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Day 50

Skills vs MCP vs CLI — When to Use What

Claude Code Decision Framework / 2026

Skills vs MCP vs CLI
When to use what

The definitive decision framework for Claude Code in 2026. Pick the right tool every time — no guessing, no wasted tokens.

.claude/skills/
markdown + scripts
mcp.json
external protocol
$ terminal
standard unix

Side-by-side comparison

Green bars mark the winner for each dimension

What it is
Markdown instructions + scripts in .claude/skills/
External servers exposing tools via protocol
Standard command-line programs
Token cost
Low — loaded once into context
High — schema sent every call
Lowest — one bash command
Best for
Complex workflows, multi-step processes, domain knowledge
External service integration (APIs with auth)
Simple operations, data processing
Setup
Drop folder in .claude/skills/
Configure mcp.json, run server
brew install, done
Trust level
Lowest — user-defined, full control
Medium — plugin model
Highest — built-in bash
Composability
Chains via Claude reasoning
Isolated per server
Unix pipes — any with any
When to pick
Need Claude to follow a process
Need real-time API connection
Need fast, cheap tool access
Example
infographic-maker, cold-dance
Attio CRM, Apollo enrichment
gh, jq, ffmpeg

Decision tree

Three questions. One answer.

Need domain knowledge or multi-step process?
Skill
Need live API connection with auth?
MCP Server
Need fast, cheap tool access?
CLI Tool

When to pick each

Practical signals that guide your choice

SkillsSkills
  • You want Claude to follow a defined process
  • Workflow spans multiple steps or files
  • You need domain-specific knowledge injected
  • Fast iteration — just edit a markdown file
  • No server infrastructure required
  • Example: infographic-maker, deploy workflows
MCPMCP Servers
  • Real-time API calls with OAuth or secrets
  • Structured tool schema matters to Claude
  • Third-party service integration (CRM, billing)
  • Multiple agents share the same server
  • Protocol-level reliability needed
  • Example: Attio CRM, Apollo enrichment
CLICLI Tools
  • Single-command data operation
  • Unix piping or stream processing
  • Token budget is tight — bash is cheapest
  • Already installed globally on the machine
  • No auth or state needed
  • Example: gh, jq, ffmpeg

Skills are maybe a bigger deal than MCP.

Simon Willison — simonwillison.net / Confluent 132K video

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Day 50 · AY Automate · Claude Code Series · ayautomate.com