What Is the Model Context Protocol (MCP)?

An abstract depiction of Model-Context Protocol

The Model Context Protocol (MCP) is an open-source standard created by Anthropic that enables AI applications to connect to external systems, tools, and data sources through a universal protocol. Think of MCP as USB-C for AI, it provides one standardized way for AI agents to interact with enterprise systems, replacing fragmented custom integrations with a single, interoperable protocol.

MCP was announced by Anthropic in November 2024 and is quickly becoming the foundational infrastructure for enterprise AI deployment. It uses JSON-RPC 2.0 for communication and follows a client-server architecture that separates AI intelligence from system capabilities.

Why Does the Model Context Protocol Matter?

Traditional AI systems face three critical limitations that prevent enterprise adoption:

AI Is Trapped in the Chat Box

Most AI applications can only answer questions. They can't take actions, access live data, or integrate with business systems. Without MCP, AI remains isolated from the workflows and tools enterprises depend on.

Every Integration Requires Custom Development

Connecting AI to enterprise systems traditionally requires:

  • Custom API implementations for each tool-to-system connection

  • Brittle, hard-coded scripts that break with updates

  • Complex credential management and security reviews

  • Months of development time per integration

This fragmented approach creates N×M complexity, where every AI tool needs custom code for every system it connects to.

Access Without Governance Creates Risk

Traditional integrations often grant broad system access with limited fine-grained controls. Enterprises can't safely give AI access to sensitive systems without robust permissions, audit trails, and policy enforcement.

MCP solves these problems by standardizing how AI connects to systems, reducing complexity from N×M fragmented integrations to N+M protocol-based connections.

How Does the Model Context Protocol Work?

MCP uses a client-server architecture with three core components:

1. MCP Client (The AI Side)

The MCP client is the AI application or agent that requests access to tools and capabilities:

  • Claude Desktop

  • Claude.ai

  • Custom enterprise AI agents

  • Workflow automation systems

The client discovers available tools, invokes them based on user intent, and handles responses.

2. MCP Server (The System Side)

An MCP server exposes system capabilities as structured tools that AI can invoke. Each server represents a specific data source or application:

Examples:

  • Gmail MCP Server: listEmails, sendEmail, searchInbox

  • Jira MCP Server: listIssues, updateTicket, createIssue

  • Snowflake MCP Server: executeQuery, listTables

  • GitHub MCP Server: searchCode, createPullRequest, listIssues

Servers define what actions exist, but the AI decides when and how to call them based on context.

3. Tools (The Actions)

Tools are typed, structured functions with defined parameters and return values:

  • Input validation ensures safe execution

  • JSON responses provide structured data

  • Parameters specify required and optional fields

  • Documentation describes tool purpose and behavior

This structure enables AI to take safe, trackable, and auditable actions across enterprise systems.

What Are the Key Technical Features of MCP?

JSON-RPC 2.0 Communication Protocol

All MCP communication uses the JSON-RPC 2.0 standard for request-response messaging. This provides:

  • Standardized message formatting

  • Request correlation through unique IDs

  • Error handling and status codes

  • Bi-directional communication

Stateful Connections with Lifecycle Management

MCP maintains persistent connections between clients and servers with:

  • Initialization: Clients and servers exchange capabilities during connection setup

  • Capability Negotiation: Both sides declare supported features (tools, resources, prompts)

  • Real-Time Notifications: Servers can push updates when available tools or resources change

  • Graceful Shutdown: Proper connection termination and cleanup

Three Core Primitives

1. Tools - Executable functions the AI can invoke (e.g., send email, query database)

2. Resources - Data sources that provide contextual information (e.g., file contents, API responses)

3. Prompts - Reusable templates that structure AI interactions (e.g., system prompts, few-shot examples)

Multiple Transport Layers

  • Stdio Transport: Uses standard input/output for local processes (optimal performance, no network overhead)

  • HTTP Transport: Uses HTTP POST for remote connections with optional Server-Sent Events

What Can Enterprises Do with MCP?

Customer Support Automation

  • Pull tickets from support systems

  • Analyze sentiment and priority

  • Draft contextual responses

  • Update CRM records automatically

Operations and DevOps

  • Query logs and metrics

  • Trigger deployment workflows

  • Summarize system anomalies

  • Generate incident reports

Sales Enablement

  • Gather account intelligence from multiple systems

  • Draft quarterly business reviews

  • Update Salesforce with meeting notes

  • Generate proposal content

Regulated Industries

  • Retrieve clinical data with audit trails

  • Generate structured safety summaries

  • Maintain compliance documentation

  • Track data access and modifications

MCP transforms AI from a research tool into an operational system capable of executing end-to-end workflows.

What Are the Limitations of MCP Alone?

While MCP provides the technical foundation for AI-to-system integration, it lacks built-in enterprise governance and security controls.

No Role-Based Access Control

MCP servers expose all tools equally to any connected client. There's no native way to restrict:

  • Which users can invoke specific tools

  • What parameters are allowed

  • When tools can be executed

  • What data can be accessed

No Identity Mapping

In raw MCP, AI actions aren't tied to specific human users. This creates:

  • Audit trail gaps (who initiated the action?)

  • Compliance risks (no user attribution)

  • Accountability issues (actions appear system-generated)

No Credential Security

Many MCP servers require API tokens or credentials. Without a security layer:

  • AI models may see sensitive credentials

  • Token leakage becomes a risk

  • Credential rotation is manual and error-prone

No Real-Time Policy Enforcement

MCP can't validate whether a requested action complies with:

  • Corporate policies

  • Regulatory requirements

  • Data classification rules

  • Approval workflows

Limited Auditability

Standard MCP implementations lack:

  • Comprehensive logging of all tool invocations

  • Detailed audit trails for compliance (SOC 2, HIPAA, GxP)

  • Real-time monitoring and alerting

  • Historical analysis capabilities

This is why enterprises deploy MCP with an MCP Gateway that adds the governance, security, and compliance layer MCP lacks.

How Do MCP and MCP Gateways Work Together?

MCP provides the capability. An MCP Gateway ensures that capability is used safely.

An MCP Gateway sits between AI clients and MCP servers to provide:

✔ Tool-Level Authorization

Define exactly which users can access which tools under what conditions.

✔ Credential Proxying

Securely manage and inject credentials without exposing them to AI models.

✔ Real-Time Validation

Inspect tool calls for policy compliance before execution.

✔ Identity Mapping

Attribute every AI action to a specific human user with their permissions.

✔ Full Audit Logging

Maintain comprehensive records of all tool invocations for compliance and troubleshooting.

✔ Server Trust Evaluation

Validate that MCP servers behave correctly and haven't been compromised.

MCP alone is powerful but risky. MCP + Gateway = enterprise-ready, governed AI automation.

How Does MCP Compare to Traditional APIs?

Traditional API Integration

Architecture:

  • Custom implementation for each AI tool ↔ system connection

  • N tools × M systems = N×M custom integrations

  • Fragmented, non-standardized approach

Challenges:

  • Months of development per integration

  • Brittle code that breaks with API changes

  • No standardized error handling

  • Limited reusability across AI applications

Protocol-Based Integration with MCP

Architecture:

  • One MCP server per system works with all MCP-compatible AI tools

  • N tools + M systems = N+M implementations

  • Standardized, composable approach

Benefits:

  • Significantly reduced integration complexity

  • Standardized communication protocol (JSON-RPC 2.0)

  • Reusable MCP servers across multiple AI applications

  • Built-in capability discovery and negotiation

MCP replaces fragmented point-to-point integrations with a universal protocol that any AI application can speak.

Who Has Adopted the Model Context Protocol?

Anthropic (Creator)

  • Claude Desktop

  • Claude.ai with MCP connectors

  • Claude Code

  • Messages API (MCP support)

Development Tools

  • Zed: IDE with native MCP integration

  • Replit: Online IDE supporting MCP

  • Codeium: AI coding assistant with MCP

  • Sourcegraph: Code search platform with MCP

Enterprise Early Adopters

  • Block: Integrated MCP into internal systems

  • Apollo: Deployed MCP for AI workflows

Growing Ecosystem

A growing ecosystem of open-source MCP servers provides integrations for popular enterprise systems:

  • Google Drive, Slack, GitHub

  • PostgreSQL, MongoDB

  • Salesforce, ServiceNow

  • Stripe, Okta, Datadog

How Is Natoma Advancing Enterprise MCP Adoption?

Natoma provides the industry's most advanced governance platform for MCP-based AI systems, addressing the critical gap between MCP's technical capabilities and enterprise security requirements.

The Natoma MCP Gateway

✔ Granular Access Control: Define tool-level permissions based on user roles, departments, and security profiles

✔ Identity-Aware Actions: Every AI action is attributed to a specific human user with their permissions

✔ Secure Credential Management: Proxy credentials to MCP servers without exposing them to AI models

✔ Real-Time Oversight: Validate tool calls against corporate policies before execution

✔ Comprehensive Audit Trails: Maintain detailed logs for compliance (SOC 2, HIPAA, GxP)

✔ Server Trust Scoring: Evaluate MCP server behavior and detect anomalies

Curated MCP Server Registry

Natoma maintains a registry of verified, production-ready MCP servers for enterprise systems including MongoDB Atlas, GitHub, Slack, ServiceNow, Stripe, Okta, and more.

MCP enables enterprise AI. Natoma makes it safe and governed.

Frequently Asked Questions

What is the difference between MCP and traditional APIs?

MCP is a standardized protocol for AI-to-system communication, while traditional APIs are custom implementations for specific integrations. MCP uses JSON-RPC 2.0 to provide a universal way for AI applications to discover and invoke tools across different systems. This replaces fragmented point-to-point integrations (N×M complexity) with a protocol-based approach (N+M complexity) where one MCP server per system works with all MCP-compatible AI tools.

What are the limitations of the Model Context Protocol?

MCP lacks built-in enterprise governance and security controls. It has no native role-based access control, no identity mapping for audit trails, no secure credential management, and no real-time policy enforcement. MCP also doesn't provide comprehensive logging for compliance requirements like SOC 2 or HIPAA. These limitations are why enterprises deploy MCP with an MCP Gateway that adds the necessary security, governance, and compliance layers.

Who created the Model Context Protocol?

The Model Context Protocol was created by Anthropic and announced on November 25, 2024. Anthropic developed MCP as an open-source standard to enable AI applications to connect to external systems in a standardized way. The official analogy from Anthropic is that "MCP is like USB-C for AI applications"—providing one universal connection standard instead of fragmented custom integrations.

What companies have adopted MCP?

Anthropic (the creator) supports MCP across Claude Desktop, Claude.ai, and Claude Code. Development tools including Zed, Replit, Codeium, and Sourcegraph have integrated MCP. Enterprise early adopters include Block and Apollo. The MCP ecosystem is growing rapidly with open-source servers for popular enterprise systems like Google Drive, Slack, GitHub, PostgreSQL, and Salesforce.

How does MCP enable enterprise AI agents?

MCP enables enterprise AI agents by providing a standardized way to connect to business systems and perform actions. Instead of just answering questions, AI agents using MCP can query databases, send emails, update tickets, trigger workflows, and access live data across enterprise systems. The protocol's tool-based architecture allows agents to discover available capabilities, invoke them based on user intent, and receive structured responses—transforming AI from a passive assistant into an operational system.

What are MCP tools, resources, and prompts?

MCP defines three core primitives: Tools are executable functions that AI can invoke (like sending an email or querying a database). Resources are data sources that provide contextual information (like file contents or API responses). Prompts are reusable templates that structure AI interactions (like system prompts or few-shot examples). These primitives give AI applications standardized ways to take actions, access data, and maintain consistent behavior across different systems.

Is MCP secure for enterprise use?

MCP provides the technical foundation for AI-to-system integration but lacks built-in enterprise security controls. Raw MCP has no role-based access control, credential security, identity mapping, or comprehensive audit logging. Enterprises should deploy MCP with an MCP Gateway that adds policy enforcement, secure credential management, user identity attribution, and compliance-grade audit trails. This combination makes MCP safe for production enterprise use.

How does MCP reduce AI integration complexity?

MCP reduces integration complexity by replacing custom API implementations with a standardized protocol. Traditional approaches require N×M integrations where every AI tool needs custom code for every system. MCP uses an N+M approach where one MCP server per system works with all MCP-compatible AI applications. This significantly reduces development time, improves maintainability, and enables reusability across multiple AI tools and use cases.

Key Takeaways

  • MCP is the universal standard for connecting AI applications to enterprise systems, announced by Anthropic in November 2024

  • Protocol-based architecture replaces fragmented custom integrations with standardized JSON-RPC 2.0 communication

  • Three core primitives—tools, resources, and prompts—enable AI to take actions, access data, and maintain consistency

  • Enterprise adoption requires governance: MCP needs an MCP Gateway for security, permissions, and compliance

  • Growing ecosystem includes integrations with development tools (Zed, Replit, Codeium, Sourcegraph) and enterprise systems

Ready to Deploy MCP Safely in Your Enterprise?

Natoma provides the governance platform that makes MCP safe for production use. Our MCP Gateway adds tool-level permissions, identity-aware actions, secure credential management, and comprehensive audit trails.

Learn more at Natoma.ai

Related Resources:

About Natoma

Natoma enables enterprises to adopt AI agents securely. The secure agent access gateway empowers organizations to unlock the full power of AI, by connecting agents to their tools and data without compromising security.

Leveraging a hosted MCP platform, Natoma provides enterprise-grade authentication, fine-grained authorization, and governance for AI agents with flexible deployment models and out-of-the-box support for 100+ pre-built MCP servers.

The Model Context Protocol (MCP) is an open-source standard created by Anthropic that enables AI applications to connect to external systems, tools, and data sources through a universal protocol. Think of MCP as USB-C for AI, it provides one standardized way for AI agents to interact with enterprise systems, replacing fragmented custom integrations with a single, interoperable protocol.

MCP was announced by Anthropic in November 2024 and is quickly becoming the foundational infrastructure for enterprise AI deployment. It uses JSON-RPC 2.0 for communication and follows a client-server architecture that separates AI intelligence from system capabilities.

Why Does the Model Context Protocol Matter?

Traditional AI systems face three critical limitations that prevent enterprise adoption:

AI Is Trapped in the Chat Box

Most AI applications can only answer questions. They can't take actions, access live data, or integrate with business systems. Without MCP, AI remains isolated from the workflows and tools enterprises depend on.

Every Integration Requires Custom Development

Connecting AI to enterprise systems traditionally requires:

  • Custom API implementations for each tool-to-system connection

  • Brittle, hard-coded scripts that break with updates

  • Complex credential management and security reviews

  • Months of development time per integration

This fragmented approach creates N×M complexity, where every AI tool needs custom code for every system it connects to.

Access Without Governance Creates Risk

Traditional integrations often grant broad system access with limited fine-grained controls. Enterprises can't safely give AI access to sensitive systems without robust permissions, audit trails, and policy enforcement.

MCP solves these problems by standardizing how AI connects to systems, reducing complexity from N×M fragmented integrations to N+M protocol-based connections.

How Does the Model Context Protocol Work?

MCP uses a client-server architecture with three core components:

1. MCP Client (The AI Side)

The MCP client is the AI application or agent that requests access to tools and capabilities:

  • Claude Desktop

  • Claude.ai

  • Custom enterprise AI agents

  • Workflow automation systems

The client discovers available tools, invokes them based on user intent, and handles responses.

2. MCP Server (The System Side)

An MCP server exposes system capabilities as structured tools that AI can invoke. Each server represents a specific data source or application:

Examples:

  • Gmail MCP Server: listEmails, sendEmail, searchInbox

  • Jira MCP Server: listIssues, updateTicket, createIssue

  • Snowflake MCP Server: executeQuery, listTables

  • GitHub MCP Server: searchCode, createPullRequest, listIssues

Servers define what actions exist, but the AI decides when and how to call them based on context.

3. Tools (The Actions)

Tools are typed, structured functions with defined parameters and return values:

  • Input validation ensures safe execution

  • JSON responses provide structured data

  • Parameters specify required and optional fields

  • Documentation describes tool purpose and behavior

This structure enables AI to take safe, trackable, and auditable actions across enterprise systems.

What Are the Key Technical Features of MCP?

JSON-RPC 2.0 Communication Protocol

All MCP communication uses the JSON-RPC 2.0 standard for request-response messaging. This provides:

  • Standardized message formatting

  • Request correlation through unique IDs

  • Error handling and status codes

  • Bi-directional communication

Stateful Connections with Lifecycle Management

MCP maintains persistent connections between clients and servers with:

  • Initialization: Clients and servers exchange capabilities during connection setup

  • Capability Negotiation: Both sides declare supported features (tools, resources, prompts)

  • Real-Time Notifications: Servers can push updates when available tools or resources change

  • Graceful Shutdown: Proper connection termination and cleanup

Three Core Primitives

1. Tools - Executable functions the AI can invoke (e.g., send email, query database)

2. Resources - Data sources that provide contextual information (e.g., file contents, API responses)

3. Prompts - Reusable templates that structure AI interactions (e.g., system prompts, few-shot examples)

Multiple Transport Layers

  • Stdio Transport: Uses standard input/output for local processes (optimal performance, no network overhead)

  • HTTP Transport: Uses HTTP POST for remote connections with optional Server-Sent Events

What Can Enterprises Do with MCP?

Customer Support Automation

  • Pull tickets from support systems

  • Analyze sentiment and priority

  • Draft contextual responses

  • Update CRM records automatically

Operations and DevOps

  • Query logs and metrics

  • Trigger deployment workflows

  • Summarize system anomalies

  • Generate incident reports

Sales Enablement

  • Gather account intelligence from multiple systems

  • Draft quarterly business reviews

  • Update Salesforce with meeting notes

  • Generate proposal content

Regulated Industries

  • Retrieve clinical data with audit trails

  • Generate structured safety summaries

  • Maintain compliance documentation

  • Track data access and modifications

MCP transforms AI from a research tool into an operational system capable of executing end-to-end workflows.

What Are the Limitations of MCP Alone?

While MCP provides the technical foundation for AI-to-system integration, it lacks built-in enterprise governance and security controls.

No Role-Based Access Control

MCP servers expose all tools equally to any connected client. There's no native way to restrict:

  • Which users can invoke specific tools

  • What parameters are allowed

  • When tools can be executed

  • What data can be accessed

No Identity Mapping

In raw MCP, AI actions aren't tied to specific human users. This creates:

  • Audit trail gaps (who initiated the action?)

  • Compliance risks (no user attribution)

  • Accountability issues (actions appear system-generated)

No Credential Security

Many MCP servers require API tokens or credentials. Without a security layer:

  • AI models may see sensitive credentials

  • Token leakage becomes a risk

  • Credential rotation is manual and error-prone

No Real-Time Policy Enforcement

MCP can't validate whether a requested action complies with:

  • Corporate policies

  • Regulatory requirements

  • Data classification rules

  • Approval workflows

Limited Auditability

Standard MCP implementations lack:

  • Comprehensive logging of all tool invocations

  • Detailed audit trails for compliance (SOC 2, HIPAA, GxP)

  • Real-time monitoring and alerting

  • Historical analysis capabilities

This is why enterprises deploy MCP with an MCP Gateway that adds the governance, security, and compliance layer MCP lacks.

How Do MCP and MCP Gateways Work Together?

MCP provides the capability. An MCP Gateway ensures that capability is used safely.

An MCP Gateway sits between AI clients and MCP servers to provide:

✔ Tool-Level Authorization

Define exactly which users can access which tools under what conditions.

✔ Credential Proxying

Securely manage and inject credentials without exposing them to AI models.

✔ Real-Time Validation

Inspect tool calls for policy compliance before execution.

✔ Identity Mapping

Attribute every AI action to a specific human user with their permissions.

✔ Full Audit Logging

Maintain comprehensive records of all tool invocations for compliance and troubleshooting.

✔ Server Trust Evaluation

Validate that MCP servers behave correctly and haven't been compromised.

MCP alone is powerful but risky. MCP + Gateway = enterprise-ready, governed AI automation.

How Does MCP Compare to Traditional APIs?

Traditional API Integration

Architecture:

  • Custom implementation for each AI tool ↔ system connection

  • N tools × M systems = N×M custom integrations

  • Fragmented, non-standardized approach

Challenges:

  • Months of development per integration

  • Brittle code that breaks with API changes

  • No standardized error handling

  • Limited reusability across AI applications

Protocol-Based Integration with MCP

Architecture:

  • One MCP server per system works with all MCP-compatible AI tools

  • N tools + M systems = N+M implementations

  • Standardized, composable approach

Benefits:

  • Significantly reduced integration complexity

  • Standardized communication protocol (JSON-RPC 2.0)

  • Reusable MCP servers across multiple AI applications

  • Built-in capability discovery and negotiation

MCP replaces fragmented point-to-point integrations with a universal protocol that any AI application can speak.

Who Has Adopted the Model Context Protocol?

Anthropic (Creator)

  • Claude Desktop

  • Claude.ai with MCP connectors

  • Claude Code

  • Messages API (MCP support)

Development Tools

  • Zed: IDE with native MCP integration

  • Replit: Online IDE supporting MCP

  • Codeium: AI coding assistant with MCP

  • Sourcegraph: Code search platform with MCP

Enterprise Early Adopters

  • Block: Integrated MCP into internal systems

  • Apollo: Deployed MCP for AI workflows

Growing Ecosystem

A growing ecosystem of open-source MCP servers provides integrations for popular enterprise systems:

  • Google Drive, Slack, GitHub

  • PostgreSQL, MongoDB

  • Salesforce, ServiceNow

  • Stripe, Okta, Datadog

How Is Natoma Advancing Enterprise MCP Adoption?

Natoma provides the industry's most advanced governance platform for MCP-based AI systems, addressing the critical gap between MCP's technical capabilities and enterprise security requirements.

The Natoma MCP Gateway

✔ Granular Access Control: Define tool-level permissions based on user roles, departments, and security profiles

✔ Identity-Aware Actions: Every AI action is attributed to a specific human user with their permissions

✔ Secure Credential Management: Proxy credentials to MCP servers without exposing them to AI models

✔ Real-Time Oversight: Validate tool calls against corporate policies before execution

✔ Comprehensive Audit Trails: Maintain detailed logs for compliance (SOC 2, HIPAA, GxP)

✔ Server Trust Scoring: Evaluate MCP server behavior and detect anomalies

Curated MCP Server Registry

Natoma maintains a registry of verified, production-ready MCP servers for enterprise systems including MongoDB Atlas, GitHub, Slack, ServiceNow, Stripe, Okta, and more.

MCP enables enterprise AI. Natoma makes it safe and governed.

Frequently Asked Questions

What is the difference between MCP and traditional APIs?

MCP is a standardized protocol for AI-to-system communication, while traditional APIs are custom implementations for specific integrations. MCP uses JSON-RPC 2.0 to provide a universal way for AI applications to discover and invoke tools across different systems. This replaces fragmented point-to-point integrations (N×M complexity) with a protocol-based approach (N+M complexity) where one MCP server per system works with all MCP-compatible AI tools.

What are the limitations of the Model Context Protocol?

MCP lacks built-in enterprise governance and security controls. It has no native role-based access control, no identity mapping for audit trails, no secure credential management, and no real-time policy enforcement. MCP also doesn't provide comprehensive logging for compliance requirements like SOC 2 or HIPAA. These limitations are why enterprises deploy MCP with an MCP Gateway that adds the necessary security, governance, and compliance layers.

Who created the Model Context Protocol?

The Model Context Protocol was created by Anthropic and announced on November 25, 2024. Anthropic developed MCP as an open-source standard to enable AI applications to connect to external systems in a standardized way. The official analogy from Anthropic is that "MCP is like USB-C for AI applications"—providing one universal connection standard instead of fragmented custom integrations.

What companies have adopted MCP?

Anthropic (the creator) supports MCP across Claude Desktop, Claude.ai, and Claude Code. Development tools including Zed, Replit, Codeium, and Sourcegraph have integrated MCP. Enterprise early adopters include Block and Apollo. The MCP ecosystem is growing rapidly with open-source servers for popular enterprise systems like Google Drive, Slack, GitHub, PostgreSQL, and Salesforce.

How does MCP enable enterprise AI agents?

MCP enables enterprise AI agents by providing a standardized way to connect to business systems and perform actions. Instead of just answering questions, AI agents using MCP can query databases, send emails, update tickets, trigger workflows, and access live data across enterprise systems. The protocol's tool-based architecture allows agents to discover available capabilities, invoke them based on user intent, and receive structured responses—transforming AI from a passive assistant into an operational system.

What are MCP tools, resources, and prompts?

MCP defines three core primitives: Tools are executable functions that AI can invoke (like sending an email or querying a database). Resources are data sources that provide contextual information (like file contents or API responses). Prompts are reusable templates that structure AI interactions (like system prompts or few-shot examples). These primitives give AI applications standardized ways to take actions, access data, and maintain consistent behavior across different systems.

Is MCP secure for enterprise use?

MCP provides the technical foundation for AI-to-system integration but lacks built-in enterprise security controls. Raw MCP has no role-based access control, credential security, identity mapping, or comprehensive audit logging. Enterprises should deploy MCP with an MCP Gateway that adds policy enforcement, secure credential management, user identity attribution, and compliance-grade audit trails. This combination makes MCP safe for production enterprise use.

How does MCP reduce AI integration complexity?

MCP reduces integration complexity by replacing custom API implementations with a standardized protocol. Traditional approaches require N×M integrations where every AI tool needs custom code for every system. MCP uses an N+M approach where one MCP server per system works with all MCP-compatible AI applications. This significantly reduces development time, improves maintainability, and enables reusability across multiple AI tools and use cases.

Key Takeaways

  • MCP is the universal standard for connecting AI applications to enterprise systems, announced by Anthropic in November 2024

  • Protocol-based architecture replaces fragmented custom integrations with standardized JSON-RPC 2.0 communication

  • Three core primitives—tools, resources, and prompts—enable AI to take actions, access data, and maintain consistency

  • Enterprise adoption requires governance: MCP needs an MCP Gateway for security, permissions, and compliance

  • Growing ecosystem includes integrations with development tools (Zed, Replit, Codeium, Sourcegraph) and enterprise systems

Ready to Deploy MCP Safely in Your Enterprise?

Natoma provides the governance platform that makes MCP safe for production use. Our MCP Gateway adds tool-level permissions, identity-aware actions, secure credential management, and comprehensive audit trails.

Learn more at Natoma.ai

Related Resources:

About Natoma

Natoma enables enterprises to adopt AI agents securely. The secure agent access gateway empowers organizations to unlock the full power of AI, by connecting agents to their tools and data without compromising security.

Leveraging a hosted MCP platform, Natoma provides enterprise-grade authentication, fine-grained authorization, and governance for AI agents with flexible deployment models and out-of-the-box support for 100+ pre-built MCP servers.

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What Is the Model Context Protocol (MCP)?

An abstract depiction of Model-Context Protocol
An abstract depiction of Model-Context Protocol

The Model Context Protocol (MCP) is an open-source standard created by Anthropic that enables AI applications to connect to external systems, tools, and data sources through a universal protocol. Think of MCP as USB-C for AI, it provides one standardized way for AI agents to interact with enterprise systems, replacing fragmented custom integrations with a single, interoperable protocol.

MCP was announced by Anthropic in November 2024 and is quickly becoming the foundational infrastructure for enterprise AI deployment. It uses JSON-RPC 2.0 for communication and follows a client-server architecture that separates AI intelligence from system capabilities.

Why Does the Model Context Protocol Matter?

Traditional AI systems face three critical limitations that prevent enterprise adoption:

AI Is Trapped in the Chat Box

Most AI applications can only answer questions. They can't take actions, access live data, or integrate with business systems. Without MCP, AI remains isolated from the workflows and tools enterprises depend on.

Every Integration Requires Custom Development

Connecting AI to enterprise systems traditionally requires:

  • Custom API implementations for each tool-to-system connection

  • Brittle, hard-coded scripts that break with updates

  • Complex credential management and security reviews

  • Months of development time per integration

This fragmented approach creates N×M complexity, where every AI tool needs custom code for every system it connects to.

Access Without Governance Creates Risk

Traditional integrations often grant broad system access with limited fine-grained controls. Enterprises can't safely give AI access to sensitive systems without robust permissions, audit trails, and policy enforcement.

MCP solves these problems by standardizing how AI connects to systems, reducing complexity from N×M fragmented integrations to N+M protocol-based connections.

How Does the Model Context Protocol Work?

MCP uses a client-server architecture with three core components:

1. MCP Client (The AI Side)

The MCP client is the AI application or agent that requests access to tools and capabilities:

  • Claude Desktop

  • Claude.ai

  • Custom enterprise AI agents

  • Workflow automation systems

The client discovers available tools, invokes them based on user intent, and handles responses.

2. MCP Server (The System Side)

An MCP server exposes system capabilities as structured tools that AI can invoke. Each server represents a specific data source or application:

Examples:

  • Gmail MCP Server: listEmails, sendEmail, searchInbox

  • Jira MCP Server: listIssues, updateTicket, createIssue

  • Snowflake MCP Server: executeQuery, listTables

  • GitHub MCP Server: searchCode, createPullRequest, listIssues

Servers define what actions exist, but the AI decides when and how to call them based on context.

3. Tools (The Actions)

Tools are typed, structured functions with defined parameters and return values:

  • Input validation ensures safe execution

  • JSON responses provide structured data

  • Parameters specify required and optional fields

  • Documentation describes tool purpose and behavior

This structure enables AI to take safe, trackable, and auditable actions across enterprise systems.

What Are the Key Technical Features of MCP?

JSON-RPC 2.0 Communication Protocol

All MCP communication uses the JSON-RPC 2.0 standard for request-response messaging. This provides:

  • Standardized message formatting

  • Request correlation through unique IDs

  • Error handling and status codes

  • Bi-directional communication

Stateful Connections with Lifecycle Management

MCP maintains persistent connections between clients and servers with:

  • Initialization: Clients and servers exchange capabilities during connection setup

  • Capability Negotiation: Both sides declare supported features (tools, resources, prompts)

  • Real-Time Notifications: Servers can push updates when available tools or resources change

  • Graceful Shutdown: Proper connection termination and cleanup

Three Core Primitives

1. Tools - Executable functions the AI can invoke (e.g., send email, query database)

2. Resources - Data sources that provide contextual information (e.g., file contents, API responses)

3. Prompts - Reusable templates that structure AI interactions (e.g., system prompts, few-shot examples)

Multiple Transport Layers

  • Stdio Transport: Uses standard input/output for local processes (optimal performance, no network overhead)

  • HTTP Transport: Uses HTTP POST for remote connections with optional Server-Sent Events

What Can Enterprises Do with MCP?

Customer Support Automation

  • Pull tickets from support systems

  • Analyze sentiment and priority

  • Draft contextual responses

  • Update CRM records automatically

Operations and DevOps

  • Query logs and metrics

  • Trigger deployment workflows

  • Summarize system anomalies

  • Generate incident reports

Sales Enablement

  • Gather account intelligence from multiple systems

  • Draft quarterly business reviews

  • Update Salesforce with meeting notes

  • Generate proposal content

Regulated Industries

  • Retrieve clinical data with audit trails

  • Generate structured safety summaries

  • Maintain compliance documentation

  • Track data access and modifications

MCP transforms AI from a research tool into an operational system capable of executing end-to-end workflows.

What Are the Limitations of MCP Alone?

While MCP provides the technical foundation for AI-to-system integration, it lacks built-in enterprise governance and security controls.

No Role-Based Access Control

MCP servers expose all tools equally to any connected client. There's no native way to restrict:

  • Which users can invoke specific tools

  • What parameters are allowed

  • When tools can be executed

  • What data can be accessed

No Identity Mapping

In raw MCP, AI actions aren't tied to specific human users. This creates:

  • Audit trail gaps (who initiated the action?)

  • Compliance risks (no user attribution)

  • Accountability issues (actions appear system-generated)

No Credential Security

Many MCP servers require API tokens or credentials. Without a security layer:

  • AI models may see sensitive credentials

  • Token leakage becomes a risk

  • Credential rotation is manual and error-prone

No Real-Time Policy Enforcement

MCP can't validate whether a requested action complies with:

  • Corporate policies

  • Regulatory requirements

  • Data classification rules

  • Approval workflows

Limited Auditability

Standard MCP implementations lack:

  • Comprehensive logging of all tool invocations

  • Detailed audit trails for compliance (SOC 2, HIPAA, GxP)

  • Real-time monitoring and alerting

  • Historical analysis capabilities

This is why enterprises deploy MCP with an MCP Gateway that adds the governance, security, and compliance layer MCP lacks.

How Do MCP and MCP Gateways Work Together?

MCP provides the capability. An MCP Gateway ensures that capability is used safely.

An MCP Gateway sits between AI clients and MCP servers to provide:

✔ Tool-Level Authorization

Define exactly which users can access which tools under what conditions.

✔ Credential Proxying

Securely manage and inject credentials without exposing them to AI models.

✔ Real-Time Validation

Inspect tool calls for policy compliance before execution.

✔ Identity Mapping

Attribute every AI action to a specific human user with their permissions.

✔ Full Audit Logging

Maintain comprehensive records of all tool invocations for compliance and troubleshooting.

✔ Server Trust Evaluation

Validate that MCP servers behave correctly and haven't been compromised.

MCP alone is powerful but risky. MCP + Gateway = enterprise-ready, governed AI automation.

How Does MCP Compare to Traditional APIs?

Traditional API Integration

Architecture:

  • Custom implementation for each AI tool ↔ system connection

  • N tools × M systems = N×M custom integrations

  • Fragmented, non-standardized approach

Challenges:

  • Months of development per integration

  • Brittle code that breaks with API changes

  • No standardized error handling

  • Limited reusability across AI applications

Protocol-Based Integration with MCP

Architecture:

  • One MCP server per system works with all MCP-compatible AI tools

  • N tools + M systems = N+M implementations

  • Standardized, composable approach

Benefits:

  • Significantly reduced integration complexity

  • Standardized communication protocol (JSON-RPC 2.0)

  • Reusable MCP servers across multiple AI applications

  • Built-in capability discovery and negotiation

MCP replaces fragmented point-to-point integrations with a universal protocol that any AI application can speak.

Who Has Adopted the Model Context Protocol?

Anthropic (Creator)

  • Claude Desktop

  • Claude.ai with MCP connectors

  • Claude Code

  • Messages API (MCP support)

Development Tools

  • Zed: IDE with native MCP integration

  • Replit: Online IDE supporting MCP

  • Codeium: AI coding assistant with MCP

  • Sourcegraph: Code search platform with MCP

Enterprise Early Adopters

  • Block: Integrated MCP into internal systems

  • Apollo: Deployed MCP for AI workflows

Growing Ecosystem

A growing ecosystem of open-source MCP servers provides integrations for popular enterprise systems:

  • Google Drive, Slack, GitHub

  • PostgreSQL, MongoDB

  • Salesforce, ServiceNow

  • Stripe, Okta, Datadog

How Is Natoma Advancing Enterprise MCP Adoption?

Natoma provides the industry's most advanced governance platform for MCP-based AI systems, addressing the critical gap between MCP's technical capabilities and enterprise security requirements.

The Natoma MCP Gateway

✔ Granular Access Control: Define tool-level permissions based on user roles, departments, and security profiles

✔ Identity-Aware Actions: Every AI action is attributed to a specific human user with their permissions

✔ Secure Credential Management: Proxy credentials to MCP servers without exposing them to AI models

✔ Real-Time Oversight: Validate tool calls against corporate policies before execution

✔ Comprehensive Audit Trails: Maintain detailed logs for compliance (SOC 2, HIPAA, GxP)

✔ Server Trust Scoring: Evaluate MCP server behavior and detect anomalies

Curated MCP Server Registry

Natoma maintains a registry of verified, production-ready MCP servers for enterprise systems including MongoDB Atlas, GitHub, Slack, ServiceNow, Stripe, Okta, and more.

MCP enables enterprise AI. Natoma makes it safe and governed.

Frequently Asked Questions

What is the difference between MCP and traditional APIs?

MCP is a standardized protocol for AI-to-system communication, while traditional APIs are custom implementations for specific integrations. MCP uses JSON-RPC 2.0 to provide a universal way for AI applications to discover and invoke tools across different systems. This replaces fragmented point-to-point integrations (N×M complexity) with a protocol-based approach (N+M complexity) where one MCP server per system works with all MCP-compatible AI tools.

What are the limitations of the Model Context Protocol?

MCP lacks built-in enterprise governance and security controls. It has no native role-based access control, no identity mapping for audit trails, no secure credential management, and no real-time policy enforcement. MCP also doesn't provide comprehensive logging for compliance requirements like SOC 2 or HIPAA. These limitations are why enterprises deploy MCP with an MCP Gateway that adds the necessary security, governance, and compliance layers.

Who created the Model Context Protocol?

The Model Context Protocol was created by Anthropic and announced on November 25, 2024. Anthropic developed MCP as an open-source standard to enable AI applications to connect to external systems in a standardized way. The official analogy from Anthropic is that "MCP is like USB-C for AI applications"—providing one universal connection standard instead of fragmented custom integrations.

What companies have adopted MCP?

Anthropic (the creator) supports MCP across Claude Desktop, Claude.ai, and Claude Code. Development tools including Zed, Replit, Codeium, and Sourcegraph have integrated MCP. Enterprise early adopters include Block and Apollo. The MCP ecosystem is growing rapidly with open-source servers for popular enterprise systems like Google Drive, Slack, GitHub, PostgreSQL, and Salesforce.

How does MCP enable enterprise AI agents?

MCP enables enterprise AI agents by providing a standardized way to connect to business systems and perform actions. Instead of just answering questions, AI agents using MCP can query databases, send emails, update tickets, trigger workflows, and access live data across enterprise systems. The protocol's tool-based architecture allows agents to discover available capabilities, invoke them based on user intent, and receive structured responses—transforming AI from a passive assistant into an operational system.

What are MCP tools, resources, and prompts?

MCP defines three core primitives: Tools are executable functions that AI can invoke (like sending an email or querying a database). Resources are data sources that provide contextual information (like file contents or API responses). Prompts are reusable templates that structure AI interactions (like system prompts or few-shot examples). These primitives give AI applications standardized ways to take actions, access data, and maintain consistent behavior across different systems.

Is MCP secure for enterprise use?

MCP provides the technical foundation for AI-to-system integration but lacks built-in enterprise security controls. Raw MCP has no role-based access control, credential security, identity mapping, or comprehensive audit logging. Enterprises should deploy MCP with an MCP Gateway that adds policy enforcement, secure credential management, user identity attribution, and compliance-grade audit trails. This combination makes MCP safe for production enterprise use.

How does MCP reduce AI integration complexity?

MCP reduces integration complexity by replacing custom API implementations with a standardized protocol. Traditional approaches require N×M integrations where every AI tool needs custom code for every system. MCP uses an N+M approach where one MCP server per system works with all MCP-compatible AI applications. This significantly reduces development time, improves maintainability, and enables reusability across multiple AI tools and use cases.

Key Takeaways

  • MCP is the universal standard for connecting AI applications to enterprise systems, announced by Anthropic in November 2024

  • Protocol-based architecture replaces fragmented custom integrations with standardized JSON-RPC 2.0 communication

  • Three core primitives—tools, resources, and prompts—enable AI to take actions, access data, and maintain consistency

  • Enterprise adoption requires governance: MCP needs an MCP Gateway for security, permissions, and compliance

  • Growing ecosystem includes integrations with development tools (Zed, Replit, Codeium, Sourcegraph) and enterprise systems

Ready to Deploy MCP Safely in Your Enterprise?

Natoma provides the governance platform that makes MCP safe for production use. Our MCP Gateway adds tool-level permissions, identity-aware actions, secure credential management, and comprehensive audit trails.

Learn more at Natoma.ai

Related Resources:

About Natoma

Natoma enables enterprises to adopt AI agents securely. The secure agent access gateway empowers organizations to unlock the full power of AI, by connecting agents to their tools and data without compromising security.

Leveraging a hosted MCP platform, Natoma provides enterprise-grade authentication, fine-grained authorization, and governance for AI agents with flexible deployment models and out-of-the-box support for 100+ pre-built MCP servers.