Build vs. buy, after LLMs made building look cheap

In the context of the rise of Large Language Models (LLMs), the article discusses the evolving dynamics of the "build versus buy" decision-making process for infrastructure tools. While LLMs have significantly reduced the cost and time needed to develop initial prototypes of tools, they have not altered the more substantial long-term costs associated with running and maintaining these tools, which often involve managing edge cases, operational duties, and failure modes. The article emphasizes that while LLMs can efficiently handle the initial 80% of tool development, the remaining 20%—which involves ongoing maintenance and operational challenges—continues to be the most expensive and resource-intensive part. It offers a framework with four key questions to help decide whether to build or buy: assessing if a tool is differentiating, if it runs once or forever, its potential blast radius when it fails, and who will own it in the future. Ultimately, it suggests building tools that are unique to the business and have low maintenance needs, while buying those that are generic and require continuous operation and upkeep, as the real costs of ownership extend far beyond the initial prototype.

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