands/ServiceCollectionExtensions.cs
index 7c5713c364..37e198f816 100644
--- a/core/Azure.Mcp.Core/src/Areas/Server/Commands/ServiceCollectionExtensions.cs
+++ b/core/Azure.Mcp.Core/src/Areas/Server/Commands/ServiceCollectionExtensions.cs
@@ -8,7 +8,9 @@
 using Azure.Mcp.Core.Areas.Server.Commands.ToolLoading;
 using Azure.Mcp.Core.Areas.Server.Options;
 using Azure.Mcp.Core.Commands;
+using Azure.Mcp.Core.Configuration;
 using Azure.Mcp.Core.Helpers;
+using Microsoft.Extensions.Configuration;
 using Microsoft.Extensions.DependencyInjection;
 using Microsoft.Extensions.Logging;
 using Microsoft.Extensions.Options;
@@ -25,8 +27,6 @@ namespace Azure.Mcp.Core.Areas.Server.Commands;
 /// </summary>
 public static class AzureMcpServiceCollectionExtensions
 {
-    private const string DefaultServerName = "Azure MCP Server";
-
     /// <summary>
     /// Adds the Azure MCP server services to the specified <see cref="IServiceCollection"/>.
     /// </summary>
@@ -42,26 +42,51 @@ public static IServiceCollection AddAzureMcpServer(this IServiceCollection servi
         services.AddSingleton(serviceStartOptions);
         services.AddSingleton(Options.Create(serviceStartOptions));
 
-        // Register default tool loader options from service start options
-        var defaultToolLoaderOptions = new ToolLoaderOptions
-        {
-            Namespace = serviceStartOptions.Namespace,
-            ReadOnly = serviceStartOptions.ReadOnly ?? false,
-            InsecureDisableElicitation = serviceStartOptions.InsecureDisableElicitation,
-            Tool = serviceStartOptions.Tool,
-        };
+        // Register MCP runtimes
+        services.AddSingleton<IMcpRuntime, McpRuntime>();
 
-        if (serviceStartOptions.Mode == ModeTypes.NamespaceProxy)
+        ConfigureToolLoadersAndDiscoveryStrategies(services, serviceStartOptions);
+
+        var mcpServerOptions = services.AddOptions<McpServerOptions>()
+            .Configure<IMcpRuntime, IOptions<AzureMcpServerConfiguration>>(
+                (mcpServerOptions, mcpRuntime, serverConfig) =>
+                {
+
+                    var entryAssembly = Assembly.GetEntryAssembly();
+
+                    mcpServerOptions.ProtocolVersion = "2024-11-05";
+                    mcpServerOptions.ServerInfo = new Implementation
+                    {
+                        Name = serverConfig.Value.Name,
+                        Version = serverConfig.Value.Version
+                    };
+
+                    mcpServerOptions.Handlers = new()
+                    {
+                        CallToolHandler = mcpRuntime.CallToolHandler,
+                        ListToolsHandler = mcpRuntime.ListToolsHandler,
+                    };
+
+                    // Add instructions for the server
+                    mcpServerOptions.ServerInstructions = GetServerInstructions();
+                });
+
+        var mcpServerBuilder = services.AddMcpServer();
+
+        if (serviceStartOptions.Transport == TransportTypes.Http)
         {
-            if (defaultToolLoaderOptions.Namespace == null || defaultToolLoaderOptions.Namespace.Length == 0)
-            {
-                defaultToolLoaderOptions = defaultToolLoaderOptions with { Namespace = ["extension"] };
-            }
+            mcpServerBuilder.WithHttpTransport();
+        }
+        else
+        {
+            mcpServerBuilder.WithStdioServerTransport();
         }
 
-        services.AddSingleton(defaultToolLoaderOptions);
-        services.AddSingleton(Options.Create(defaultToolLoaderOptions));
+        return services;
+    }
 
+    internal static void ConfigureToolLoadersAndDiscoveryStrategies(IServiceCollection services, ServiceStartOptions serviceStartOptions)
+    {
         // Register tool loader strategies
         services.AddSingleton<CommandFactoryToolLoader>();
         services.AddSingleton<RegistryToolLoader>();
@@ -77,8 +102,25 @@ public static IServiceCollection AddAzureMcpServer(this IServiceCollection servi
         services.AddSingleton<RegistryDiscoveryStrategy>();
         services.AddSingleton<ConsolidatedToolDiscoveryStrategy>();
 
-        // Register MCP runtimes
-        services.AddSingleton<IMcpRuntime, McpRuntime>();
+        // Register default tool loader options from service start options
+        var defaultToolLoaderOptions = new ToolLoaderOptions
+        {
+            Namespace = serviceStartOptions.Namespace,
+            ReadOnly = serviceStartOptions.ReadOnly ?? false,
+            InsecureDisableElicitation = serviceStartOptions.InsecureDisableElicitation,
+            Tool = serviceStartOptions.Tool,
+        };
+
+        if (serviceStartOptions.Mode == ModeTypes.NamespaceProxy)
+        {
+            if (defaultToolLoaderOptions.Namespace == null || defaultToolLoaderOptions.Namespace.Length == 0)
+            {
+                defaultToolLoaderOptions = defaultToolLoaderOptions with { Namespace = ["extension"] };
+            }
+        }
+
+        services.AddSingleton(defaultToolLoaderOptions);
+        services.AddSingleton(Options.Create(defaultToolLoaderOptions));
 
         // Register MCP discovery strategies based on proxy mode
         if (serviceStartOptions.Mode == ModeTypes.SingleToolProxy)
@@ -207,45 +249,74 @@ public static IServiceCollection AddAzureMcpServer(this IServiceCollection servi
                 return new CompositeToolLoader(toolLoaders, loggerFactory.CreateLogger<CompositeToolLoader>());
             });
         }
+    }
 
-        var mcpServerOptions = services
-            .AddOptions<McpServerOptions>()
-            .Configure<IMcpRuntime>((mcpServerOptions, mcpRuntime) =>
+    /// <summary>
+    /// Using <see cref="IConfiguration"/> configures <see cref="AzureMcpServerConfiguration"/>.
+    /// </summary>
+    /// <param name="services">Service Collection to add configuration logic to.</param>
+    public static void ConfigureMcpServerOptions(this IServiceCollection services)
+    {
+        services.AddOptions<AzureMcpServerConfiguration>()
+            .BindConfiguration(string.Empty)
+            .Configure<IConfiguration, IOptions<ServiceStartOptions>>((options, rootConfiguration, serviceStartOptions) =>
             {
-                var mcpServerOptionsBuilder = services.AddOptions<McpServerOptions>();
-                var entryAssembly = Assembly.GetEntryAssembly();
-                var assemblyName = entryAssembly?.GetName();
-                var serverName = entryAssembly?.GetCustomAttribute<AssemblyTitleAttribute>()?.Title ?? DefaultServerName;
+                var collectTelemetry = rootConfiguration.GetValue<bool?>("AZURE_MCP_COLLECT_TELEMETRY");
+                var isOtelExporterEnabled = rootConfiguration.GetValue<bool?>("AZURE_MCP_ENABLE_OTLP_EXPORTER");
+                var applicationInsightsString = rootConfiguration.GetValue<string?>("APPLICATIONINSIGHTS_CONNECTION_STRING");
 
-                mcpServerOptions.ProtocolVersion = "2024-11-05";
-                mcpServerOptions.ServerInfo = new Implementation
-                {
-                    Name = serverName,
-                    Version = assemblyName?.Version?.ToString() ?? "1.0.0-beta"
-                };
+                var transport = serviceStartOptions.Value.Transport;
+                var isTelemetryEnabledEnvironment = collectTelemetry.HasValue
+                    ? collectTelemetry.Value
+                    : true;
+                var isStdioTransport = string.IsNullOrEmpty(transport)
+                    || string.Equals(transport, TransportTypes.StdIo, StringComparison.OrdinalIgnoreCase);
 
-                mcpServerOptions.Handlers = new()
+                var entryAssembly = Assembly.GetEntryAssembly();
+                if (entryAssembly == null)
                 {
-                    CallToolHandler = mcpRuntime.CallToolHandler,
-                    ListToolsHandler = mcpRuntime.ListToolsHandler,
-                };
+                    throw new InvalidOperationException("Should be a managed assembly as entry assembly.");
+                }
+
+                options.Version = GetServerVersion(entryAssembly);
+                options.ApplicationInsightsConnectionString = applicationInsightsString;
 
-                // Add instructions for the server
-                mcpServerOptions.ServerInstructions = GetServerInstructions();
+                // if transport is not set (default to stdio) or is set to stdio, enable telemetry
+                // telemetry is disabled for HTTP transport
+                options.IsTelemetryEnabled = isTelemetryEnabledEnvironment && isStdioTransport;
+                options.IsOtelExporterEnabled = isOtelExporterEnabled.HasValue
+                    ? isOtelExporterEnabled.Value
+                    : false;
             });
 
-        var mcpServerBuilder = services.AddMcpServer();
+        services.AddSingleton<IValidateOptions<AzureMcpServerConfiguration>, AzureMcpServerConfigurationValidator>();
+    }
 
-        if (serviceStartOptions.Transport == TransportTypes.Http)
+    /// <summary>
+    /// Gets the version information for the server.  Uses logic from Azure SDK for .NET to generate the same version string.
+    /// https://github.com/Azure/azure-sdk-for-net/blob/main/sdk/core/System.ClientModel/src/Pipeline/UserAgentPolicy.cs#L91
+    /// For example, an informational version of "6.14.0-rc.116+54d611f7" will return "6.14.0-rc.116"
+    /// </summary>
+    /// <param name="entryAssembly">The caller assembly to extract name and version information from.</param>
+    /// <returns>A version string.</returns>
+    internal static string GetServerVersion(Assembly entryAssembly)
+    {
+        AssemblyInformationalVersionAttribute? versionAttribute = entryAssembly.GetCustomAttribute<AssemblyInformationalVersionAttribute>();
+        if (versionAttribute == null)
         {
-            mcpServerBuilder.WithHttpTransport();
+            throw new InvalidOperationException(
+                $"{nameof(AssemblyInformationalVersionAttribute)} is required on client SDK assembly '{entryAssembly.FullName}'.");
         }
-        else
+
+        string version = versionAttribute.InformationalVersion;
+
+        int hashSeparator = version.IndexOf('+');
+        if (hashSeparator != -1)
         {
-            mcpServerBuilder.WithStdioServerTransport();
+            version = version.Substring(0, hashSeparator);
         }
 
-        return services;
+        return version;
     }
 
     /// <summary>
diff --git a/core/Azure.Mcp.Core/src/Areas/Server/Commands/ServiceStartCommand.cs b/core/Azure.Mcp.Core/src/Areas/Server/Commands/ServiceStartCommand.cs
index 84ba7d534d..1ae8927e9d 100644
--- a/core/Azure.Mcp.Core/src/Areas/Server/Commands/ServiceStartCommand.cs
+++ b/core/Azure.Mcp.Core/src/Areas/Server/Commands/ServiceStartCommand.cs
@@ -14,9 +14,11 @@
 using Microsoft.AspNetCore.Builder;
 using Microsoft.AspNetCore.Hosting;
 using Microsoft.AspNetCore.Http;
+using Microsoft.Extensions.Configuration;
 using Microsoft.Extensions.DependencyInjection;
 using Microsoft.Extensions.Hosting;
 using Microsoft.Extensions.Logging;
+using Microsoft.Extensions.Logging.Console;
 using Microsoft.Extensions.Options;
 using Microsoft.Identity.Web;
 using OpenTelemetry.Logs;
@@ -55,7 +57,7 @@ public sealed class ServiceStartCommand : BaseCommand<ServiceStartOptions>
     /// </summary>
     public override ToolMetadata Metadata => new() { Destructive = false, ReadOnly = true };
 
-    public static Action<IServiceCollection> ConfigureServices { get; set; } = _ => { };
+    public static Action<IHostApplicationBuilder> ConfigureServices { get; set; } = (_) => { };
 
     public static Func<IServiceProvider, Task> InitializeServicesAsync { get; set; } = _ => Task.CompletedTask;
 
@@ -332,41 +334,39 @@ private IHost CreateHost(ServiceStartOptions serverOptions)
     /// <returns>An IHost instance configured for STDIO transport.</returns>
     private IHost CreateStdioHost(ServiceStartOptions serverOptions)
     {
-        return Host.CreateDefaultBuilder()
-            .ConfigureLogging(logging =>
-            {
-                logging.ClearProviders();
-                logging.ConfigureOpenTelemetryLogger();
-                logging.AddEventSourceLogger();
+        var builder = Host.CreateApplicationBuilder();
 
-                if (serverOptions.Debug)
-                {
-                    // Configure console logger to emit Debug+ to stderr so tests can capture logs from StandardError
-                    logging.AddConsole(options =>
-                    {
-                        options.LogToStandardErrorThreshold = LogLevel.Debug;
-                        options.FormatterName = Microsoft.Extensions.Logging.Console.ConsoleFormatterNames.Simple;
-                    });
-                    logging.AddSimpleConsole(simple =>
-                    {
-                        simple.ColorBehavior = Microsoft.Extensions.Logging.Console.LoggerColorBehavior.Disabled;
-                        simple.IncludeScopes = false;
-                        simple.SingleLine = true;
-                        simple.TimestampFormat = "[HH:mm:ss] ";
-                    });
-                    logging.AddFilter("Microsoft.Extensions.Logging.Console.ConsoleLoggerProvider", LogLevel.Debug);
-                    logging.SetMinimumLevel(LogLevel.Debug);
-                }
-            })
-            .ConfigureServices(services =>
+        var logging = builder.Logging;
+
+        logging.ClearProviders();
+        logging.AddEventSourceLogger();
+
+        if (serverOptions.Debug)
+        {
+            // Configure console logger to emit Debug+ to stderr so tests can capture logs from StandardError
+            logging.AddConsole(options =>
+            {
+                options.LogToStandardErrorThreshold = LogLevel.Debug;
+                options.FormatterName = ConsoleFormatterNames.Simple;
+            });
+            logging.AddSimpleConsole(simple =>
             {
-                // Configure the outgoing authentication strategy.
-                services.AddSingleIdentityTokenCredentialProvider();
+                simple.ColorBehavior = LoggerColorBehavior.Disabled;
+                simple.IncludeScopes = false;
+                simple.SingleLine = true;
+                simple.TimestampFormat = "[HH:mm:ss] ";
+            });
+            logging.AddFilter("Microsoft.Extensions.Logging.Console.ConsoleLoggerProvider", LogLevel.Debug);
+            logging.SetMinimumLevel(LogLevel.Debug);
+        }
+
+        // Configure the outgoing authentication strategy.
+        builder.Services.AddSingleIdentityTokenCredentialProvider();
+
+        ConfigureServices(builder);
+        ConfigureMcpServer(builder.Services, serverOptions);
 
-                ConfigureServices(services);
-                ConfigureMcpServer(services, serverOptions);
-            })
-            .Build();
+        return builder.Build();
     }
 
     /// <summary>
@@ -380,7 +380,6 @@ private IHost CreateHttpHost(ServiceStartOptions serverOptions)
 
         // Configure logging
         builder.Logging.ClearProviders();
-        builder.Logging.ConfigureOpenTelemetryLogger();
         builder.Logging.AddEventSourceLogger();
         builder.Logging.AddConsole();
 
@@ -465,7 +464,7 @@ private IHost CreateHttpHost(ServiceStartOptions serverOptions)
         });
 
         // Configure services
-        ConfigureServices(services); // Our static callback hook
+        ConfigureServices(builder); // Our static callback hook
         ConfigureMcpServer(services, serverOptions);
 
         WebApplication app = builder.Build();
@@ -555,7 +554,6 @@ private IHost CreateIncomingAuthDisabledHttpHost(ServiceStartOptions serverOptio
 
         // Configure logging
         builder.Logging.ClearProviders();
-        builder.Logging.ConfigureOpenTelemetryLogger();
         builder.Logging.AddEventSourceLogger();
         builder.Logging.AddConsole();
 
@@ -579,7 +577,7 @@ private IHost CreateIncomingAuthDisabledHttpHost(ServiceStartOptions serverOptio
         });
 
         // Configure services
-        ConfigureServices(services); // Our static callback hook
+        ConfigureServices(builder); // Our static callback hook
         ConfigureMcpServer(services, serverOptions);
 
         // We still use the multi-user, HTTP context-aware caching strategy here
diff --git a/core/Azure.Mcp.Core/src/Azure.Mcp.Core.csproj b/core/Azure.Mcp.Core/src/Azure.Mcp.Core.csproj
index 094e8ce931..53ed202815 100644
--- a/core/Azure.Mcp.Core/src/Azure.Mcp.Core.csproj
+++ b/core/Azure.Mcp.Core/src/Azure.Mcp.Core.csproj
@@ -1,6 +1,8 @@
 <Project Sdk="Microsoft.NET.Sdk">
   <PropertyGroup>
     <IsAotCompatible>true</IsAotCompatible>
+    <!-- Enable strongly typed binding for IConfiguration to support AOT and trimming. -->
+    <EnableConfigurationBindingGenerator>true</EnableConfigurationBindingGenerator>
     <AllowUnsafeBlocks>true</AllowUnsafeBlocks>
   </PropertyGroup>
 
diff --git a/core/Azure.Mcp.Core/src/Commands/CommandFactory.cs b/core/Azure.Mcp.Core/src/Commands/CommandFactory.cs
index 6e54a20056..fd2163f9ca 100644
--- a/core/Azure.Mcp.Core/src/Commands/CommandFactory.cs
+++ b/core/Azure.Mcp.Core/src/Commands/CommandFactory.cs
@@ -8,8 +8,10 @@
 using System.Text.Encodings.Web;
 using System.Text.Json.Serialization;
 using Azure.Mcp.Core.Areas;
+using Azure.Mcp.Core.Configuration;
 using Azure.Mcp.Core.Services.Telemetry;
 using Microsoft.Extensions.Logging;
+using Microsoft.Extensions.Options;
 using static Azure.Mcp.Core.Services.Telemetry.TelemetryConstants;
 
 namespace Azure.Mcp.Core.Commands;
@@ -22,6 +24,7 @@ public class CommandFactory
     private readonly RootCommand _rootCommand;
     private readonly CommandGroup _rootGroup;
     private readonly ModelsJsonContext _srcGenWithOptions;
+    private readonly string _serverName;
 
     public const char Separator = '_';
 
@@ -47,14 +50,17 @@ public override void Write(Utf8JsonWriter writer, string value, JsonSerializerOp
         }
     }
 
-    internal const string RootCommandGroupName = "azmcp";
-
-    public CommandFactory(IServiceProvider serviceProvider, IEnumerable<IAreaSetup> serviceAreas, ITelemetryService telemetryService, ILogger<CommandFactory> logger)
+    public CommandFactory(IServiceProvider serviceProvider,
+        IEnumerable<IAreaSetup> serviceAreas,
+        ITelemetryService telemetryService,
+        IOptions<AzureMcpServerConfiguration> serverConfig,
+        ILogger<CommandFactory> logger)
     {
         _serviceAreas = serviceAreas?.ToArray() ?? throw new ArgumentNullException(nameof(serviceAreas));
         _serviceProvider = serviceProvider;
         _logger = logger;
-        _rootGroup = new CommandGroup(RootCommandGroupName, "Azure MCP Server");
+        _serverName = serverConfig.Value.Name;
+        _rootGroup = new CommandGroup(_serverName, serverConfig.Value.DisplayName);
         _rootCommand = CreateRootCommand();
         _commandMap = CreateCommandDictionary(_rootGroup);
         _telemetryService = telemetryService;
@@ -136,7 +142,7 @@ private void RegisterCommandGroup()
 
             // Create a temporary root node to register all the area's subgroups and commands to.
             // Use this to create the mapping of all commands to that area.
-            var tempRoot = new CommandGroup(RootCommandGroupName, string.Empty);
+            var tempRoot = new CommandGroup(_serverName, string.Empty);
             tempRoot.AddSubGroup(commandTree);
 
             var commandDictionary = CreateCommandDictionary(tempRoot);
diff --git a/core/Azure.Mcp.Core/src/Configuration/AzureMcpServerConfiguration.cs b/core/Azure.Mcp.Core/src/Configuration/AzureMcpServerConfiguration.cs
index aa2c922a33..83812e4c0a 100644
--- a/core/Azure.Mcp.Core/src/Configuration/AzureMcpServerConfiguration.cs
+++ b/core/Azure.Mcp.Core/src/Configuration/AzureMcpServerConfiguration.cs
@@ -1,15 +1,53 @@
 // Copyright (c) Microsoft Corporation.
 // Licensed under the MIT License.
 
+using System.ComponentModel.DataAnnotations;
+
 namespace Azure.Mcp.Core.Configuration;
 
+/// <summary>
+/// Configuration settings for the MCP server.
+/// </summary>
 public class AzureMcpServerConfiguration
 {
-    public const string DefaultName = "Azure.Mcp.Server";
+    /// <summary>
+    /// The default prefix for the MCP server commands and help menus.
+    /// </summary>
+    [Required]
+    public required string Prefix { get; set; }
+
+    /// <summary>
+    /// The name of the MCP server. (i.e. Azure.Mcp.Server)
+    /// </summary>
+    [Required]
+    public required string Name { get; set; }
 
-    public string Name { get; set; } = DefaultName;
+    /// <summary>
+    /// The display name of the MCP server.
+    /// </summary>
+    [Required]
+    public required string DisplayName { get; set; }
 
-    public string Version { get; set; } = "1.0.0-beta";
+    /// <summary>
+    /// The version of the MCP server.
+    /// </summary>
+    [Required]
+    public required string Version { get; set; }
 
+    /// <summary>
+    /// Indicates whether telemetry is enabled.
+    /// </summary>
+    [Required]
     public bool IsTelemetryEnabled { get; set; } = true;
+
+    /// <summary>
+    /// Indicates whether to enable Open Telemetry Exporter when <see cref="IsTelemetryEnabled"/> is true.
+    /// </summary
+    [Required]
+    public bool IsOtelExporterEnabled { get; set; } = false;
+
+    /// <summary>
+    /// The application insights connection string to use if <see cref="IsTelemetryEnabled"/> is true.
+    /// </summary>
+    public string? ApplicationInsightsConnectionString { get; set; }
 }
diff --git a/core/Azure.Mcp.Core/src/Configuration/AzureMcpServerConfigurationValidator.cs b/core/Azure.Mcp.Core/src/Configuration/AzureMcpServerConfigurationValidator.cs
new file mode 100644
index 0000000000..adca039315
--- /dev/null
+++ b/core/Azure.Mcp.Core/src/Configuration/AzureMcpServerConfigurationValidator.cs
@@ -0,0 +1,11 @@
+// Copyright (c) Microsoft Corporation.
+// Licensed under the MIT License.
+
+using Microsoft.Extensions.Options;
+
+namespace Azure.Mcp.Core.Configuration;
+
+[OptionsValidator]
+public partial class AzureMcpServerConfigurationValidator : IValidateOptions<AzureMcpServerConfiguration>
+{
+}
diff --git a/core/Azure.Mcp.Core/src/Extensions/OpenTelemetryExtensions.cs b/core/Azure.Mcp.Core/src/Extensions/OpenTelemetryExtensions.cs
index cbb7fc19fa..e3bc8c8c14 100644
--- a/core/Azure.Mcp.Core/src/Extensions/OpenTelemetryExtensions.cs
+++ b/core/Azure.Mcp.Core/src/Extensions/OpenTelemetryExtensions.cs
@@ -1,14 +1,14 @@
 // Copyright (c) Microsoft Corporation.
 // Licensed under the MIT License.
 
-using System.Reflection;
 using System.Runtime.InteropServices;
-using Azure.Mcp.Core.Areas.Server.Options;
 using Azure.Mcp.Core.Configuration;
 using Azure.Mcp.Core.Services.Telemetry;
 using Azure.Monitor.OpenTelemetry.Exporter; // Don't believe this is unused, it is needed for UseAzureMonitorExporter
 using Microsoft.Extensions.Azure;
+using Microsoft.Extensions.Configuration;
 using Microsoft.Extensions.DependencyInjection;
+using Microsoft.Extensions.Hosting;
 using Microsoft.Extensions.Logging;
 using Microsoft.Extensions.Options;
 using OpenTelemetry.Logs;
@@ -20,34 +20,9 @@ namespace Azure.Mcp.Core.Extensions;
 
 public static class OpenTelemetryExtensions
 {
-    private const string DefaultAppInsights = "InstrumentationKey=21e003c0-efee-4d3f-8a98-1868515aa2c9;IngestionEndpoint=https://centralus-2.in.applicationinsights.azure.com/;LiveEndpoint=https://centralus.livediagnostics.monitor.azure.com/;ApplicationId=f14f6a2d-6405-4f88-bd58-056f25fe274f";
-
-    public static void ConfigureOpenTelemetry(this IServiceCollection services)
+    public static void ConfigureTelemetryServices(this IServiceCollection services,
+        IHostEnvironment hostEnvironment, IConfiguration configuration)
     {
-        services.AddOptions<AzureMcpServerConfiguration>()
-            .Configure<IOptions<ServiceStartOptions>>((options, serviceStartOptions) =>
-            {
-                // Assembly.GetEntryAssembly is used to retrieve the version of the server application as that is
-                // the assembly that will run the tool calls.
-                var entryAssembly = Assembly.GetEntryAssembly();
-                if (entryAssembly != null)
-                {
-                    options.Version = GetServerVersion(entryAssembly);
-                }
-
-                var collectTelemetry = Environment.GetEnvironmentVariable("AZURE_MCP_COLLECT_TELEMETRY");
-
-                var transport = serviceStartOptions.Value.Transport;
-
-                bool isTelemetryEnabledEnvironment = string.IsNullOrEmpty(collectTelemetry) || (bool.TryParse(collectTelemetry, out var shouldCollect) && shouldCollect);
-
-                bool isStdioTransport = string.IsNullOrEmpty(transport) || string.Equals(transport, "stdio", StringComparison.OrdinalIgnoreCase);
-
-                // if transport is not set (default to stdio) or is set to stdio, enable telemetry
-                // telemetry is disabled for HTTP transport
-                options.IsTelemetryEnabled = isTelemetryEnabledEnvironment && isStdioTransport;
-            });
-
         services.AddSingleton<ITelemetryService, TelemetryService>();
 
         if (RuntimeInformation.IsOSPlatform(OSPlatform.Windows))
@@ -67,95 +42,104 @@ public static void ConfigureOpenTelemetry(this IServiceCollection services)
             services.AddSingleton<IMachineInformationProvider, DefaultMachineInformationProvider>();
         }
 
-        EnableAzureMonitor(services);
+        ConfigureOpenTelemetry(services, hostEnvironment, configuration);
     }
 
-    public static void ConfigureOpenTelemetryLogger(this ILoggingBuilder builder)
+    private static void ConfigureOpenTelemetry(this IServiceCollection services,
+        IHostEnvironment hostEnvironment,
+        IConfiguration configuration)
     {
-        builder.AddOpenTelemetry(logger =>
+        if (hostEnvironment.IsDevelopment())
         {
-            logger.AddProcessor(new TelemetryLogRecordEraser());
-        });
-    }
+            services.AddSingleton(sp =>
+            {
+                var logger = sp.GetRequiredService<ILoggerFactory>();
+                var forwarder = new AzureEventSourceLogForwarder(logger);
+                forwarder.Start();
+                return forwarder;
+            });
+        }
 
-    private static void EnableAzureMonitor(this IServiceCollection services)
-    {
-#if DEBUG
-        services.AddSingleton(sp =>
-        {
-            var forwarder = new AzureEventSourceLogForwarder(sp.GetRequiredService<ILoggerFactory>());
-            forwarder.Start();
-            return forwarder;
-        });
-#endif
+        services.AddSingleton<IResourceDetector, AzureMcpServerResourceDetector>();
 
-        var appInsightsConnectionString = Environment.GetEnvironmentVariable("APPLICATIONINSIGHTS_CONNECTION_STRING");
+        // Note: Turn on all the signals for metrics, tracing, and logging.
+        // The configuration for each of these components is done further down
+        // because we need to resolve classes using IServiceProvider.
+        //
+        // There is a single resource we gather information from.
+        var otelBuilder = services.AddOpenTelemetry()
+            .ConfigureResource(builder =>
+            {
+                builder.AddDetector(sp => sp.GetRequiredService<IResourceDetector>());
+            })
+            .WithMetrics()
+            .WithTracing()
+            .WithLogging(builder =>
+            {
+                builder.AddProcessor(new TelemetryLogRecordEraser());
+            });
 
-        if (string.IsNullOrEmpty(appInsightsConnectionString))
+        // Metrics configuration
+        services.ConfigureOpenTelemetryMeterProvider((sp, builder) =>
         {
-            appInsightsConnectionString = DefaultAppInsights;
-        }
+            var config = sp.GetRequiredService<IOptions<AzureMcpServerConfiguration>>().Value;
+            if (!config.IsTelemetryEnabled)
+            {
+                return;
+            }
+
+            builder.AddAzureMonitorMetricExporter(options =>
+            {
+                options.ConnectionString = config.ApplicationInsightsConnectionString;
+            });
 
+            if (config.IsOtelExporterEnabled)
+            {
+                builder.AddOtlpExporter();
+            }
+        });
+
+        // Tracer configuration
         services.ConfigureOpenTelemetryTracerProvider((sp, builder) =>
         {
-            var serverConfig = sp.GetRequiredService<IOptions<AzureMcpServerConfiguration>>();
-            if (!serverConfig.Value.IsTelemetryEnabled)
+            var config = sp.GetRequiredService<IOptions<AzureMcpServerConfiguration>>().Value;
+            if (!config.IsTelemetryEnabled)
             {
                 return;
             }
 
-            builder.AddSource(serverConfig.Value.Name);
-        });
+            // Matches the ActivitySource created in ITelemetryService.
+            builder.AddSource(config.Name);
 
-        var otelBuilder = services.AddOpenTelemetry()
-            .ConfigureResource(r =>
+            builder.AddAzureMonitorTraceExporter(options =>
             {
-                var version = Assembly.GetExecutingAssembly()?.GetName()?.Version?.ToString();
-
-                r.AddService("azmcp", version)
-                    .AddTelemetrySdk();
+                options.ConnectionString = config.ApplicationInsightsConnectionString;
             });
 
-#if RELEASE
-        otelBuilder.UseAzureMonitorExporter(options =>
-        {
-            options.ConnectionString = appInsightsConnectionString;
+            if (config.IsOtelExporterEnabled)
+            {
+                builder.AddOtlpExporter();
+            }
         });
-#endif
 
-        var enableOtlp = Environment.GetEnvironmentVariable("AZURE_MCP_ENABLE_OTLP_EXPORTER");
-        if (!string.IsNullOrEmpty(enableOtlp) && bool.TryParse(enableOtlp, out var shouldEnable) && shouldEnable)
+        // Tracer configuration
+        services.ConfigureOpenTelemetryLoggerProvider((sp, builder) =>
         {
-            otelBuilder.WithTracing(tracing => tracing.AddOtlpExporter())
-                .WithMetrics(metrics => metrics.AddOtlpExporter())
-                .WithLogging(logging => logging.AddOtlpExporter());
-        }
-    }
-
-    /// <summary>
-    /// Gets the version information for the server.  Uses logic from Azure SDK for .NET to generate the same version string.
-    /// https://github.com/Azure/azure-sdk-for-net/blob/main/sdk/core/System.ClientModel/src/Pipeline/UserAgentPolicy.cs#L91
-    /// For example, an informational version of "6.14.0-rc.116+54d611f7" will return "6.14.0-rc.116"
-    /// </summary>
-    /// <param name="entryAssembly">The entry assembly to extract name and version information from.</param>
-    /// <returns>A version string.</returns>
-    internal static string GetServerVersion(Assembly entryAssembly)
-    {
-        AssemblyInformationalVersionAttribute? versionAttribute = entryAssembly.GetCustomAttribute<AssemblyInformationalVersionAttribute>();
-        if (versionAttribute == null)
-        {
-            throw new InvalidOperationException(
-                $"{nameof(AssemblyInformationalVersionAttribute)} is required on client SDK assembly '{entryAssembly.FullName}'.");
-        }
-
-        string version = versionAttribute.InformationalVersion;
+            var config = sp.GetRequiredService<IOptions<AzureMcpServerConfiguration>>().Value;
+            if (!config.IsTelemetryEnabled)
+            {
+                return;
+            }
 
-        int hashSeparator = version.IndexOf('+');
-        if (hashSeparator != -1)
-        {
-            version = version.Substring(0, hashSeparator);
-        }
+            builder.AddAzureMonitorLogExporter(options =>
+            {
+                options.ConnectionString = config.ApplicationInsightsConnectionString;
+            });
 
-        return version;
+            if (config.IsOtelExporterEnabled)
+            {
+                builder.AddOtlpExporter();
+            }
+        });
     }
 }
diff --git a/core/Azure.Mcp.Core/src/Services/Telemetry/AzureMcpServerResourceDetector.cs b/core/Azure.Mcp.Core/src/Services/Telemetry/AzureMcpServerResourceDetector.cs
new file mode 100644
index 0000000000..f59c8c25b4
--- /dev/null
+++ b/core/Azure.Mcp.Core/src/Services/Telemetry/AzureMcpServerResourceDetector.cs
@@ -0,0 +1,26 @@
+// Copyright (c) Microsoft Corporation.
+// Licensed under the MIT License.
+
+using Azure.Mcp.Core.Configuration;
+using Microsoft.Extensions.Options;
+using OpenTelemetry.Resources;
+
+namespace Azure.Mcp.Core.Services.Telemetry;
+
+/// <summary>
+/// Adds the MCP server as an application to gather telemetry from.
+/// </summary>
+/// <param name="serverConfiguration">MCP server configuration</param>
+public class AzureMcpServerResourceDetector(IOptions<AzureMcpServerConfiguration> serverConfiguration)
+    : IResourceDetector
+{
+    private readonly AzureMcpServerConfiguration _serverConfiguration = serverConfiguration.Value;
+
+    public Resource Detect()
+    {
+        return ResourceBuilder.CreateDefault()
+            .AddService(_serverConfiguration.Prefix, serviceVersion: _serverConfiguration.Version)
+            .AddTelemetrySdk()
+            .Build();
+    }
+}
diff --git a/core/Azure.Mcp.Core/tests/Azure.Mcp.Core.UnitTests/Areas/Server/CommandFactoryHelpers.cs b/core/Azure.Mcp.Core/tests/Azure.Mcp.Core.UnitTests/Areas/Server/CommandFactoryHelpers.cs
index 311ebc196a..420f8a966b 100644
--- a/core/Azure.Mcp.Core/tests/Azure.Mcp.Core.UnitTests/Areas/Server/CommandFactoryHelpers.cs
+++ b/core/Azure.Mcp.Core/tests/Azure.Mcp.Core.UnitTests/Areas/Server/CommandFactoryHelpers.cs
@@ -5,9 +5,11 @@
 using Azure.Mcp.Core.Areas;
 using Azure.Mcp.Core.Areas.Group;
 using Azure.Mcp.Core.Areas.Server;
+using Azure.Mcp.Core.Areas.Server.Options;
 using Azure.Mcp.Core.Areas.Subscription;
 using Azure.Mcp.Core.Areas.Tools;
 using Azure.Mcp.Core.Commands;
+using Azure.Mcp.Core.Configuration;
 using Azure.Mcp.Core.Services.Telemetry;
 using Azure.Mcp.Tools.Acr;
 using Azure.Mcp.Tools.Aks;
@@ -21,6 +23,7 @@
 using Azure.Mcp.Tools.CloudArchitect;
 using Azure.Mcp.Tools.Cosmos;
 using Azure.Mcp.Tools.Deploy;
+using Azure.Mcp.Tools.Deploy.Services.Util;
 using Azure.Mcp.Tools.EventGrid;
 using Azure.Mcp.Tools.Extension;
 using Azure.Mcp.Tools.Foundry;
@@ -45,6 +48,7 @@
 using Azure.Mcp.Tools.Workbooks;
 using Microsoft.Extensions.DependencyInjection;
 using Microsoft.Extensions.Logging;
+using Microsoft.Extensions.Options;
 using ModelContextProtocol.Protocol;
 
 namespace Azure.Mcp.Core.UnitTests.Areas.Server;
@@ -98,7 +102,8 @@ public static CommandFactory CreateCommandFactory(IServiceProvider? serviceProvi
         var services = serviceProvider ?? CreateDefaultServiceProvider();
         var logger = services.GetRequiredService<ILogger<CommandFactory>>();
         var telemetryService = services.GetService<ITelemetryService>() ?? new NoOpTelemetryService();
-        var commandFactory = new CommandFactory(services, areaSetups, telemetryService, logger);
+        var serviceOptions = services.GetRequiredService<IOptions<AzureMcpServerConfiguration>>();
+        var commandFactory = new CommandFactory(services, areaSetups, telemetryService, serviceOptions, logger);
 
         return commandFactory;
     }
@@ -110,6 +115,14 @@ public static IServiceProvider CreateDefaultServiceProvider()
 
     public static IServiceCollection SetupCommonServices()
     {
+        var mcpServerConfiguration = new AzureMcpServerConfiguration
+        {
+            DisplayName = "Test Display Name",
+            Name = "Test.Mcp.Server",
+            Prefix = "test-azmcp",
+            Version = "0.0.1-beta.1",
+            IsTelemetryEnabled = true,
+        };
         IAreaSetup[] areaSetups = [
             // Core areas
             new SubscriptionSetup(),
@@ -154,6 +167,7 @@ public static IServiceCollection SetupCommonServices()
 
         var builder = new ServiceCollection()
             .AddLogging()
+            .AddSingleton(Microsoft.Extensions.Options.Options.Create(mcpServerConfiguration))
             .AddSingleton<ITelemetryService, NoOpTelemetryService>();
 
         foreach (var area in areaSetups)
diff --git a/core/Azure.Mcp.Core/tests/Azure.Mcp.Core.UnitTests/Areas/Server/Commands/Discovery/ConsolidatedToolDiscoveryStrategyTests.cs b/core/Azure.Mcp.Core/tests/Azure.Mcp.Core.UnitTests/Areas/Server/Commands/Discovery/ConsolidatedToolDiscoveryStrategyTests.cs
index 3166f295bd..1ae1fafef6 100644
--- a/core/Azure.Mcp.Core/tests/Azure.Mcp.Core.UnitTests/Areas/Server/Commands/Discovery/ConsolidatedToolDiscoveryStrategyTests.cs
+++ b/core/Azure.Mcp.Core/tests/Azure.Mcp.Core.UnitTests/Areas/Server/Commands/Discovery/ConsolidatedToolDiscoveryStrategyTests.cs
@@ -1,12 +1,14 @@
 // Copyright (c) Microsoft Corporation.
 // Licensed under the MIT License.
 
-using Azure.Mcp.Core.Areas;
 using Azure.Mcp.Core.Areas.Server.Commands.Discovery;
-using Azure.Mcp.Core.Areas.Server.Models;
 using Azure.Mcp.Core.Areas.Server.Options;
 using Azure.Mcp.Core.Commands;
+using Azure.Mcp.Core.Configuration;
+using Azure.Mcp.Core.Services.Telemetry;
 using Microsoft.Extensions.DependencyInjection;
+using Microsoft.Extensions.Logging;
+using Microsoft.Extensions.Options;
 using Xunit;
 
 namespace Azure.Mcp.Core.UnitTests.Areas.Server.Commands.Discovery;
@@ -21,8 +23,15 @@ private static ConsolidatedToolDiscoveryStrategy CreateStrategy(
         var factory = commandFactory ?? CommandFactoryHelpers.CreateCommandFactory();
         var serviceProvider = CommandFactoryHelpers.SetupCommonServices().BuildServiceProvider();
         var startOptions = Microsoft.Extensions.Options.Options.Create(options ?? new ServiceStartOptions());
-        var logger = NSubstitute.Substitute.For<Microsoft.Extensions.Logging.ILogger<ConsolidatedToolDiscoveryStrategy>>();
-        var strategy = new ConsolidatedToolDiscoveryStrategy(factory, serviceProvider, startOptions, logger);
+
+        var strategy = new ConsolidatedToolDiscoveryStrategy(factory,
+            serviceProvider,
+            serviceProvider.GetRequiredService<ITelemetryService>(),
+            startOptions,
+            serviceProvider.GetRequiredService<IOptions<AzureMcpServerConfiguration>>(),
+            serviceProvider.GetRequiredService<ILogger<CommandFactory>>(),
+            serviceProvider.GetRequiredService<ILogger<ConsolidatedToolDiscoveryStrategy>>());
+
         if (entryPoint != null)
         {
             strategy.EntryPoint = entryPoint;
diff --git a/core/Azure.Mcp.Core/tests/Azure.Mcp.Core.UnitTests/Areas/Tools/UnitTests/ToolsListCommandTests.cs b/core/Azure.Mcp.Core/tests/Azure.Mcp.Core.UnitTests/Areas/Tools/UnitTests/ToolsListCommandTests.cs
index ccbad378da..db21e9eed5 100644
--- a/core/Azure.Mcp.Core/tests/Azure.Mcp.Core.UnitTests/Areas/Tools/UnitTests/ToolsListCommandTests.cs
+++ b/core/Azure.Mcp.Core/tests/Azure.Mcp.Core.UnitTests/Areas/Tools/UnitTests/ToolsListCommandTests.cs
@@ -9,12 +9,14 @@
 using Azure.Mcp.Core.Areas.Tools.Commands;
 using Azure.Mcp.Core.Areas.Tools.Options;
 using Azure.Mcp.Core.Commands;
+using Azure.Mcp.Core.Configuration;
 using Azure.Mcp.Core.Extensions;
 using Azure.Mcp.Core.Models.Command;
 using Azure.Mcp.Core.Services.Telemetry;
 using Azure.Mcp.Core.UnitTests.Areas.Server;
 using Microsoft.Extensions.DependencyInjection;
 using Microsoft.Extensions.Logging;
+using Microsoft.Extensions.Options;
 using NSubstitute;
 using Xunit;
 
@@ -396,12 +398,14 @@ public async Task ExecuteAsync_WithEmptyCommandFactory_ReturnsEmptyResults()
         var logger = tempServiceProvider.GetRequiredService<ILogger<CommandFactory>>();
         var telemetryService = Substitute.For<ITelemetryService>();
         var emptyAreaSetups = Array.Empty<IAreaSetup>();
+        var serverConfig = Substitute.For<IOptions<AzureMcpServerConfiguration>>();
 
         // Create a NEW service collection just for the empty command factory
         var finalCollection = new ServiceCollection();
         finalCollection.AddLogging();
 
-        var emptyCommandFactory = new CommandFactory(tempServiceProvider, emptyAreaSetups, telemetryService, logger);
+        var emptyCommandFactory = new CommandFactory(tempServiceProvider, emptyAreaSetups,
+            telemetryService, serverConfig, logger);
         finalCollection.AddSingleton(emptyCommandFactory);
 
         var emptyServiceProvider = finalCollection.BuildServiceProvider();
diff --git a/core/Azure.Mcp.Core/tests/Azure.Mcp.Core.UnitTests/Commands/CommandFactoryTests.cs b/core/Azure.Mcp.Core/tests/Azure.Mcp.Core.UnitTests/Commands/CommandFactoryTests.cs
index 3a66b95f27..100d15274f 100644
--- a/core/Azure.Mcp.Core/tests/Azure.Mcp.Core.UnitTests/Commands/CommandFactoryTests.cs
+++ b/core/Azure.Mcp.Core/tests/Azure.Mcp.Core.UnitTests/Commands/CommandFactoryTests.cs
@@ -4,9 +4,11 @@
 using System.CommandLine;
 using Azure.Mcp.Core.Areas;
 using Azure.Mcp.Core.Commands;
+using Azure.Mcp.Core.Configuration;
 using Azure.Mcp.Core.Services.Telemetry;
 using Microsoft.Extensions.DependencyInjection;
 using Microsoft.Extensions.Logging;
+using Microsoft.Extensions.Options;
 using NSubstitute;
 using Xunit;
 
@@ -22,6 +24,8 @@ public class CommandFactoryTests
     private readonly IServiceProvider _serviceProvider;
     private readonly ILogger<CommandFactory> _logger;
     private readonly ITelemetryService _telemetryService;
+    private readonly IOptions<AzureMcpServerConfiguration> _defaultServerConfigurationOptions;
+    private readonly AzureMcpServerConfiguration _defaultServerConfiguration;
 
     public CommandFactoryTests()
     {
@@ -30,6 +34,18 @@ public CommandFactoryTests()
         _serviceProvider = services.BuildServiceProvider();
         _logger = Substitute.For<ILogger<CommandFactory>>();
         _telemetryService = Substitute.For<ITelemetryService>();
+
+        _defaultServerConfiguration = new AzureMcpServerConfiguration
+        {
+            DisplayName = "Command Factory Test Display Name",
+            Name = "Test.Mcp.Server.CommandFactory",
+            Prefix = "test-azmcp-command-factory",
+            Version = "0.0.1-beta.1",
+            IsTelemetryEnabled = false
+        };
+
+        _defaultServerConfigurationOptions = Substitute.For<IOptions<AzureMcpServerConfiguration>>();
+        _defaultServerConfigurationOptions.Value.Returns(_defaultServerConfiguration);
     }
 
     [Fact]
@@ -123,7 +139,7 @@ public void Constructor_Throws_AreaSetups_Duplicate()
 
         // Act & Assert
         Assert.Throws<ArgumentException>(() =>
-            new CommandFactory(_serviceProvider, serviceAreas, _telemetryService, _logger));
+            new CommandFactory(_serviceProvider, serviceAreas, _telemetryService, _defaultServerConfigurationOptions, _logger));
     }
 
     [Fact]
@@ -138,7 +154,7 @@ public void Constructor_Throws_AreaSetups_EmptyName()
 
         // Act & Assert
         Assert.Throws<ArgumentException>(() =>
-            new CommandFactory(_serviceProvider, serviceAreas, _telemetryService, _logger));
+            new CommandFactory(_serviceProvider, serviceAreas, _telemetryService, _defaultServerConfigurationOptions, _logger));
     }
 
     [Theory]
@@ -153,7 +169,7 @@ public void GetServiceArea_Existing_SetupArea(string commandName, string expecte
         var area3 = CreateIAreaSetup("name3");
 
         var serviceAreas = new List<IAreaSetup> { area1, area3, area2 };
-        var factory = new CommandFactory(_serviceProvider, serviceAreas, _telemetryService, _logger);
+        var factory = new CommandFactory(_serviceProvider, serviceAreas, _telemetryService, _defaultServerConfigurationOptions, _logger);
 
         // Act
         // Try in the case that the root prefix is not used.  This is in the case that the tool
@@ -173,7 +189,8 @@ public void GetServiceArea_DoesNotExist()
         var area3 = CreateIAreaSetup("name3");
 
         var serviceAreas = new List<IAreaSetup> { area1, area2, area3 };
-        var factory = new CommandFactory(_serviceProvider, serviceAreas, _telemetryService, _logger);
+        var factory = new CommandFactory(_serviceProvider, serviceAreas, _telemetryService,
+            _defaultServerConfigurationOptions, _logger);
 
         // All commands created in command factory are prefixed with the root command group, "azmcp".
         var commandNameToTry = "azmcp" + CommandFactory.Separator + "name0_subgroup2_directCommand4";
diff --git a/core/Azure.Mcp.Core/tests/Azure.Mcp.Core.UnitTests/Services/Telemetry/TelemetryServiceTests.cs b/core/Azure.Mcp.Core/tests/Azure.Mcp.Core.UnitTests/Services/Telemetry/TelemetryServiceTests.cs
index b75dab5126..87c8918ff4 100644
--- a/core/Azure.Mcp.Core/tests/Azure.Mcp.Core.UnitTests/Services/Telemetry/TelemetryServiceTests.cs
+++ b/core/Azure.Mcp.Core/tests/Azure.Mcp.Core.UnitTests/Services/Telemetry/TelemetryServiceTests.cs
@@ -18,6 +18,8 @@ public class TelemetryServiceTests
     private const string TestMacAddressHash = "test-hash";
     private readonly AzureMcpServerConfiguration _testConfiguration = new()
     {
+        Prefix = "temp-prefix",
+        DisplayName = "Telemetry service display name",
         Name = "TestService",
         Version = "1.0.0",
         IsTelemetryEnabled = true
@@ -147,6 +149,8 @@ public async Task StartActivity_WithInvalidActivityId_ShouldHandleGracefully(str
         // Arrange
         var configuration = new AzureMcpServerConfiguration
         {
+            Prefix = "temp-prefix-a",
+            DisplayName = "Telemetry service display name A",
             Name = "TestService",
             Version = "1.0.0",
             IsTelemetryEnabled = true
@@ -177,6 +181,8 @@ public void StartActivity_WithoutInitialization_Throws()
         // Arrange
         var configuration = new AzureMcpServerConfiguration
         {
+            Prefix = "temp-prefix-a",
+            DisplayName = "Telemetry service display name A",
             Name = "TestService",
             Version = "1.0.0",
             IsTelemetryEnabled = true
@@ -208,11 +214,12 @@ public async Task StartActivity_WhenInitializationFails_Throws()
 
         var configuration = new AzureMcpServerConfiguration
         {
+            Prefix = "temp-prefix-a",
+            DisplayName = "Telemetry service display name A",
             Name = "TestService",
             Version = "1.0.0",
             IsTelemetryEnabled = true
         };
-
         var mockOptions = Substitute.For<IOptions<AzureMcpServerConfiguration>>();
         mockOptions.Value.Returns(configuration);
 
@@ -245,6 +252,8 @@ public async Task StartActivity_ReturnsActivityWhenEnabled()
 
         var configuration = new AzureMcpServerConfiguration
         {
+            Prefix = "temp-prefix-a",
+            DisplayName = "Telemetry service display name A",
             Name = "TestService",
             Version = "1.0.0",
             IsTelemetryEnabled = true
@@ -277,6 +286,8 @@ public async Task InitializeAsync_InvokedOnce()
         // Arrange
         var configuration = new AzureMcpServerConfiguration
         {
+            Prefix = "temp-prefix-a",
+            DisplayName = "Telemetry service display name A",
             Name = "TestService",
             Version = "1.0.0",
             IsTelemetryEnabled = true
diff --git a/eng/scripts/Analyze-Code.ps1 b/eng/scripts/Analyze-Code.ps1
index b729c5faab..d3f0dea3e3 100644
--- a/eng/scripts/Analyze-Code.ps1
+++ b/eng/scripts/Analyze-Code.ps1
@@ -7,7 +7,10 @@ Push-Location $RepoRoot
 try {
     Write-Host "Running dotnet format to check for formatting issues..."
     $solutionFile = Get-ChildItem -Path . -Filter *.sln | Select-Object -First 1
-    dotnet format $solutionFile --verify-no-changes
+
+    # Excluding diagnostics IL2026 and IL3050 due to known issues with source generator
+    # Can be removed when https://github.com/dotnet/sdk/issues/45054 is resolved
+    dotnet format $solutionFile --verify-no-changes --exclude-diagnostics IL2026 IL3050
 
     # Run dotnet format
     if ($LASTEXITCODE) {
diff --git a/servers/Azure.Mcp.Server/src/Azure.Mcp.Server.csproj b/servers/Azure.Mcp.Server/src/Azure.Mcp.Server.csproj
index 63cb4138c7..677b498652 100644
--- a/servers/Azure.Mcp.Server/src/Azure.Mcp.Server.csproj
+++ b/servers/Azure.Mcp.Server/src/Azure.Mcp.Server.csproj
@@ -58,6 +58,24 @@
     <ProjectReference Include="$(RepoRoot)\tools\Azure.*\src\*.csproj" />
   </ItemGroup>
 
+  <ItemGroup>
+    <Content Include="appsettings.json">
+      <CopyToOutputDirectory>PreserveNewest</CopyToOutputDirectory>
+    </Content>
+  </ItemGroup>
+
+  <ItemGroup Condition="'$(Configuration)' == 'Debug'">
+    <Content Include="appsettings.Development.json">
+      <CopyToOutputDirectory>PreserveNewest</CopyToOutputDirectory>
+    </Content>
+  </ItemGroup>
+  
+  <ItemGroup Condition="'$(Configuration)' == 'Release'">
+    <Content Include="appsettings.Release.json">
+      <CopyToOutputDirectory>PreserveNewest</CopyToOutputDirectory>
+    </Content>
+  </ItemGroup>
+
   <ItemGroup>
     <PackageReference Include="ModelContextProtocol" />
     <PackageReference Include="System.CommandLine" />
diff --git a/servers/Azure.Mcp.Server/src/Program.cs b/servers/Azure.Mcp.Server/src/Program.cs
index 7fcfe8250c..e5f89c0359 100644
--- a/servers/Azure.Mcp.Server/src/Program.cs
+++ b/servers/Azure.Mcp.Server/src/Program.cs
@@ -3,6 +3,7 @@
 
 using System.Net;
 using Azure.Mcp.Core.Areas;
+using Azure.Mcp.Core.Areas.Server.Commands;
 using Azure.Mcp.Core.Commands;
 using Azure.Mcp.Core.Services.Azure.ResourceGroup;
 using Azure.Mcp.Core.Services.Azure.Subscription;
@@ -11,7 +12,9 @@
 using Azure.Mcp.Core.Services.ProcessExecution;
 using Azure.Mcp.Core.Services.Telemetry;
 using Azure.Mcp.Core.Services.Time;
+using Microsoft.Extensions.Configuration;
 using Microsoft.Extensions.DependencyInjection;
+using Microsoft.Extensions.Hosting;
 using Microsoft.Extensions.Logging;
 
 using ServiceStartCommand = Azure.Mcp.Core.Areas.Server.Commands.ServiceStartCommand;
@@ -27,20 +30,26 @@ private static async Task<int> Main(string[] args)
             ServiceStartCommand.ConfigureServices = ConfigureServices;
             ServiceStartCommand.InitializeServicesAsync = InitializeServicesAsync;
 
-            ServiceCollection services = new();
-            ConfigureServices(services);
+            var builder = Host.CreateApplicationBuilder(args);
 
-            services.AddLogging(builder =>
+            builder.Configuration.AddJsonFile("appsettings.Release.json", optional: true);
+
+            builder.Services.AddLogging(builder =>
             {
-                builder.ConfigureOpenTelemetryLogger();
                 builder.AddConsole();
                 builder.SetMinimumLevel(LogLevel.Information);
             });
 
-            var serviceProvider = services.BuildServiceProvider();
-            await InitializeServicesAsync(serviceProvider);
+            ConfigureServices(builder);
+
+            using var host = builder.Build();
+
+            await InitializeServicesAsync(host.Services);
 
-            var commandFactory = serviceProvider.GetRequiredService<CommandFactory>();
+            // Starts any IHostedServices
+            await host.StartAsync();
+
+            var commandFactory = host.Services.GetRequiredService<CommandFactory>();
             var rootCommand = commandFactory.RootCommand;
             var parseResult = rootCommand.Parse(args);
             var status = await parseResult.InvokeAsync();
@@ -58,9 +67,9 @@ private static async Task<int> Main(string[] args)
             return 1;
         }
     }
+
     private static IAreaSetup[] RegisterAreas()
     {
-
         return [
             // Register core areas
             new Azure.Mcp.Tools.AzureAIBestPractices.AzureAIBestPracticesSetup(),
@@ -177,9 +186,11 @@ private static void WriteResponse(CommandResponse response)
     /// </list>
     /// </summary>
     /// <param name="services">A service collection.</param>
-    internal static void ConfigureServices(IServiceCollection services)
+    internal static void ConfigureServices(IHostApplicationBuilder builder)
     {
-        services.ConfigureOpenTelemetry();
+        var services = builder.Services;
+        services.ConfigureTelemetryServices(builder.Environment, builder.Configuration);
+        services.ConfigureMcpServerOptions();
 
         services.AddMemoryCache();
         services.AddSingleton<IExternalProcessService, ExternalProcessService>();
diff --git a/servers/Azure.Mcp.Server/src/Properties/launchSettings.json b/servers/Azure.Mcp.Server/src/Properties/launchSettings.json
index 6702182ee8..038a12f744 100644
--- a/servers/Azure.Mcp.Server/src/Properties/launchSettings.json
+++ b/servers/Azure.Mcp.Server/src/Properties/launchSettings.json
@@ -1,17 +1,25 @@
 {
-    "$schema": "https://json.schemastore.org/launchsettings.json",
-    "profiles": {
-        "debug-remotemcp": {
-            "commandName": "Project",
-            "commandLineArgs": "server start --transport http --outgoing-auth-strategy UseHostingEnvironmentIdentity",
-            "dotnetRunMessages": true,
-            "environmentVariables": {
-                "ASPNETCORE_ENVIRONMENT": "Development",
-                "ASPNETCORE_URLS": "http://localhost:1031",
-                "AzureAd__TenantId": "70a036f6-8e4d-4615-bad6-149c02e7720d",
-                "AzureAd__ClientId": "ca1e0302-d50a-47d7-b5e6-7aff49884bce",
-                "AzureAd__Instance": "https://login.microsoftonline.com/"
-            }
-        }
+  "profiles": {
+    "debug-remotemcp": {
+      "commandName": "Project",
+      "commandLineArgs": "server start --transport http --outgoing-auth-strategy UseHostingEnvironmentIdentity",
+      "environmentVariables": {
+        "ASPNETCORE_ENVIRONMENT": "Development",
+        "ASPNETCORE_URLS": "http://localhost:1031",
+        "AzureAd__TenantId": "70a036f6-8e4d-4615-bad6-149c02e7720d",
+        "AzureAd__ClientId": "ca1e0302-d50a-47d7-b5e6-7aff49884bce",
+        "AzureAd__Instance": "https://login.microsoftonline.com/"
+      },
+      "dotnetRunMessages": true
+    },
+    "local-stdio": {
+      "commandName": "Project",
+      "commandLineArgs": "server start",
+      "environmentVariables": {
+        "DOTNET_ENVIRONMENT": "Development"
+      },
+      "dotnetRunMessages": true
     }
-}
+  },
+  "$schema": "https://json.schemastore.org/launchsettings.json"
+}
\ No newline at end of file
diff --git a/servers/Azure.Mcp.Server/src/appsettings.Development.json b/servers/Azure.Mcp.Server/src/appsettings.Development.json
new file mode 100644
index 0000000000..aca8f26f24
--- /dev/null
+++ b/servers/Azure.Mcp.Server/src/appsettings.Development.json
@@ -0,0 +1,22 @@
+{
+    "AZURE_MCP_COLLECT_TELEMETRY": "false",
+    "Logging": {
+        "LogLevel": {
+            "Default": "Debug",
+            "Microsoft.Hosting.Lifetime": "Information"
+        },
+        "Console": {
+            "LogToStandardErrorThreshold": "Debug",
+            "FormatterName": "simple",
+            "FormatterOptions": {
+                "ColorBehavior": "Disabled",
+                "SingleLine": true,
+                "TimestampFormat": "[HH:mm:ss] ",
+                "UseUtcTimestamp": true
+            },
+            "LogLevel": {
+                "Azure.Mcp.Core.Commands.CommandFactory": "Information"
+            }
+        }
+    }
+}
diff --git a/servers/Azure.Mcp.Server/src/appsettings.Release.json b/servers/Azure.Mcp.Server/src/appsettings.Release.json
new file mode 100644
index 0000000000..5b63320791
--- /dev/null
+++ b/servers/Azure.Mcp.Server/src/appsettings.Release.json
@@ -0,0 +1,3 @@
+{
+    "APPLICATIONINSIGHTS_CONNECTION_STRING": "InstrumentationKey=21e003c0-efee-4d3f-8a98-1868515aa2c9;IngestionEndpoint=https://centralus-2.in.applicationinsights.azure.com/;LiveEndpoint=https://centralus.livediagnostics.monitor.azure.com/;ApplicationId=f14f6a2d-6405-4f88-bd58-056f25fe274f"
+}
diff --git a/servers/Azure.Mcp.Server/src/appsettings.json b/servers/Azure.Mcp.Server/src/appsettings.json
new file mode 100644
index 0000000000..418cc40bb5
--- /dev/null
+++ b/servers/Azure.Mcp.Server/src/appsettings.json
@@ -0,0 +1,10 @@
+{
+    "Prefix": "azmcp",
+    "Name": "Azure.Mcp.Server",
+    "DisplayName": "Azure MCP Server",
+    "Logging": {
+        "LogLevel": {
+            "Default": "Warning"
+        }
+    }
+}
diff --git a/servers/Fabric.Mcp.Server/src/Program.cs b/servers/Fabric.Mcp.Server/src/Program.cs
index 208cdaa89d..67559604cd 100644
--- a/servers/Fabric.Mcp.Server/src/Program.cs
+++ b/servers/Fabric.Mcp.Server/src/Program.cs
@@ -15,7 +15,9 @@
 using Azure.Mcp.Core.Services.ProcessExecution;
 using Azure.Mcp.Core.Services.Telemetry;
 using Azure.Mcp.Core.Services.Time;
+using Microsoft.Extensions.Configuration;
 using Microsoft.Extensions.DependencyInjection;
+using Microsoft.Extensions.Hosting;
 using Microsoft.Extensions.Logging;
 
 using ServiceStartCommand = Azure.Mcp.Core.Areas.Server.Commands.ServiceStartCommand;
@@ -31,17 +33,16 @@ private static async Task<int> Main(string[] args)
             ServiceStartCommand.ConfigureServices = ConfigureServices;
             ServiceStartCommand.InitializeServicesAsync = InitializeServicesAsync;
 
-            ServiceCollection services = new();
-            ConfigureServices(services);
+            var builder = Host.CreateApplicationBuilder();
+            ConfigureServices(builder);
 
-            services.AddLogging(builder =>
+            builder.Services.AddLogging(builder =>
             {
-                builder.ConfigureOpenTelemetryLogger();
                 builder.AddConsole();
                 builder.SetMinimumLevel(LogLevel.Information);
             });
 
-            var serviceProvider = services.BuildServiceProvider();
+            var serviceProvider = builder.Services.BuildServiceProvider();
             await InitializeServicesAsync(serviceProvider);
 
             var commandFactory = serviceProvider.GetRequiredService<CommandFactory>();
@@ -132,9 +133,11 @@ private static void WriteResponse(CommandResponse response)
     /// </list>
     /// </summary>
     /// <param name="services">A service collection.</param>
-    internal static void ConfigureServices(IServiceCollection services)
+    internal static void ConfigureServices(IHostApplicationBuilder builder)
     {
-        services.ConfigureOpenTelemetry();
+        var services = builder.Services;
+
+        services.ConfigureTelemetryServices(builder.Environment, builder.Configuration);
 
         services.AddMemoryCache();
         services.AddSingleton<IExternalProcessService, ExternalProcessService>();
diff --git a/servers/Template.Mcp.Server/src/Program.cs b/servers/Template.Mcp.Server/src/Program.cs
index b58d4adcf0..b456e7c1e7 100644
--- a/servers/Template.Mcp.Server/src/Program.cs
+++ b/servers/Template.Mcp.Server/src/Program.cs
@@ -12,7 +12,9 @@
 using Azure.Mcp.Core.Services.ProcessExecution;
 using Azure.Mcp.Core.Services.Telemetry;
 using Azure.Mcp.Core.Services.Time;
+using Microsoft.Extensions.Configuration;
 using Microsoft.Extensions.DependencyInjection;
+using Microsoft.Extensions.Hosting;
 using Microsoft.Extensions.Logging;
 
 using ServiceStartCommand = Azure.Mcp.Core.Areas.Server.Commands.ServiceStartCommand;
@@ -28,17 +30,16 @@ private static async Task<int> Main(string[] args)
             ServiceStartCommand.ConfigureServices = ConfigureServices;
             ServiceStartCommand.InitializeServicesAsync = InitializeServicesAsync;
 
-            ServiceCollection services = new();
-            ConfigureServices(services);
+            var builder = Host.CreateApplicationBuilder();
+            ConfigureServices(builder);
 
-            services.AddLogging(builder =>
+            builder.Services.AddLogging(builder =>
             {
-                builder.ConfigureOpenTelemetryLogger();
                 builder.AddConsole();
                 builder.SetMinimumLevel(LogLevel.Information);
             });
 
-            var serviceProvider = services.BuildServiceProvider();
+            var serviceProvider = builder.Services.BuildServiceProvider();
             await InitializeServicesAsync(serviceProvider);
 
             var commandFactory = serviceProvider.GetRequiredService<CommandFactory>();
@@ -126,9 +127,10 @@ private static void WriteResponse(CommandResponse response)
     /// </list>
     /// </summary>
     /// <param name="services">A service collection.</param>
-    internal static void ConfigureServices(IServiceCollection services)
+    internal static void ConfigureServices(IHostApplicationBuilder builder)
     {
-        services.ConfigureOpenTelemetry();
+        var services = builder.Services;
+        services.ConfigureTelemetryServices(builder.Environment, builder.Configuration);
 
         services.AddMemoryCache();
         services.AddSingleton<IExternalProcessService, ExternalProcessService>();
diff --git a/servers/Template.Mcp.Server/src/Template.Mcp.Server.csproj b/servers/Template.Mcp.Server/src/Template.Mcp.Server.csproj
index ee9c3a2d31..2f13aa2599 100644
--- a/servers/Template.Mcp.Server/src/Template.Mcp.Server.csproj
+++ b/servers/Template.Mcp.Server/src/Template.Mcp.Server.csproj
@@ -65,6 +65,15 @@
     <ProjectReference Include="$(RepoRoot)\areas\*\src\**\Template.*.csproj" />
   </ItemGroup>
 
+  <ItemGroup>
+    <Content Include="appsettings.Development.json">
+      <CopyToOutputDirectory>PreserveNewest</CopyToOutputDirectory>
+    </Content>
+    <Content Include="appsettings.json">
+      <CopyToOutputDirectory>PreserveNewest</CopyToOutputDirectory>
+    </Content>
+  </ItemGroup>
+
   <ItemGroup>
     <PackageReference Include="ModelContextProtocol" />
     <PackageReference Include="System.CommandLine" />
diff --git a/servers/Template.Mcp.Server/src/appsettings.Development.json b/servers/Template.Mcp.Server/src/appsettings.Development.json
new file mode 100644
index 0000000000..c001896125
--- /dev/null
+++ b/servers/Template.Mcp.Server/src/appsettings.Development.json
@@ -0,0 +1,18 @@
+{
+    "Logging": {
+        "LogLevel": {
+            "Default": "Debug",
+            "Microsoft.Hosting.Lifetime": "Information"
+        },
+        "Console": {
+            "LogToStandardErrorThreshold": "Debug",
+            "FormatterName": "simple",
+            "FormatterOptions": {
+                "ColorBehavior": "Disabled",
+                "SingleLine": true,
+                "TimestampFormat": "[HH:mm:ss] ",
+                "UseUtcTimestamp": true
+            }
+        }
+    }
+}
diff --git a/servers/Template.Mcp.Server/src/appsettings.json b/servers/Template.Mcp.Server/src/appsettings.json
new file mode 100644
index 0000000000..ebe8df30bf
--- /dev/null
+++ b/servers/Template.Mcp.Server/src/appsettings.json
@@ -0,0 +1,10 @@
+{
+    "Prefix": "template-mcp",
+    "Name": "Template.Mcp.Server",
+    "DisplayName": "Template MCP Server",
+    "Logging": {
+        "LogLevel": {
+            "Default": "Warning"
+        }
+    }
+}