The Art of CTO Build vs Buy Matrix is a structured decision framework that evaluates make-or-buy decisions across strategic fit, cost, time-to-market, technical complexity, vendor risk, and maintenance capacity using weighted criteria analysis.
Frequently Asked Questions
How do you decide whether to build or buy software?
The build vs. buy decision hinges on four factors: strategic differentiation (does this capability provide competitive advantage), total cost of ownership (build costs including ongoing maintenance vs. vendor fees over 3-5 years), time-to-market (can you afford the development timeline), and organizational capability (do you have the expertise to build and maintain it). Build when the capability is core to your competitive advantage; buy when it is commoditized and well-served by existing vendors.
What is the total cost of ownership for build vs buy?
TCO for building includes initial development (engineering salaries, opportunity cost), ongoing maintenance (typically 15-20% of build cost annually), infrastructure, security patching, and feature development. TCO for buying includes license fees, integration costs, customization, training, and vendor lock-in risk. Most organizations underestimate build TCO by 2-3x because they overlook maintenance, on-call burden, documentation, and the cost of keeping the solution current over its 5-10 year lifespan.