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MCP stdio vs Remote Transports: Run It Locally or Host It?

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One of the most useful, and most confusing, properties of the Model Context Protocol is that the server code does not care how a client connects to it. A server exposes tools, resources, and prompts; the transport is a thin adapter underneath. Teams get stuck because the two transports in common use have almost nothing in common operationally: stdio is a child process with inherited credentials, Streamable HTTP is a hosted service with OAuth and uptime expectations. This article is the decision guide I wish existed before we shipped internal MCP servers both ways. Transport Connection State Ty

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