Decision guide

Build vs Buy vs Open Source

Should your team build this capability, buy it, or adopt open source?

Side by side

CriterionBuildBuy (SaaS / vendor)Open source (self-hosted)
Upfront costHigh (engineering time)Integration and procurementSetup and integration
Ongoing costMaintenance, on-call, features, securityLicence growth, vendor managementOperations, upgrades, patches
Control and fitFullLimited to the productHigh (can fork)
Lock-in / exit costLow (yours) but knowledge riskMedium to high; wrap itLow to medium
Time to valueSlowestFastestMedium

When to choose each

Build

Design and operate the capability in-house.

Choose when

  • It differentiates your product
  • No product fits your requirements
  • You can staff its maintenance for years

Avoid when

  • It's a commodity (auth, flags, email, observability)
  • Nobody will own it after version one

Buy (SaaS / vendor)

Use a commercial product, integrated behind an internal interface.

Choose when

  • Non-differentiating capability
  • You need it fast and reliably
  • Vendor meets security, data-location and SLA needs

Avoid when

  • Pricing at your scale is prohibitive
  • Data can't leave your environment
  • No export or exit path

Open source (self-hosted)

Run an open-source project yourself.

Choose when

  • You need control or self-hosting
  • A healthy project exists
  • You have operational capacity

Avoid when

  • You can't keep up with upgrades and security patches
  • The project is poorly maintained

Verdict

Build what differentiates you, buy what doesn't. Compare three-year total cost of ownership — including maintenance, on-call and opportunity cost — check security, data location and exit path, and prefer buy and wrap behind an internal interface. Record the decision and its assumptions in an ADR.

Learn more

Sources