Cost to Build a Data Streaming Platform: TCO, Risks, and Alternatives

Organizations considering a data streaming platform (DSP) face a strategic choice between building an in-house solution or opting for a managed service, with significant financial and operational implications. While building a DSP internally using open-source tools like Apache Kafka® might appear cost-effective, the total cost of ownership (TCO) often surpasses that of managed solutions due to hidden expenses related to infrastructure, skilled personnel, and ongoing maintenance. Key cost drivers include the need for extensive custom development, governance tools, and around-the-clock management by specialized teams, which can detract from innovation and lead to business risks such as downtime and security breaches. Conversely, managed DSP services offer a lower, usage-based cost model, eliminating operational burdens and allowing companies to focus on core business objectives. For most organizations, especially those not centered on large-scale distributed systems, a managed DSP provides a more reliable, scalable, and cost-effective solution, aligning expenditures with business value and reducing the risk of operational complexities.