meaningful tech
meaningful tech Podcast
Build vs. Buy Software: Why the Balance Has Finally Tipped
0:00
-10:36

Build vs. Buy Software: Why the Balance Has Finally Tipped

Especially for SMEs whose only choice was to buy what was available and try and fit their business to that software. Not any more.

The Legacy of “Buy First” Thinking

Not long ago, building your own business software was unthinkable for most mid-market companies. It was slow, risky, and prohibitively expensive.

So businesses turned to packaged software—ERP systems, CRM platforms, and later, SaaS products. These promised faster implementation, lower upfront investment, and "industry best practices" baked right in.

But over the years, the cracks started to show:

  • Companies paid for platforms that did everything—yet didn’t do exactly what they needed.

  • They used 30–40% of the features—and paid 100% of the cost.

  • They twisted their processes to fit “best practices” that weren’t best for them.

  • They carried the burden of change management not to innovate, but to adapt to software.

Buying software became less about solving problems and more about managing limitations.

The Best Practices that are not for you

Software vendors love to sell “best practices.” But they’re usually just average practices designed to serve the widest market.

They’re built to scale across thousands of customers—not tailored to your business. Adopting them risks diluting what makes your business unique.

You wouldn’t wear a suit off the rack and then change your body to fit it. Yet that’s how most businesses adopt packaged software.

The software (read: API) Supply Chain

The API economy changed everything.

Instead of building everything from scratch, you could now stitch together best-in-class APIs and services:

  • Stripe for payments

  • SendGrid/Postmark for transactional emails

  • Twilio for messaging

  • Auth0 for authentication

  • ShipEngine/EasyPost for logistics

  • Plaid for financial data

  • Segment/RudderStack for customer data

You could now buy building blocks and build unique systems. It marked the first true "Build + Buy" era.

Today: The Game Has Changed Again

Thanks to modern AI dev tools and infrastructure, building your own business operating system now costs less—or the same—as buying and customizing packaged software.

And the outcomes? Entirely different:

  • You own your roadmap

  • You build around your business

  • No vendor lock-in

  • You scale on your terms

  • Your tech becomes a competitive edge

How AI Is Accelerating Custom Software Development

Tools like Tiram.ai, Cursor, Claude, Copilot, and others have drastically accelerated the speed and reduced the cost of development.

They:

  • Scaffold working prototypes from prompts

  • Auto-generate boilerplate code

  • Write tests and documentation

  • Suggest optimizations in real-time

The result? Custom business software is now practical, fast, and affordable.

But Strategy Still Matters

AI can help you build faster and cheaper. But it won't tell you:

  • What to build

  • Why you're building it

  • How to maintain it over time

That still requires leadership, intentional design, and a strategic roadmap.

Build fast—but build smart.

Our Guiding Principle: Build Your Differentiators, Buy the Rest

Build what makes you unique:

  • Custom workflows

  • Customer experience layers

  • Proprietary data flows

Buy what is standardized:

  • Payments

  • Messaging

  • Authentication

  • Infrastructure

Use APIs and SaaS platforms as accelerators—not anchors.

Build to Empower, Not Just Operate

Most companies succeed despite their software—not because of it.

Why? Because they shape their business to fit their tools.

But when you build around your processes:

  • Teams move faster

  • Customers get better experiences

  • You remove friction instead of creating it

You stop working around your tech. You start building with it.

Conclusion: It's Not Build vs. Buy. It's Build and Buy Smartly.

The real opportunity today isn’t choosing between building or buying. It’s:

  • Knowing what to build

  • Knowing what to buy

  • And owning your system’s future

You don’t need to settle for off-the-shelf software that sort-of-fits. You can build what your business really needs—faster than ever.

Own your differentiators. Integrate the rest. And scale with confidence.

Discussion about this episode