One thing to pay close attention to when making a build v.s. buy decision is the impact that billing models will have on your usage of a tool. Take logging for example. If you buy a log aggregation platform like Splunk Cloud or Loggly the pricing is likely based on the quantity of data you ingest per day. This can set up a weird incentive. If you are already close to the limit of your plan, you'll find that engineers…
I love this comment because it articulates a dynamic that I think is often overlooked much better than I could. I might even go a step farther and suggest that anything that is core to your business flywheel should be built and not bought (in general). Mostly because you don't want pricing to act as a disincentive to exercising the flywheel.
The mechanisms by which your product is marketed, sold and distributed are core to your business flywheel. For example, if you’re a B2B Saas, distribution is often way more important than the product itself.
So by the “core to our flywheel” standard you need to build your own email marketing software, your own version of salesforce CRM, your own analytics tool for triggering marketing funnels, etc.
That’s just hilarious. As someone who runs a business, I wouldn’t spend a single minute of engineering resources on anything that we don’t sell directly to a customer.
I’d go even further and say if you have less than 5000 employees, ALWAYS buy. Never build.