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How to Use Build vs Buy Decision Engine

The Build vs Buy Decision Engine evaluates each infrastructure component on development cost, maintenance burden, opportunity cost, and managed service pricing to recommend build or buy per component.

By AI Biz Hub · AI Biz Hub Team
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Build vs Buy Decision Engine

Compare building infrastructure yourself versus buying managed services with per-component build/buy verdicts.

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What It Does

Use the calculator with intent

The Build vs Buy Decision Engine evaluates each infrastructure component on development cost, maintenance burden, opportunity cost, and managed service pricing to recommend build or buy per component.

Technical founders deciding which parts of their stack to build custom and which to outsource to managed services.

Interpreting Results

Compare annual build cost against annual buy cost per component, not just the upfront build hours. The recurring maintenance burden, valued at your hourly rate, is what usually tips commodity infrastructure toward buy. Reserve building for the component that is your actual differentiation; outsource the rest so your scarce hours go to the product, not to undifferentiated plumbing.

Input Steps

Field by field

  1. 1

    Set your hourly value

    Enter what an hour of your time is worth, ideally your billable rate or the value of an hour spent on product and customers instead. This is what turns build hours into a real dollar cost, so a higher hourly value pushes more components toward buy.

  2. 2

    List each component

    For each stack component (auth, database, payments, search), enter the hours to build it, the ongoing maintenance hours per month, and the managed-service monthly cost. Enable only the components you actually need to decide on.

  3. 3

    Be honest about maintenance

    Maintenance hours per month is the input founders most often understate. Self-built infrastructure carries patching, monitoring, and incident time forever, while a managed service absorbs it. Enter the realistic recurring burden, not the best case.

  4. 4

    Read per-component verdicts

    Read the annual build cost (build hours plus maintenance, valued at your rate) against the annual buy cost for each component, plus the overall verdict and annual savings. A component where building costs more than buying over a year is almost always a buy, especially early when your hours are worth more on product.

  5. 5

    Re-run as your time value changes

    Re-run when your hourly value rises (it usually does as the business grows) or when a managed service changes price. The build case weakens as your time becomes more valuable, so a component worth building at launch is often worth buying a year later.

Common Scenarios

Use realistic starting points

Buy commodity infrastructure

Hourly value

100

Auth: build / maintain / buy

40h / 4h-mo / 25

Database: build / maintain / buy

20h / 2h-mo / 25

At 100 per hour, 40 build hours plus 4 maintenance hours a month dwarfs a 25-per-month managed service. Watch how clearly auth and database come out as buy when your time is priced honestly.

Low hourly value flips the math

Hourly value

25

Component build hours

40

Managed service cost

50

When your time is cheap and the managed service is expensive, building can win on pure dollars. Watch whether the build verdict holds once you add the maintenance hours, which often erase the apparent saving.

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FAQ

Questions people ask next

The short answers readers usually want after the first pass.

Building is paid in your hours; buying is paid in dollars. The engine converts build and maintenance hours into dollars at your hourly value, so the more an hour of your time is worth, the more expensive building becomes relative to a fixed managed-service fee. A founder valuing time at 25 per hour may rationally build what a founder valuing time at 150 per hour should buy, even for the identical component.

Sources & References

Related Content

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Business planning estimates — not legal, tax, or accounting advice.