Buy or Build - A Software Development Decision

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Buy or Build ?

Some would call this "Reinvent the Wheel" versus "Buy a Proven Solution". To remain competitive, companies must stay on the cutting edge of evolving technologies and changing business needs. This is especially true with a web application solution. When looking at the "Buy or Build" items, you should be aware that in many situations there is usually always an option to buy. However, when you do buy, your business model should not be compromised because of the limitations of purchased software. When looking for web application solutions (or any type of software solutions) a due diligence search should be done to analyze all of the options PRIOR to proceeding to a "Build" decision. If you find yourself sitting with a consulting company that does not recognize this, then you should carefully review there interests in their relationship with your company. Sometimes, the business model will be unique, and this uniqueness offers a significant competitive advantage. Many times, off the shelf software cannot be applied to this type of business model. A search should still be done to potential discover any areas that might be offered by a commercial product. When looking at the "Buy or Build" decision, there are a few factors to keep in mind. These include: Time to Market Cost Savings Core Competencies Custom Fit

Time to Market	Building your own web application solution always means longer time to market. To that end, time-to-market is often the first and most important factor that a company considers when making the "Buy or Build" decision. If time-to-market is a concern in your development process (and it most likely is) then purchasing an existing solution will yield results faster than building one from scratch. Even with this consideration, it could be that a purchased solution just isn't viable. In those cases, time-to-market needs to be addressed as part of the build development strategy and plan.

Cost Savings	What are the costs associated with buying versus building? Does the benefit of building justify the cost, especially when a mature solution might be available? When looking at raw costs, the customization and integration costs need to be included. On the surface it sometimes appears that a "Buy" decision is much cheaper. However, these costs could be substantial once the customization and integration estimates are factored into the purchase.

Core Competencies	The choice to build often entails more 'building' than one may realize. Your employees/staff will need to be trained in the IT core competencies for the application. This core competency in staffing will need to be maintained through development AND through the life of the product. When you buy off the shelf you may still need a subset of these competencies (to deal with custom and integration development support). On the other hand, with a build decision, having these core competencies "in house" provides you with leverage to support and alter the software solution as your business model evolves.

Custom Fit	A custom fit is sometimes required to recognize the competitive advantage inherent within a business model. The custom fit (build) provides unlimited flexibility. The non custom fit (buy) provides a narrower level of flexibility at the lower cost.

Software Experts .NET works with customers/partners to assist them with this decision. We recognize the solution should be the one that best fits the needs of our customer/partners. A relatively new technical architecture (service oriented architecture) is easing the cost and time-to-market issues inherent within a "Build" decision. Pre-built services (components) can be incorporated within "Build" options. Software Experts .NET currently maintains (and is evolving) an inventory of critical services to assist in quantifying and bulding solutions.