Key takeaways

  • Model Context Protocol (MCP) is an industry standard that allows AI agents to access and act on live enterprise data, and it vastly reduces the number of integrations needed to do so.
  •  Oracle has implemented the MCP standard as a managed connectivity service—called the Oracle MCP Server—that is part of Oracle Cloud Infrastructure.
  • Oracle MCP Server service works with Fusion Apps to provide a secure, well-managed foundation for intelligent automation across ERP, HCM, SCM, and beyond.

There are no shortage of AI-related buzzwords. And while many of them are quite technical and can be safely ignored by people outside of technology roles, that isn’t the case for Model Context Protocol (MCP). In a very short period, MCP has become one of the critical components that make it possible for AI agents to deliver real value for enterprises. So, it’s worth understanding what MCP is and does, how it’s being incorporated into Oracle products, and why any of that matters to Fusion Applications customers. This post will also help you understand the differences between MCP (the standard) and Oracle MCP Server (the product).

What is MCP?

MCP is an is an open standard released by Anthropic in November 2024. Among other things, it allows for AI agents to interact with external data sources and tools, including enterprise applications. It is significant because it provides a consistent way for any AI agent to access enterprise data without custom integrations. MCP is like a universal USB hub for AI—once an app, data source, or agent plugs in, it can connect and work with anything else that’s plugged in, without needing a bunch of custom adapters.

In practice, MCP makes it significantly easier for agents to read from and write to your business applications (i.e., two-way, read-write interactions). This allows agents to produce better responses and automate workflows more effectively. However, it also means that security and other governing mechanisms must be in place.  

How it works

The MCP standard specifies a framework that uses a client-server architecture designed for both flexibility and security. MCP servers host connections to enterprise systems, APIs, and data sources, with each treated as a trusted, permissioned endpoint. MCP clients—AI agents or agent orchestration platforms—request, consume, and submit data through standardized, schema-based interactions.

All communication occurs over secure channels with explicit authentication, authorization, and least-privilege access controls, helping to ensure that agents can only retrieve or act on the data they’re permitted to use. This helps protect sensitive enterprise information and allows administrators to monitor, audit, and revoke access at any time. Maintaining this kind of governance is increasingly important as AI becomes more deeply integrated into business workflows.

What is Oracle MCP Server?

Oracle’s MCP Server is an OCI offering that implements the MCP standard with a fully managed service for hosting MCP-based connections. Unlike open-source or ad hoc MCP deployments, Oracle MCP Server adds policy-based governance, unified identity management, and native integration with observability and security. This adds a layer of oversight that provides a more secure implementation of the MCP standard, building your confidence to let AI agents interact with live business data. Oracle MCP Server helps secure transactions without compromising compliance or performance.

Oracle MCP Server and Oracle Database

One of Oracle MCP Server’s core functions is allowing AI agents to securely connect to, analyze, and make transactions in Oracle Databases. It lets agents execute queries directly, explore schemas, view performance plans, and analyze results, all while honoring existing permissions, generating audit logs, and following enterprise identity controls. Though Oracle MCP Server is optimized for Oracle databases, MCP’s open protocol enables integration with non‑Oracle apps or other databases. Through Oracle MCP Server, AI agents can access advanced functions like natural‑language SQL translation, vector search, graph and JSON data, and automatic query optimization.

Oracle MCP Server and Fusion Applications

Oracle’s MCP Server acts as secure translator that helps AI agents interact with Oracle Fusion Cloud Applications—ERP, HCM, SCM, and CX—without requiring coding or database access. In short, MCP Server makes it possible for AI to work with Fusion data safely and conversationally without adding any risk or complexity.​ Examples include:

  • Continuous account reconciliation: the Ledger Agent in Oracle Fusion Cloud ERP can monitor ledgers for mismatched journal entries, automatically investigate anomalies, and propose or even post correcting entries using MCP to securely access accounting data and workflow APIs.
  • Employee record updates: the Workforce Records Agent in Oracle Fusion Cloud HCM could update job titles or compensation fields when a change event occurs, pulling verified data from approved systems through MCP.
  • Supplier collaboration: the Supply Chain Collaboration Advisor agent in Oracle Fusion Cloud SCM could read supplier responses to RFQs and automatically update purchase orders or request clarifications. MCP enables these two-way, transactional updates safely.

In sum

Oracle MCP Server (using the MCP standard) may work quietly behind the scenes, but it’s a key enabler of Oracle’s AI vision for Fusion Applications. By standardizing how agents connect to enterprise data securely and at scale, it allows organizations to trust AI to handle more complex, business-critical tasks. As Oracle continues expanding its portfolio of AI agents, Oracle MCP Server ensures that each one operates with the same governance, consistency, and confidence that customers expect from Fusion Applications.

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