tech
Should you build or buy software? This Wall Street firm has a new tool to decide.
Should companies build or buy software? An RBC analysis finds custom AI apps are often more expensive than SaaS.
TL;DR
- AI coding tools are making it easier for companies to create their own internal applications.
- RBC Capital Markets created a tool to compare the cost of buying software versus building an in-house alternative.
- The tool considers not only coding costs but also maintenance, security, repairs, and the reliability of custom tools.
- RBC's analysis indicates that building custom software is usually more expensive than buying it.
- The hidden cost of talent is significant; companies must decide if their AI experts should rebuild existing software or innovate.
- Building custom solutions may be feasible for simpler, less critical tools, but rarely for core systems like payroll or customer records.