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Running Your Own Remote MCP Server with Azure Functions

Pablo Moreno September 9, 2025 Article

Let’s unravel the world of BYO (Bring Your Own) Remote MCP Servers, especially when deployed as Azure Functions. If you’re thinking about cloud efficiency, developer control, and cost optimization, you’re in the right place.

What Is MCP?

MCP stands for Message Communication Protocol. It’s a framework that enables different applications, systems, or devices to exchange messages in a standardized and often asynchronous way. MCP sits at the core of many scalable systems, handling everything from IoT device communication to microservice orchestration.

While many platforms offer embedded MCP capabilities, developers often create external MCP servers to:

  • Gain more control over the protocol implementation and custom business logic
  • Integrate with specialized backend systems not natively supported by SaaS providers
  • Scale independently from the main application, especially for high-throughput scenarios
  • Enhance security and compliance by keeping sensitive operations in a controlled environment

This “bring your own” approach means you’re not boxed in by platform limitations and can innovate freely.

Why Host the MCP Server on Azure Functions?

Azure Functions introduces the magic of serverless computing to your MCP infrastructure. Serverless computing is a cloud computing model where the cloud provider automatically manages the infrastructure, allowing developers to focus solely on writing code. In this model, the cloud provider dynamically allocates resources as needed, and users are only charged for the actual computer resources consumed during the execution of their code.

Among many benefits, perhaps the FlexCompution plan is one of the most interesting aspects of serverless computing. This plan supports scale-to-zero and pay-per-use billing, meaning you are not billed for idle time and only pay for the compute resources consumed during message processing.

Here’s why developers love this setup of MCP Servers on Azure Functions:

  • Event-driven execution: MCP logic can trigger on demand in response to messages or events.
  • No infrastructure management: While you focus on your protocol and integration logic, Azure takes care of the rest.
  • Seamless integration: Azure Functions work beautifully with other Azure services (like Event Grid, Storage, Cosmos DB), making your workflow smoother and more flexible.

In short, you get power, flexibility, and efficiency without the operational headache.

Integrating MCP SDK in Azure Functions: Python Sample

Let’s look at a basic example of how you might integrate an MCP SDK into an Azure Function using Python. We’ll assume you have an MCP SDK available as a Python package.

In this snippet, whenever an HTTP request arrives at your Azure Function endpoint, the MCP server processes the message and sends back a response — all without you having to manage a single VM.

FlexConsumption: Scale-to-Zero and Pay-Per-Use Explained

Azure Functions supports a FlexConsumption plan, which is phenomenal for workloads like MCP servers. It enables:

  • Scale-to-zero: When there are no MCP messages to process, your Functions can scale down to zero instances. You’re not billed for idle time!
  • Automatic scaling: As message traffic increases, Azure Functions automatically scales up to meet demand.
  • Pay-per-use billing: You’re charged only for the actual compute resources consumed during message processing, which means significant savings over always-on servers.

For developers, this means you can run a robust, production-grade MCP server with minimal cost during quiet periods and maximum responsiveness during peak loads.

Final Thoughts

Building your own remote MCP server unlocks customization and control. Running it as an Azure Function means you enjoy the benefits of serverless — no infrastructure to manage, seamless Azure integration, flexible scaling, and fair billing. The FlexConsumption model is perfect for bursty workloads, ensuring you pay only for what you use.

If you’re ready to modernize your messaging infrastructure, Azure Functions and MCP are a powerful duo. Happy coding!

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