Build Vs. Buy
All Things Product with Teresa and Petra
00:00
AI's impact on the decision
Teresa explains AI lowers prototyping costs but doesn't remove tradeoffs in make-or-buy choices.
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Transcript
Transcript
Episode notes
What this episode covers: Why build vs. buy keeps coming up
- It shows up in every product org, at every stage
- AI makes building feel easier — but doesn’t eliminate the real tradeoffs
The classic rule of thumb (and its limits)
- If something isn’t core to your value stream, don’t build it
- Even when it is core, vendors may still be better positioned (payments, invoicing, infrastructure)
Teresa’s two contrasting examples
- Why she moved from WordPress to Ghost instead of building her own blog platform
- Why she did build her own task management system — despite plenty of existing tools
The role of data ownership
- When the underlying data becomes the real product
- How task management, notes, and workflows become deeply personal and idiosyncratic
- Why owning and controlling data changes the build vs. buy equation
How AI is changing the decision
- Cheaper prototyping and “vibe coding” lower the cost of building
- Smaller, more targeted tools become viable alternatives to big SaaS platforms
- Pressure on vendors to improve data portability
Vendor lock-in and data portability
- Why exports aren’t always enough
- What to look for when evaluating tools like CRMs or course platforms
- When buying still makes sense — and when it doesn’t
Build vs. buy as a discovery problem
- Treating options as assumptions to test
- Feasibility testing on the build side
- Actually trialing vendors instead of trusting marketing claims
A caution on complexity
- Why “we can build anything” isn’t the same as “we should build this”
- How long-lived products accumulate hidden complexity over time
- Being honest about engineering capabilities and maintenance costs
Key takeaways
- Build vs. buy isn’t just about speed or cost — it’s about core value, data ownership, and long-term responsibility
- AI lowers the barrier to building, but doesn’t erase complexity
- Treat build vs. buy decisions like any other discovery effort: test assumptions, prototype, and validate before committing
- Ask not just can we build it, but should we own it?
Resources & Links:
- Follow Teresa Torres: https://ProductTalk.org
- Follow Petra Wille: https://Petra-Wille.com
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