Skip to main content

Build versus buy analysis in System Architecture

Often, a "buy before build" approach is considered while defining the architecture of a system. However, in some cases, building a solution can be important. Both approaches have their advantages and disadvantages.

Factors to Consider in a Build vs. Buy Decision

A decision analysis method, such as Decision Analysis and Resolution (DAR), can help evaluate build versus buy options. The factors considered depend on an organization's requirements, strategy, vision, and specific context.

Key Factors for Analysis

  • Total cost of ownership (TCO): Build vs. buy cost over the software/system lifecycle

  • Return on investment (ROI)

  • Budget constraints

  • Time to market

  • Keeping pace with technology changes

  • Maintenance and support considerations (cost, resources, reliability, risks)

  • Availability of a Commercial Off-The-Shelf (COTS) solution (pros and cons)

  • Utilization of resources

  • Number of skilled resources available in the organization

  • Technology expertise within the organization (can internal resources be reskilled?)

  • Development platform compatibility with available resources

COTS Vendor Selection Criteria

When considering a COTS solution, evaluating vendors against key criteria is crucial:

  • Functionality fit: Does the COTS fulfill all business requirements?

  • Customization:

    • Can it be customized?

    • To what extent can it be modified?

  • Upgrades & Enhancements:

    • How frequently does the vendor provide updates?

    • What are the costs associated with upgrades, enhancements, and support?

  • Product Quality & Vendor Reputation:

    • Has the vendor delivered quality products in the past?

    • References in the market (who else uses it, feedback from existing customers)

  • Business Process Impact:

    • Will it require changes in business processes?

    • Will users need specific training?

    • Ease of adoption for users (interface, usability, learning curve)

Advantages and Disadvantages

Building a Custom Solution

Advantages

  • Tailored to specific business needs

  • Lower initial investment

  • Can be supported internally

  • Quick enhancements and fixes

  • Full control over updates and enhancements

  • Competitive advantage through custom development

  • Easier integration with existing systems

Disadvantages

  • High cost of changes

  • Higher overall cost (design, build, test, change, etc.)

  • Risk of knowledge loss if key resources leave

  • Resource management challenges

  • Higher initial investment in development and testing

  • If IT is not the company’s core business, managing software can be difficult

Buying a COTS Solution

Advantages

  • Ready-to-use functionality

  • Faster time to market

  • Cost benefits due to economies of scale

  • IT expertise from dedicated vendors

  • Reduced dependency on internal resources for support

  • Cost-effective changes and enhancements due to a larger customer base

  • Follows industry best practices and standards

  • Competitive market drives lower costs and better support

Disadvantages

  • May lack specific functionality or require process adjustments

  • Higher initial investment

  • Reinvestment required as versions become outdated

  • Licensing models may not align with organizational needs

Comments

Post a Comment

Popular posts from this blog

Virtual environments in python

 Creating virtual environments is essential for isolating dependencies and ensuring consistency across different projects. Here are the main methods and tools available, along with their pros, cons, and recommendations : 1. venv (Built-in Python Virtual Environment) Overview: venv is a lightweight virtual environment module included in Python (since Python 3.3). It allows you to create isolated environments without additional dependencies. How to Use: python -m venv myenv source myenv/bin/activate # On macOS/Linux myenv\Scripts\activate # On Windows Pros: ✅ Built-in – No need to install anything extra. ✅ Lightweight – Minimal overhead compared to other tools. ✅ Works across all platforms . ✅ Good for simple projects . Cons: ❌ No dependency management – You still need pip and requirements.txt . ❌ Not as feature-rich as other tools . ❌ No package isolation per project directory (requires manual activation). Recommendation: Use venv if you need a simple, lightweight solut...
Post a Comment
Read more

Building a Simple Text Generator: A Hands-on Introduction

Introduction Text generation is one of the most exciting applications of Natural Language Processing (NLP) . From autocorrect and chatbots to AI-generated stories and news articles , text generation models help machines produce human-like text. In this blog post, we’ll introduce a simple yet effective text generation method using Markov Chains . Unlike deep learning models like GPT, this approach doesn’t require complex neural networks—it relies on probability-based word transitions to create text. We’ll walk through: ✅ The concept of Markov Chains and how they apply to text generation. ✅ A step-by-step implementation , fetching Wikipedia text and training a basic text generator. ✅ Example outputs and future improvements. The Concept of Markov Chains in Text Generation A Markov Chain is a probabilistic model that predicts future states (or words) based only on the current state (or word), rather than the full sentence history. How it works in text generation: 1️⃣ We analyze a gi...
Post a Comment
Read more

Mastering Trade-Off Analysis in System Architecture: A Strategic Guide for Architects

 In system architecture and design, balancing conflicting system qualities is both an art and a science. Trade-off analysis is a strategic evaluation process that enables architects to make informed decisions that align with business goals and technical constraints. By prioritizing essential system attributes while acknowledging inevitable compromises, architects can craft resilient and efficient solutions. This enhanced guide provides actionable insights and recommendations for architects aiming to master trade-off analysis for impactful architectural decisions. 1. Understanding Trade-Off Analysis Trade-off analysis involves identifying and evaluating the conflicting requirements and design decisions within a system. Architects must balance critical aspects like performance, scalability, cost, security, and maintainability. Since no system can be optimized for every quality simultaneously, prioritization based on project goals is essential. Actionable Insights: Define key quality ...
Post a Comment
Read more