UK Dynamics 365 & PowerApps partner

Should you build or buy your business software?

Building your own software gives you total flexibility, but it costs time and brings complexity. Buying is faster, although it can feel restrictive. For most businesses, a highly configurable platform from a Microsoft partner is the sweet spot, and genuine build cases are rare.

In this video, Mark’s advice is to be realistic about how unique your business really is. Configurable, partner-based platforms from big vendors such as Microsoft usually cover what you need, and developments can fill any gaps that are left. A custom build also leaves you reliant on a smaller supplier, which is worth weighing up before you commit.

That said, building can still suit you if you’ve always built your own software and have a skilled team to support it. Otherwise, the usual route is to buy and configure, then analyse your options properly before you decide.

Quick takeaways

  • Building gives maximum flexibility, but costs more time and complexity. Buying is available immediately but may be less flexible.
  • Most businesses are less unique than they think. With configurable partner-based systems, building from scratch is now an edge case.
  • Configurable platforms can be extended. When you reach the limits of configuration, you can add developments on top.
  • Custom software ties you to its builder. A platform from a major vendor can be picked up by many other consultancies and individuals.
  • Building from scratch means starting with everything. That includes the security model, data model, front end, back end and requirements.
  • Building suits teams that always build and have the skills to do it. That isn’t most businesses.
  • Buy plus configurability is a very strong option today.

Build vs buy software: the trade-off

Build it yourself and you get the ultimate flexibility. The price is usually complexity and a longer timeframe.

Buy something that’s already built and it’s available immediately. But it may lack some flexibility.

So it isn’t a black and white decision. You do need to weigh up your options carefully.

Do you really need to build your own system?

Let’s focus on systems here. If you’re looking at partner-based systems that you can configure quite heavily, the need to build your own is now a very, very edge case. Most businesses don’t fall into it.

Be honest with yourself. It’s unlikely your business is so different from everyone else’s that you need to build from scratch.

Configurable platforms give you something to build on

These partner systems are highly configurable. And when you reach the limits of configuration, you can add developments on top. You’re being handed a platform rather than a finished system.

That platform draws on significant global experience in the Microsoft space. It reflects how businesses work across a huge customer base, and the typical functions they need to perform. If you want to see what that looks like in practice, our Dynamics 365 services page is a starting point, and our Live and Learn case study shows a single system built in Dynamics 365.

Buying and configuring is usually the quicker route

Buying in and configuring is often a very quick way to get where you need to be. Compare that with a custom software development project:

The risks of custom software

With custom software you’re beholden to the company that built it, often a smaller one. They should be using commonly supported technology underneath these days. But the finished product is still unique to them.

A partner-based system is different. The platform belongs to a big company such as Microsoft. So plenty of other consultancies and individuals can understand it and support you if you need help later.

What building from scratch involves

Buying gives you speed but can limit flexibility, unless the platform is highly configurable.

Building gives you the ultimate flexibility. But you’re starting from the ground up:

  • Security model
  • Data model
  • Front end
  • Back end
  • All the requirements

That’s a big timeframe and a big level of complexity to plan for.

When building your own can make sense

It depends on your starting point. If you’ve always built your own software and you have a relevant, skilled team, building might be the preferred path.

That isn’t the case in most scenarios.

How to decide on build vs buy software

  1. Be honest about how unique your business really is.
  2. Check how far the platform can be configured, and whether developments are possible beyond that.
  3. Ask who else could support the system if your supplier disappeared.
  4. Look at your starting point. Do you have a skilled team that builds?

Buy plus configurability is a very strong option nowadays. So how unique is your business, really?

Build vs buy software: at a glance

Build it yourselfBuy and configure (partner-based platform)
SpeedLonger timeframe. You start from the ground up.Available immediately. Buying and configuring is often a very quick route compared with a custom development project.
FlexibilityThe ultimate level of flexibility.May lack some flexibility, unless the platform is highly configurable. When you reach the limits of configuration, you can add developments on top.
ComplexityHigh. You have to plan for the security model, data model, front end, back end and all the requirements.You aren’t starting from the ground up, because the platform already exists. You configure it to fit rather than creating the security model, data model, front end and back end yourself.
Supplier dependencyYou’re beholden to the company that built it, often a smaller one. The underlying technology should be commonly supported, but the finished system is unique to them.The platform belongs to a big company such as Microsoft. Plenty of other consultancies and individuals can understand it and support you later.
Starting pointCan be the preferred path if you’ve always built and have a relevant, skilled team.Suits most scenarios, because most businesses don’t have that skilled build team.

Frequently asked questions

Should I build or buy business software?

For most businesses, buying and configuring is the stronger option. Highly configurable partner-based platforms are quick to start with and can be extended with developments. Building from scratch only tends to make sense if you have always built your own software and have a skilled team to do it.

What is the difference between building and buying software?

Building means creating a system from the ground up, including the security model, data model, front end, back end and requirements. You get maximum flexibility, but it takes longer and is more complex. Buying means using something already built. It’s available immediately, though it may be less flexible unless it’s highly configurable.

Is custom software better than off-the-shelf software?

Not necessarily. Custom software gives you the ultimate flexibility, but with a longer timeframe and more complexity. A highly configurable platform can be quicker to get working, and developments can cover gaps. Whether custom is “better” depends on how unique your processes are and the skills you have.

What are the risks of custom software for a small business?

The main risk is dependence on the company that built it. Even if it uses commonly supported technology, the finished system is unique to them. A platform from a major vendor such as Microsoft can be supported by many other consultancies and individuals.

Can a configurable platform be extended if it doesn’t fit my processes?

Yes. Configurable partner-based platforms can usually be shaped a lot through configuration. When you reach the limits, you can add developments on top. That’s why the need to build a system from scratch is now an edge case for most businesses.

What does building software from scratch involve?

You start with everything: the security model, data model, front end, back end and all the requirements. That means a large timeframe and a high level of complexity. It’s worth planning for this honestly before choosing a custom build over a configurable system.

When does building your own system make sense?

Building can be the preferred path if you have always built your own software and have a relevant, skilled team. That isn’t the case for most businesses. If your processes are not genuinely unusual, buying and configuring is likely to get you there faster.

About Mark Pullar

Mark Pullar is the founder of All My Systems, a Microsoft Dynamics 365 consultancy based in Hebden Bridge, West Yorkshire. He has 25 years’ experience in IT and senior management, holds an MSc in Information Systems Management, and is a Microsoft Certified Professional in Dynamics 365. Mark set up All My Systems in 2014 to bring proper business systems to small and medium sized companies, and he shares practical lessons on productivity and running a business along the way. Read more about Mark’s story and how All My Systems began.

Further reading

Get the latest articles sent to your inbox

Never more than weekly. No spam, ever.