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Vestval

Comparison

Build vs Buy

The build vs buy decision is often made on ideology rather than analysis. Here is a framework that produces defensible decisions.

BuildvsBuy

Side by side

Build vs Buy, on the dimensions that matter.

  • Time to value

    Build
    Months to years
    Buy
    Weeks to months
  • Upfront cost

    Build
    High
    Buy
    Lower (subscription)
  • Total cost of ownership

    Build
    Depends on team stability
    Buy
    Predictable
  • Differentiation

    Build
    Full control
    Buy
    Constrained to platform
  • Risk

    Build
    Execution + maintenance
    Buy
    Vendor + fit
  • Fit

    Build
    Exactly your process
    Buy
    80% fit is typical

Our honest verdict

Buy the commodity; build the differentiator. If a category has mature productized options and your process is not a competitive advantage, buy. Build only when the software itself is the moat.

Where teams get it wrong

Building undifferentiated ERP, HRMS or CRM is almost always a mistake. Buying differentiated core product where the software is the moat is usually a mistake.

FAQ

Frequently asked questions

  • This is the modern default. Buy a productized ERP/HRMS/LMS core; build extensions in a plugin model for genuine differentiators.