Build Enterprise-Ready Agents with Microsoft IQ and Oracle AI Database@Azure — now with Oracle MCP

We’re making it easier to bring Oracle data into intelligent applications with Microsoft IQ and Oracle AI Database@Azure. Oracle Managed Database MCP (Model Context Protocol) remote servers are now available in Microsoft Foundry—introducing a fully managed option that simplifies AI integration without disrupting existing MCP workflows.

This builds on the momentum with Oracle AI Database@Azure, where enterprises are already pushing the boundaries of what's possible with Oracle data in the Microsoft Cloud. In just one year, we've shipped capabilities like:

• Oracle data mirrored into Microsoft Fabric — near real-time replication of Oracle data into OneLake for Analytics and AI.
• Fabric Data Agents — query mirrored Oracle data in natural language, then publish those agents as MCP servers, Teams apps, Copilot Studio connectors, or Microsoft Foundry tools.
• Custom copilots built with Microsoft Copilot Studio — secure, no-code access to Oracle data directly within Microsoft 365.
• Blueprints for enterprise-grade agents with Oracle data in Microsoft Cloud— blueprints for production‑grade, business‑aware AI agents powered by LLM of your choice, grounded in Oracle data, and enriched by the Microsoft IQ stack, with identity, governance, and compliance built-in.

For developers, Oracle Database MCP server can already be enabled locally on VS Code through Oracle SQLcl MCP Server Integration available as part of the Oracle SQL Developer extension or hosted on Azure services such as Azure Functions and Azure Container Apps — providing direct, protocol-based interaction with Oracle databases.

What changes now is how simple this becomes. With a fully managed OCI MCP discoverable in Microsoft Foundry tools catalog, developers can reduce operational overhead and focus on building intelligent, data-driven applications without sacrificing flexibility or control. We are excited about what this protocol unlocks: Oracle MCP is the connective tissue that lets Microsoft IQ bring its full intelligence to bear on Oracle enterprise data.

“AI agents are exploding in the enterprise, but to create real value they need secure, governed access to trusted business data. With OCI Managed MCP Service for Oracle AI Database@Azure, customers can connect Microsoft IQ and agentic applications to Oracle Database with strict access governance and deep data security down to the cell level—bringing together Oracle’s database innovation with Microsoft’s AI innovation.” 
- Nathan Thomas, SVP Multicloud, Oracle

The Magic: Unified Intelligence with Microsoft IQ

The real value is agents that reason across every layer of organizational intelligence — structured, unstructured, and real-time:

• Fabric IQ — mirrored Oracle data analytics with ontology and graph, via OneLake
• Foundry IQ — knowledge grounding from documents in SharePoint, Blob, and Fabric
• Work IQ — M365 work signals (email, meetings, Teams) correlated with Oracle business data
• Oracle live data — transactional insights at runtime, via Oracle MCP

That combination answers questions no single system can:

"APAC meeting frequency dropped 30% last month — how did that affect Q1 sales, and does our SOP require escalation?"

One agent. Live Oracle data, mirrored analytics, policy documents, and work signals — reasoned together. That's the magic Oracle MCP makes possible. 

Three paths to production with Oracle MCP

All three deployment models remain available. Customers choose what fits their architecture, governance, and operational needs.

Path 1: Local MCP via VS Code — Developer Productivity

Run MCP on your laptop for rapid prototyping and developer inner-loop productivity. The SQL Developer Extension for VS Code automatically registers an SQLcl MCP Server for GitHub Copilot Agent Mode — zero setup beyond installing the extension and configuring a database connection.

Best for: individual developers exploring schemas, generating SQL from natural language, prototyping agent interactions, and automating DBA tasks — all from within VS Code.

Path 2: Self-Hosted MCP on Azure — Enterprise Control

Deploy Oracle's Database MCP server on Azure Functions (serverless scaling, pay-per-execution) or Azure Container Apps (always-on, full container control, KEDA autoscaling). Both options support VNET integration with private endpoints to Oracle AI Database@Azure, Managed Identity for Key Vault credential access, and Azure API Management for rate limiting and OAuth2 enforcement.

Best for: teams that need full infrastructure control, custom runtime dependencies, lower latency, enterprise networking (private endpoints, NSGs), and centralized governance — one MCP server shared by many agents.

Path 3: Fully Managed Oracle MCP in OCI — NEW 

Register a production-grade, Oracle-managed database tools remote MCP server with zero infrastructure to manage. Browse the Foundry tools catalog, select Oracle remote MCP, authenticate and register your remote database tools MCP server pre-configured in OCI as a tool, and your agents in Microsoft foundry can now use this as a tool connection to fetch live Oracle data insights. Oracle handles deployment, patching, and scale. 

Best for: teams that want the fastest path to production with no servers to deploy. You focus on the agent logic.

What you can build: live data agents

The managed MCP option slots directly into the patterns developers are already using to put Oracle data to work in Foundry — querying live at runtime, with zero data movement:

With the Microsoft Foundry Catalog, the “Foundry + Oracle MCP” blueprint now has a new deployment option —managed MCP— that eliminates infrastructure overhead while preserving the same agent capabilities. For analytics-heavy scenarios, you can also mirror Oracle data into Fabric (via Oracle Database Mirror or Open Mirror + GoldenGate service running on Oracle Database@azure) and expose it through Fabric Data Agents.

Security and governance, built-in

Enterprise agents are only useful if they're trustworthy. Regardless of which MCP path you choose, the security and governance model is consistent:

For the managed MCP path, Oracle adds authentication via OAuth2 client credentials, server-side logging, and OCI-native security policies.

Tying it all together, the A365 Control Plane manages every IQ layer, agent publishing, DLP, sensitivity labels (MIP), Conditional Access, and centralized audit from a single pane of glass — so agents stay governed as they move from prototype to production.

To tie it all together, Microsoft IQ delivers unified, governed intelligence across your enterprise. Oracle AI Database@Azure brings your Oracle data into the Microsoft ecosystem. And Oracle MCP — now fully managed in Microsoft Foundry — is the enabler that makes building enterprise-ready agents effortless.

What's Next

Coming Soon: The Complete Oracle AI Database@Azure AI Agent Playbook

We're building a comprehensive playbook of 14 blueprints for building AI solutions on Oracle AI Database@Azure — from low-code and no-code patterns with Microsoft Copilot Studio and Power Apps, to full agentic AI solutioning with Microsoft Foundry, Oracle MCP, and the Microsoft IQ intelligence layers across three categories:

• Zero Data Movement (Live Oracle Data) — Copilot Studio, Microsoft Foundry + MCP, Microsoft Foundry + ORDS, Power Apps, Logic Apps
• Managed Replication (Mirrored Data Analytics) — Fabric Mirroring, GoldenGate CDC, Data Agents published as MCP/Teams/Copilot Studio/Microsoft Foundry tools
• AI Enrichment (IQ Layers) — Fabric IQ, Foundry IQ, Work IQ, Unified IQ

Stay tuned. Catch us at these Microsoft Build sessions to see it all in action.

Catch Us at Microsoft Build

• Build AI Apps with Oracle AI Database@Azure, MCP, and GitHub Copilot — Wed Jun 3, 2:30 PM PDT — Rajya Laxmi Yellajosyula (Microsoft) & Partha Srinivasan (Oracle). Live demo: MCP + Copilot orchestrating workflows across Oracle and Fabric using natural language.
• Move from Data to Intelligence with Oracle MCP and Microsoft IQ  — Pre-recorded, Online — Ram Kakani (Microsoft) & Jeff Smith (Oracle). OCI Managed MCP + Work IQ, Fabric IQ, and Foundry IQ powering enterprise agentic experiences at scal...