Each path has real costs
There's no free lunch. Building gives you control but requires sustained investment. Buying is faster but creates dependencies. Partnership balances both but requires coordination.
| Factor | Build | Buy | Partner |
|---|---|---|---|
| Time to value | 12-24 months | 1-3 months | 3-6 months |
| Upfront cost | $2-5M+ | $50K-500K | $200K-1M |
| Ongoing cost | $500K-2M/year | $100K-1M/year | Variable |
| Customization | Unlimited | Limited | High |
| Talent required | 10-25 FTEs | 2-5 FTEs | 5-10 FTEs |
| Vendor risk | None | High | Moderate |
| IP ownership | Full | None | Negotiated |
When each option makes sense
Recommended Approach by Scenario
The Real Question
Don't ask "should we build or buy?" Ask "what is our sustainable competitive advantage and where should we invest our best people?"
Build what differentiates you. Buy what doesn't. Partner when you need to move fast but want optionality.