Build vs Buy
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Build vs Buy

Lately I picked-up the topic of "Build vs Buy" and engaged in thorough contemplation about the factors that potentially influence the decision-making process.

I have some initial and raw thoughts on "Build vs Buy" that I aim to extrapolate. To gain a broader perspective, I plan to gather insights from the wider community regarding the following points.

Additionally, by sharing these thoughts with a larger community, I hope to uncover any overlooked aspects.


Here are some thoughts comes to my mind when we want to make a choice or a decision to buy or build. Sometimes it's a tricky call to make a choice between building something in-house verses buying from outside and if mistaken then it would have long-term consequences. Wrong decision would cost you for wasted efforts, time and money!

Build vs Buy decision is heavily depends on broader criteria like :?specific needs, resources and long-term objectives.?Having said, we must weigh important factors (e.g. cost, customization, time to market, vendor lock-in, future proofing) based on criteria defined.?

Alright, let's look at the thoughts comes to my mind and I request you may pick up any one (or all) to expand upon and share your thoughts.??

1?? Are we building something that will potentially have positive & long term impact? Mostly around ROI perspective…?

  • ROI isn't just about cost, it's beyond that!
  • For ROI, state the ROI of a good things, state the impact of a bad things

2?? Building something in-house is also depends on staffing bandwidth, skills

3?? Building something in-house and side effects of "at that time" factor from technology perspective.

  • Technology changes rapidly hence something you build may get obsolete in matter of years,
  • Core vs Content (buying vs build - is mostly around core vs content of the company's business goal, whatever is core should be tried and build internally & for content - it's always good to go for buying - by keeping the overall cost in the forefront),
  • Maintenance! (OPEX),
  • Retiring and migration cost (handling technical debt),
  • Cost vs Benefit

4?? Leveraging open source to make build vs buy decisions

  • Savings on licensing and support cost,
  • Time to market (building something on your own cost you time),
  • Relief from vendor lock-in,
  • Security and transparency

5?? By building, are we digging a rabbit hole for us?

  • Can be and needs to be determined early by "Experimenting", "Introspecting" & then "Concluding" !!?
  • Possibly make use of some cyclic models of reflection to make a informed decision (e.g. Gibbs' Reflective Cycle)

6?? Are you building something that reduces downtime?

  • Business value vs Cost spend

7?? Buy something at reasonable cost and then build upon it?

  • Customize

8?? Platform engineering is next wave (in fact it's already there!) … how it will affect build vs buy decisions?

  • Platform engineering != "always building tools in-house or from the ground zero", but it can be enhancing/enriching tool you bought and get most from your investments

9?? How ChatGPT or AI in general will influence the buy vs build decisions??

?? Buy vs Build decisions are also influenced by size of company, team, security demands, TCO (cost) so it doesn't really matter if you build or buy, monitoring & controlling total cost of ownership (TCO) and thinking from vendor lock-in perspective is important aspect.?

  • Vendor lock-in from perspective of integration, staff trainings/skills development
  • Vendor locking is "okay" if I'm a small or early stage org however for enterprise that changes drastically..

1??1?? From whom to hear??Top-down or bottom-up?

  • To me, bottom-up makes sense. Eventually they are the ones who going to use the tool/platform on daily basis.?

Below question is more inclined to those "decision makers" who made such decisions several times in their career.

As an experienced decision maker, how your maturity level expanded over the time as far as making a wise decision w.r.t. buy vs build? (any lesson you learned would help future decision makers to learn from experts like you! )

Thank you for reading and certainly would greatly appreciate your valuable inputs and insights/feedback/participation.

Erick Brown

Sr. Manager, DevOps Engineering at GoTo

1 年

One aspect that you touched on which (in my mind at least) needs some elaboration is customization of purchased solutions. There are a handful of cases where purchased products are genuinely turn-key, but the vast majority of the time there is real engineering work that goes into getting the system (whatever it is) operational and integrated. The closer the feature set and design of the product is to a perfect fit for the application, the less work this will be (generally speaking). What that implies is that there is a threshold of effort in setup / customization where it actually takes *more* engineering work to buy than it does to build. And even before that tipping point, there's a temptation to exclude the engineering costs associated with buying from the cost comparison. The other thing to say about that engineering work associated with buying is that it's usually not a one-time cost - in virtually all cases, there will be ongoing work. And as a general rule, the extent of that work will be proportional to the amount of customization that was necessary for the initial setup.

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