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Review Build vs. Buy

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Definition

Build vs. buy is the decision whether to create and operate a capability internally, acquire it from a vendor, or combine purchased and internally developed components.
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Plain-Language Explanation

The choice compares more than initial price. It includes fit, speed, skills, data, control, integration, maintenance, risk, dependency, and the cost of changing direction later.
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Why It Matters

AI services can be quick to acquire while creating long-term data, vendor, and workflow dependencies. Internal builds can offer control while adding substantial operating responsibility.
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Example

A company compares a vendor document assistant with an internal retrieval application built on a model API and its own access controls.
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Common Misconception

Build and buy are not always binary choices. Most systems combine vendor infrastructure, open components, internal data, and custom workflow design.
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Remember It This Way

Choose which capabilities to own and which dependencies to accept.
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Related Terms

* [[larger-business-context|Larger Business Context]] * [[vendor-lock-in|Vendor Lock-In]] * [[total-cost-of-ownership|Total Cost of Ownership]] * [[due-diligence|Due Diligence]] * [[layered-sovereignty|Layered Sovereignty]]
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Sources

* [U.S. Government Accountability Office, *DOE and NNSA Project Management: Analysis of Alternatives Could Be Improved* (GAO-15-37)](https://www.gao.gov/products/gao-15-37) โ€” authoritative alternatives-analysis guidance on comparing operational effectiveness, costs, and risks.
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Learn More

* Compare options using [[total-cost-of-ownership|Total Cost of Ownership]] and [[layered-sovereignty|Layered Sovereignty]].
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