Bigeye Staff
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July 29, 2026

What is Model Context Protocol (MCP)?

7 min read

TL;DR: The Model Context Protocol (MCP) is an open standard for connecting AI agents to external tools, data sources, and services. Released by Anthropic in November 2024 and now broadly adopted across the industry, MCP means organizations can build a connection to a data system once and any compliant AI agent can use it. By July 2026, 78% of enterprise AI teams have MCP-backed agents in production. This post covers what MCP is, how it works, and what the July 28 update changed for enterprise data teams.

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Before MCP, connecting an AI agent to an enterprise system meant building a custom integration. Want an agent to read from your data catalog? Write the connector. Your data warehouse? Write another one. Your observability platform? Another one after that. Every new AI use case meant new code to maintain, new failure modes to manage, and engineering work that didn't compound into anything shared. Each integration was its own project, starting from zero.

The Model Context Protocol (MCP) is an open standard that replaces that pattern. Instead of every AI application building its own connector for every tool, MCP defines a protocol both sides agree to implement. An AI agent that speaks MCP can connect to any service that exposes an MCP server. Build the server once, and any compliant AI client can use it.

Anthropic released MCP in November 2024 as an open-source standard. In its December 2025 ecosystem update, Anthropic reported more than 10,000 active public MCP servers and roughly 97 million monthly SDK downloads. OpenAI, Google, and Microsoft have all adopted the specification, and developer tools including Visual Studio Code, Cursor, and GitHub Copilot support MCP natively. According to Stacklok's 2026 software report, 41% of surveyed software organizations are running MCP servers in limited or broad production.

MCP is no longer a bet on a future ecosystem. It's the default infrastructure choice for enterprise AI agent connectivity.

MCP replaces custom integrations with a shared protocol

MCP follows a client-server architecture. Three participants are involved in every interaction: the host, the client, and the server.

The host is the AI application: Claude Desktop, Visual Studio Code, Claude Code, GitHub Copilot CLI, or a custom enterprise application running a language model. The host manages the overall agent experience and coordinates connections to multiple external services simultaneously.

The client lives inside the host. When the host connects to an external service, it creates an MCP client to manage that specific connection. A host running connections to five different services manages five MCP clients, each independently maintaining its own connection.

The server is the external service (your data catalog, your observability platform, your ticketing system) that exposes capabilities to AI clients through the MCP protocol. Servers can run locally on the same machine, using standard input and output streams, or remotely over HTTP.

What a server exposes falls into three types, defined by the MCP specification:

Tools are executable functions an agent can invoke: check data quality on a table, run a database query, profile a dataset, trace lineage on a column. Tools are how agents take actions in external systems rather than just reading from them.

Resources are data sources the agent can read for context: file contents, database records, API responses. Where a tool performs an action, a resource provides information.

Prompts are reusable interaction templates that help structure recurring workflows: system instructions for a specific task type, or few-shot examples that help the agent perform consistently across similar requests.

For most enterprise data teams, tools are where the practical value shows up first. When an agent has access to a data quality tool through MCP, it can check whether a table has open quality issues in the same workflow where it's querying that table, without a human pulling the information from a separate interface and pasting it into the conversation.

Stdio and HTTP: two transports that determine where MCP servers run

MCP supports two transport mechanisms, which determine how the host and server communicate.

Stdio transport runs the server as a local process on the same machine as the host, communicating through standard input and output streams. This works well for developer tools and local agent workflows where the data doesn't need to leave the machine.

Streamable HTTP transport communicates over HTTP, enabling remote servers to serve many clients simultaneously. This is the transport formalized in the July 28, 2026 MCP specification update, and it's what makes enterprise-scale MCP deployment practical. Servers can run on standard cloud infrastructure, scale horizontally, and fit into existing reliability and monitoring setups without modification.

The July 28 update also made MCP fully stateless. Every request now carries all the information needed to process it. Servers don't retain session state between requests. This brings MCP in line with standard REST API patterns, which means the infrastructure skills and tooling data engineering teams already use apply directly to running MCP servers in production.

What the July 28 MCP update means for enterprise data and AI teams →

Why data teams are paying attention now

MCP's significance for data teams isn't primarily technical. It's about what happens to deployment pace when the cost of connecting agents to enterprise systems drops.

Before MCP, the engineering overhead of agent connectivity acted as an unofficial constraint on how many agents an organization could run. Building and maintaining custom integrations consumed engineering capacity. Teams ran fewer agents than they might have, across fewer systems, with longer cycles between iterations.

MCP removes much of that overhead. When connecting an agent to a new data system takes hours rather than weeks, organizations can deploy more agents, across more systems, at faster cycles. The constraint on how many agents an enterprise runs shifts from engineering capacity to intent and governance.

That shift matters for data teams because manual governance approaches don't scale alongside growing agent fleets. Organizations managing AI activity through manual reviews and periodic audits will find that model breaks down as the number of agents grows. The questions data teams have always asked about pipelines and business intelligence (where did this data come from, is it accurate, who's accountable for what happened downstream) don't get simpler when an organization runs dozens of agents simultaneously against the same data. They get harder to answer without infrastructure designed to support them.

Data teams that already have governance frameworks for their pipelines are doing most of the analytical work that AI agent governance requires. The next step is extending that work to cover agent activity specifically, using the same observability and lineage signals already in place.

Bigeye's MCP Server puts data context directly into the agent workflow

Getting data quality, lineage, and catalog context into an AI agent workflow currently requires a manual step: look up the information in Bigeye, copy it, paste it into the chat. Bigeye's MCP Server (currently in Beta) removes that step.

An agent running on Claude Code, Snowflake Cortex Code, or GitHub Copilot CLI can check quality issues on a table, trace lineage, search the catalog, profile a dataset before analysis, or manage monitors and dimensions, all from within the agent workflow. The server is available at mcpgateway.bigeye.com/mcp and is open source for teams that need to self-host in air-gapped environments.

The Agent Trust Hub operates alongside the MCP Server at the governance layer. As agents interact with Bigeye through MCP, those interactions become part of the audit record: which data each agent accessed, which quality issues it encountered, and which lineage paths it queried. For data teams running agents at scale, that record answers governance questions without requiring manual review of individual agent sessions.

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Resource
Monthly cost ($)
Number of resources
Time (months)
Total cost ($)
Software/Data engineer
$15,000
3
12
$540,000
Data analyst
$12,000
2
6
$144,000
Business analyst
$10,000
1
3
$30,000
Data/product manager
$20,000
2
6
$240,000
Total cost
$954,000
Role
Goals
Common needs
Data engineers
Overall data flow. Data is fresh and operating at full volume. Jobs are always running, so data outages don't impact downstream systems.
Freshness + volume
Monitoring
Schema change detection
Lineage monitoring
Data scientists
Specific datasets in great detail. Looking for outliers, duplication, and other—sometimes subtle—issues that could affect their analysis or machine learning models.
Freshness monitoringCompleteness monitoringDuplicate detectionOutlier detectionDistribution shift detectionDimensional slicing and dicing
Analytics engineers
Rapidly testing the changes they’re making within the data model. Move fast and not break things—without spending hours writing tons of pipeline tests.
Lineage monitoringETL blue/green testing
Business intelligence analysts
The business impact of data. Understand where they should spend their time digging in, and when they have a red herring caused by a data pipeline problem.
Integration with analytics toolsAnomaly detectionCustom business metricsDimensional slicing and dicing
Other stakeholders
Data reliability. Customers and stakeholders don’t want data issues to bog them down, delay deadlines, or provide inaccurate information.
Integration with analytics toolsReporting and insights

What does MCP stand for?

MCP stands for Model Context Protocol. The "model" refers to the language model at the center of an AI agent; "context" refers to the external information and capabilities that model can access; and "protocol" refers to the standardized communication rules that define how that access works.

Who created MCP?

Anthropic created MCP and released it as an open-source standard in November 2024. It's now governed as an open protocol with contributions from across the industry. OpenAI, Google, Microsoft, and others have adopted the specification, and the MCP GitHub organization maintains the reference implementations and specification documents.

What's the difference between MCP and a regular API?

A regular API defines how one specific system communicates with one specific other system. An API for your data catalog specifies the exact endpoints, parameters, and response formats for that catalog and nothing else. Another AI application connecting to a different catalog needs an entirely separate integration. MCP defines a standard way for any AI client to discover and interact with any MCP-compliant server, regardless of what that server does. Instead of building one integration per tool per AI application, teams build one MCP server per tool, and any compliant AI client can use it.

What is an MCP server?

An MCP server is a program that exposes data, tools, or interaction templates to AI agents through the MCP protocol. An MCP server for a data catalog might expose a tool for searching the catalog, a resource for reading table metadata, and a prompt template for common catalog queries. The server can run locally on the same machine as the AI agent or remotely over HTTP. Bigeye's MCP Server exposes tools for checking data quality, tracing lineage, and managing monitors, all accessible to any MCP-compliant AI agent.

How does MCP relate to AI governance?

MCP handles connectivity. What organizations do with that connectivity — which data agents access, under what policies, with what audit trail — is a governance question that MCP doesn't answer. What MCP does change is the scale at which those questions arise. When connecting agents to enterprise systems is fast and low-cost, organizations run more agents against more data with shorter iteration cycles. Data teams that build governance infrastructure alongside MCP adoption are in a stronger position than teams that treat it as a follow-on project. The Agent Trust Hub is Bigeye's answer to that governance layer, connecting agent activity to the quality, lineage, and classification signals already in the platform.

What changed in the July 28, 2026 MCP update?

The July 28, 2026 update introduced Streamable HTTP transport and made MCP fully stateless. Previously, some MCP implementations required persistent connections and server-side session state. The update means every MCP request carries all the information needed to process it independently. Servers can run on standard HTTP infrastructure (serverless functions, containers, load-balanced API services) using the same patterns teams already apply to REST APIs. The full analysis is here.

about the author

Bigeye Staff

Bigeye Staff represents the collective voice of the Bigeye team. Each article is informed by the expertise of individual contributors and strengthened through collaboration across our engineers, data experts, and product leaders, reflecting our shared mission to help teams build trust in their data.

about the author

about the author

Bigeye Staff represents the collective voice of the Bigeye team. Each article is informed by the expertise of individual contributors and strengthened through collaboration across our engineers, data experts, and product leaders, reflecting our shared mission to help teams build trust in their data.

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