---
id: video/LerAo-GGl8U
type: video
title: "Microsoft presents: Next level administration skills with the admin MCP server and agents"
summary: "Business Central admin MCP server (in public preview): a remote, stateless MCP server exposing Admin API functionality to AI agents, with Entra ID and OAuth 2.1 authentication. Evidence for setup in VS Code and Copilot Studio, the multi-tenant MCP proxy sample, and the excluded destructive operations."
tier: community
language: en
tags:
  - mcp server
  - admin center api
  - oauth 2.1
  - agents
  - multi-tenant administration
  - vs code setup
  - entra id
  - public preview
  - github copilot
  - custom connectors
  - json rpc
  - extension management
system: administration
review:
  state: reviewed
  by: opus
  at: "2026-10-07T23:17:32.007Z"
  flags: []
generated:
  at: "2026-10-07T23:17:32.074Z"
  pipeline: 0.2.0
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    summarize-video: 2
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evidence:
  - kind: video
    url: https://www.youtube.com/watch?v=LerAo-GGl8U&t=318s
    title: "Admin MCP Server for Business Central: preview"
    date: "2026-10-01T05:38:51.000Z"
    commit: null
    t: 318
    quote: this is a public preview and um we are hoping to open up more more APIs and more scenarios going forward
  - kind: video
    url: https://www.youtube.com/watch?v=LerAo-GGl8U&t=2633s
    title: "Publish extension API limitation: announced"
    date: "2026-10-01T05:38:51.000Z"
    commit: null
    t: 2633
    quote: we would like to add it to admin API. So, it most likely will appear in in the future.
  - kind: video
    url: https://www.youtube.com/watch?v=LerAo-GGl8U&t=118s
    title: "Microsoft presents: Next level administration skills with the admin MCP server and agents"
    date: "2026-10-01T05:38:51.000Z"
    commit: null
    t: 118
    quote: MCP is sort of like a USB-C protocol for providing tools and resources for AI agents.
  - kind: video
    url: https://www.youtube.com/watch?v=LerAo-GGl8U&t=134s
    title: "Microsoft presents: Next level administration skills with the admin MCP server and agents"
    date: "2026-10-01T05:38:51.000Z"
    commit: null
    t: 134
    quote: it's just an API that is wrapped in a JSON RPC too and provided to agents with a sort of natural language description that
  - kind: video
    url: https://www.youtube.com/watch?v=LerAo-GGl8U&t=194s
    title: "Microsoft presents: Next level administration skills with the admin MCP server and agents"
    date: "2026-10-01T05:38:51.000Z"
    commit: null
    t: 194
    quote: we are kind of providing the very very close experience to admin API that we already have in Business Central for administrative purposes
  - kind: video
    url: https://www.youtube.com/watch?v=LerAo-GGl8U&t=286s
    title: "Microsoft presents: Next level administration skills with the admin MCP server and agents"
    date: "2026-10-01T05:38:51.000Z"
    commit: null
    t: 286
    quote: we're exposing uh uh all things that are already available on Admin API except some that are considered as a uh disruptive destructive changes
  - kind: video
    url: https://www.youtube.com/watch?v=LerAo-GGl8U&t=318s
    title: "Microsoft presents: Next level administration skills with the admin MCP server and agents"
    date: "2026-10-01T05:38:51.000Z"
    commit: null
    t: 318
    quote: this is a public preview and um we are hoping to open up more more APIs and more scenarios going forward
links:
  learn: []
  objects: []
  features: []
  topics: []
  localizations: []
  videos: []
  posts: []
  guidelines: []
video_id: LerAo-GGl8U
channel: yt-mibuso
source_name: mibuso.com / BC TechDays
url: https://www.youtube.com/watch?v=LerAo-GGl8U
published_at: "2026-10-01T05:38:51.000Z"
duration_s: 2744
captions: derived
audience:
  - administrator
  - partner
  - developer
  - functional consultant
chapters:
  - t: 0
    title: Introduction and agenda overview
  - t: 77
    title: MCP protocol fundamentals and architecture
  - t: 159
    title: MCP types, remote servers, and stateless design
  - t: 234
    title: Admin MCP authentication, endpoints, and API exposure
  - t: 318
    title: Public preview status and safety boundaries
  - t: 353
    title: "Demo 1 setup: Visual Studio Code and admin MCP connection"
  - t: 502
    title: "Demo 1: Querying environments, quotas, and usage via agent"
  - t: 620
    title: "Demo 1: Investigating failed upgrades and security limitations"
  - t: 786
    title: "Demo: Agent-driven environment operations"
  - t: 979
    title: Technical overview of Admin MCP authentication
  - t: 1080
    title: Setting up Admin MCP in Copilot Studio
  - t: 1185
    title: Entra application registration and permissions
  - t: 1281
    title: Configuring custom MCP connector in Copilot Studio
  - t: 1539
    title: Testing the connector and creating agents with Propeller Studio
  - t: 1764
    title: Single-tenant limitations and multi-tenant scenario introduction
  - t: 1834
    title: Authentication architecture and multi-tenancy explanation
  - t: 1967
    title: MCP proxy solution and BC Tech repository walkthrough
  - t: 2073
    title: Setting up GitHub Copilot with multi-tenant MCP proxy
  - t: 2218
    title: Multi-tenant agent execution and authentication persistence
  - t: 2415
    title: Getting started and public preview announcement
  - t: 2485
    title: Q&A - Multi-tenant setup and authentication flows
  - t: 2596
    title: Q&A - Extension limitations and API coverage
  - t: 2656
    title: Q&A - On-premises support and environment provisioning
features:
  - name: Admin MCP Server for Business Central
    status: preview
    t: 180
    verified: true
    status_source: video
  - name: Model Context Protocol (MCP) Fundamentals
    status: unclear
    t: 118
    verified: false
    status_source: video
  - name: OAuth 2.1 Authentication for Admin MCP
    status: unclear
    t: 246
    verified: false
    status_source: video
  - name: Multi-Tenant Administration via MCP
    status: unclear
    t: 62
    verified: false
    status_source: video
  - name: Admin MCP Setup in Visual Studio Code
    status: unclear
    t: 389
    verified: false
    status_source: video
  - name: MCP Agent-Assisted Environment Diagnostics
    status: unclear
    t: 595
    verified: false
    status_source: video
  - name: Admin MCP Server authentication flow
    status: unclear
    t: 992
    verified: false
    status_source: video
  - name: Copilot Studio MCP custom connector setup
    status: unclear
    t: 1281
    verified: false
    status_source: video
  - name: Agent tool invocation via MCP
    status: unclear
    t: 1539
    verified: false
    status_source: video
  - name: Admin MCP server connection
    status: unclear
    t: 1562
    verified: false
    status_source: video
  - name: MCP proxy for multi-tenant partner scenarios
    status: unclear
    t: 1834
    verified: false
    status_source: video
  - name: Encrypted authentication data persistence
    status: unclear
    t: 2364
    verified: false
    status_source: video
  - name: GitHub Copilot CLI with MCP
    status: unclear
    t: 2073
    verified: false
    status_source: video
  - name: S2S authentication option for MCP proxy
    status: unclear
    t: 2443
    verified: false
    status_source: video
  - name: Admin MCP samples in BC Tech GitHub repository
    status: unclear
    t: 2433
    verified: false
    status_source: video
  - name: Extension uninstall limitation
    status: unclear
    t: 2596
    verified: false
    status_source: video
  - name: Publish extension API limitation
    status: announced
    t: 2622
    verified: true
    status_source: video
objects_mentioned:
  - codeunit Demo PTE codeunit
  - other BC admin center
  - other CP tools
  - other get environments tool
quotes:
  - t: 118
    text: MCP is sort of like a USB-C protocol for providing tools and resources for AI agents.
    check: exact
  - t: 134
    text: it's just an API that is wrapped in a JSON RPC too and provided to agents with a sort of natural language description that
    check: exact
  - t: 194
    text: we are kind of providing the very very close experience to admin API that we already have in Business Central for administrative purposes
    check: exact
  - t: 286
    text: we're exposing uh uh all things that are already available on Admin API except some that are considered as a uh disruptive destructive changes
    check: exact
  - t: 318
    text: this is a public preview and um we are hoping to open up more more APIs and more scenarios going forward
    check: exact
---

# Microsoft presents: Next level administration skills with the admin MCP server and agents

> Business Central admin MCP server (in public preview): a remote, stateless MCP server exposing Admin API functionality to AI agents, with Entra ID and OAuth 2.1 authentication. Evidence for setup in VS Code and Copilot Studio, the multi-tenant MCP proxy sample, and the excluded destructive operations.

[Watch on YouTube](https://www.youtube.com/watch?v=LerAo-GGl8U) · mibuso.com / BC TechDays · 2026-10-01 · 45:44 · tier community · reviewed (checked by Opus)

## Overview

The session explains MCP as a protocol that wraps APIs in JSON RPC with natural language descriptions, then shows how the Business Central admin MCP server applies it to administration. The server is remote, stateless, SaaS-only and close in design to the Admin Center API. Authentication uses Entra ID with OAuth 2.1 and a well-known discovery endpoint.

Demos cover a single-tenant setup in Visual Studio Code, where the agent discovers 42 tools and queries environments, quotas and database usage, and investigates a failed upgrade. A Copilot Studio custom connector is set up with an Entra app registration. For partners with many customer tenants, an MCP proxy sample from the BC Tech GitHub repository is used with GitHub Copilot CLI. The Q&A covers multi-tenant authentication, extension limits and on-premises support.

## Key points

- The admin MCP server is in public preview, is SaaS-only and does not cover on-premises.
- In VS Code the server is added in settings and the agent discovered 42 tools; no custom client is needed for the admin flow.
- Destructive operations are deliberately not exposed: no uninstalling apps, deleting or renaming environments, setting or clearing security groups, or linking/unlinking Power Platform. This may be reconsidered later.
- Publishing extensions is not part of the admin API; the team says it would like to add it, with no timeline given.
- Copilot Studio needs an Entra app registration, a manual redirect URI and a custom MCP connector with OAuth endpoints, client credentials and scopes. Only delegated flows work, so a user must sign in interactively.
- For partners with many tenants, the BC Tech repository has an MCP proxy sample that adds a tenant ID parameter and per-tenant authentication tools, and stores authentication data encrypted on the local machine.
- The proxy sample can be changed to use S2S authentication, but this needs code changes and an application setup. It is sample code, not a turnkey solution.

## Chapters

- [0:00](https://www.youtube.com/watch?v=LerAo-GGl8U&t=0s) Introduction and agenda overview
- [1:17](https://www.youtube.com/watch?v=LerAo-GGl8U&t=77s) MCP protocol fundamentals and architecture
- [2:39](https://www.youtube.com/watch?v=LerAo-GGl8U&t=159s) MCP types, remote servers, and stateless design
- [3:54](https://www.youtube.com/watch?v=LerAo-GGl8U&t=234s) Admin MCP authentication, endpoints, and API exposure
- [5:18](https://www.youtube.com/watch?v=LerAo-GGl8U&t=318s) Public preview status and safety boundaries
- [5:53](https://www.youtube.com/watch?v=LerAo-GGl8U&t=353s) Demo 1 setup: Visual Studio Code and admin MCP connection
- [8:22](https://www.youtube.com/watch?v=LerAo-GGl8U&t=502s) Demo 1: Querying environments, quotas, and usage via agent
- [10:20](https://www.youtube.com/watch?v=LerAo-GGl8U&t=620s) Demo 1: Investigating failed upgrades and security limitations
- [13:06](https://www.youtube.com/watch?v=LerAo-GGl8U&t=786s) Demo: Agent-driven environment operations
- [16:19](https://www.youtube.com/watch?v=LerAo-GGl8U&t=979s) Technical overview of Admin MCP authentication
- [18:00](https://www.youtube.com/watch?v=LerAo-GGl8U&t=1080s) Setting up Admin MCP in Copilot Studio
- [19:45](https://www.youtube.com/watch?v=LerAo-GGl8U&t=1185s) Entra application registration and permissions
- [21:21](https://www.youtube.com/watch?v=LerAo-GGl8U&t=1281s) Configuring custom MCP connector in Copilot Studio
- [25:39](https://www.youtube.com/watch?v=LerAo-GGl8U&t=1539s) Testing the connector and creating agents with Propeller Studio
- [29:24](https://www.youtube.com/watch?v=LerAo-GGl8U&t=1764s) Single-tenant limitations and multi-tenant scenario introduction
- [30:34](https://www.youtube.com/watch?v=LerAo-GGl8U&t=1834s) Authentication architecture and multi-tenancy explanation
- [32:47](https://www.youtube.com/watch?v=LerAo-GGl8U&t=1967s) MCP proxy solution and BC Tech repository walkthrough
- [34:33](https://www.youtube.com/watch?v=LerAo-GGl8U&t=2073s) Setting up GitHub Copilot with multi-tenant MCP proxy
- [36:58](https://www.youtube.com/watch?v=LerAo-GGl8U&t=2218s) Multi-tenant agent execution and authentication persistence
- [40:15](https://www.youtube.com/watch?v=LerAo-GGl8U&t=2415s) Getting started and public preview announcement
- [41:25](https://www.youtube.com/watch?v=LerAo-GGl8U&t=2485s) Q&A - Multi-tenant setup and authentication flows
- [43:16](https://www.youtube.com/watch?v=LerAo-GGl8U&t=2596s) Q&A - Extension limitations and API coverage
- [44:16](https://www.youtube.com/watch?v=LerAo-GGl8U&t=2656s) Q&A - On-premises support and environment provisioning

## Features

| Feature | Status | At | Evidence |
|---|---|---|---|
| Admin MCP Server for Business Central | preview, demoed | [3:00](https://www.youtube.com/watch?v=LerAo-GGl8U&t=180s) | "this is a public preview and um we are hoping to open up more more APIs and more scenarios going forward" ([5:18](https://www.youtube.com/watch?v=LerAo-GGl8U&t=318s)) |
| Model Context Protocol (MCP) Fundamentals | status not stated, demoed | [1:58](https://www.youtube.com/watch?v=LerAo-GGl8U&t=118s) |  |
| OAuth 2.1 Authentication for Admin MCP | status not stated, demoed | [4:06](https://www.youtube.com/watch?v=LerAo-GGl8U&t=246s) |  |
| Multi-Tenant Administration via MCP | status not stated, demoed | [1:02](https://www.youtube.com/watch?v=LerAo-GGl8U&t=62s) |  |
| Admin MCP Setup in Visual Studio Code | status not stated, demoed | [6:29](https://www.youtube.com/watch?v=LerAo-GGl8U&t=389s) |  |
| MCP Agent-Assisted Environment Diagnostics | status not stated, demoed | [9:55](https://www.youtube.com/watch?v=LerAo-GGl8U&t=595s) |  |
| Admin MCP Server authentication flow | status not stated, demoed | [16:32](https://www.youtube.com/watch?v=LerAo-GGl8U&t=992s) |  |
| Copilot Studio MCP custom connector setup | status not stated, demoed | [21:21](https://www.youtube.com/watch?v=LerAo-GGl8U&t=1281s) |  |
| Agent tool invocation via MCP | status not stated, demoed | [25:39](https://www.youtube.com/watch?v=LerAo-GGl8U&t=1539s) |  |
| Admin MCP server connection | status not stated, demoed | [26:02](https://www.youtube.com/watch?v=LerAo-GGl8U&t=1562s) |  |
| MCP proxy for multi-tenant partner scenarios | status not stated, demoed | [30:34](https://www.youtube.com/watch?v=LerAo-GGl8U&t=1834s) |  |
| Encrypted authentication data persistence | status not stated, demoed | [39:24](https://www.youtube.com/watch?v=LerAo-GGl8U&t=2364s) |  |
| GitHub Copilot CLI with MCP | status not stated, demoed | [34:33](https://www.youtube.com/watch?v=LerAo-GGl8U&t=2073s) |  |
| S2S authentication option for MCP proxy | status not stated | [40:43](https://www.youtube.com/watch?v=LerAo-GGl8U&t=2443s) |  |
| Admin MCP samples in BC Tech GitHub repository | status not stated | [40:33](https://www.youtube.com/watch?v=LerAo-GGl8U&t=2433s) |  |
| Extension uninstall limitation | status not stated, demoed | [43:16](https://www.youtube.com/watch?v=LerAo-GGl8U&t=2596s) |  |
| Publish extension API limitation | announced | [43:42](https://www.youtube.com/watch?v=LerAo-GGl8U&t=2622s) | "we would like to add it to admin API. So, it most likely will appear in in the future." ([43:53](https://www.youtube.com/watch?v=LerAo-GGl8U&t=2633s)) |

## AL objects mentioned

As heard in the captions. A name that matches one object page by exact type and name links to it; the others stay as named.

- codeunit "Demo PTE codeunit" at [10:51](https://www.youtube.com/watch?v=LerAo-GGl8U&t=651s)
- other "BC admin center" at [37:20](https://www.youtube.com/watch?v=LerAo-GGl8U&t=2240s)
- other "CP tools" at [37:20](https://www.youtube.com/watch?v=LerAo-GGl8U&t=2240s)
- other "get environments tool" at [39:52](https://www.youtube.com/watch?v=LerAo-GGl8U&t=2392s)

Not found in BC28-30: codeunit "Demo PTE codeunit".

## Quotes

- [1:58](https://www.youtube.com/watch?v=LerAo-GGl8U&t=118s) "MCP is sort of like a USB-C protocol for providing tools and resources for AI agents."
- [2:14](https://www.youtube.com/watch?v=LerAo-GGl8U&t=134s) "it's just an API that is wrapped in a JSON RPC too and provided to agents with a sort of natural language description that"
- [3:14](https://www.youtube.com/watch?v=LerAo-GGl8U&t=194s) "we are kind of providing the very very close experience to admin API that we already have in Business Central for administrative purposes"
- [4:46](https://www.youtube.com/watch?v=LerAo-GGl8U&t=286s) "we're exposing uh uh all things that are already available on Admin API except some that are considered as a uh disruptive destructive changes"
- [5:18](https://www.youtube.com/watch?v=LerAo-GGl8U&t=318s) "this is a public preview and um we are hoping to open up more more APIs and more scenarios going forward"

## Disclaimers in the video

- [1:02](https://www.youtube.com/watch?v=LerAo-GGl8U&t=62s) preview: that we enabled for our partners by providing some samples on our open-source BC Tech repository on GitHub
- [5:18](https://www.youtube.com/watch?v=LerAo-GGl8U&t=318s) preview: this is a public preview and um we are hoping to open up more more APIs and more scenarios going forward
- [13:19](https://www.youtube.com/watch?v=LerAo-GGl8U&t=799s) preview: This is a security measure for our public preview.
- [40:43](https://www.youtube.com/watch?v=LerAo-GGl8U&t=2443s) not-in-this-release: you can even use them S2S authentication if you have the application and you uh, change this sample a little ...
- [41:14](https://www.youtube.com/watch?v=LerAo-GGl8U&t=2474s) preview: this is a a public preview. It's version one.
- [43:29](https://www.youtube.com/watch?v=LerAo-GGl8U&t=2609s) other: We deliberately removed or kind of did not implement these dangerous APIs or destructive APIs. But we might reconsider maybe adding this going forward.
- [43:53](https://www.youtube.com/watch?v=LerAo-GGl8U&t=2633s) coming-later: we would like to add it to admin API. So, it most likely will appear in in the future.

Presenters (as heard): Yuri.