Build vs buy
The choice between paying for a ready-made product and building your own software, including what each costs over time.
Buying costs a subscription that grows with users; building costs the build and then maintenance, hosting and someone who knows the code. AI tools made the first version of a custom app much cheaper, which makes building tempting, but the later costs did not disappear. Some reasons to build are not about money: data location, integrations, a process that is your advantage.
Related terms
- MVP (minimum viable product): The smallest version of a product that tests whether people want it enough to use or pay.
- Reference class forecasting: Estimating from what similar finished projects actually cost, instead of from your own feature list.
- Time and materials (T&M): Paying for the hours actually worked; scope can change, cost and timeline move with it.
