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Why build it when you can buy it? Right? The decision is more involved that this. The real question is...

What is the shortest route to a sustainable, defensible revenue stream?

In the 80's IBM built a super quick computer out of pieces you could buy at Radio Shack. The ultimate solution! Why incur all that upfront manufacturing cost when you can assemble it out of existing parts? They learned the answer really quickly. The lower barriers of entry meant anyone could recreate the product. And so a million clones popped up using the same parts. For a decade Apple ate their lunch by investing in a proprietary platform(which a lot people said was madness using the exact reasoning on display in this article)

SaaS is great but you have to have some sort of moat for whatever you are building. Sometimes that moat can be as simple the idiosyncrasies of your over-engineered, prematurely optimized product. I had a hand in the development of one of the major VPS players during the 2010's. There were things we could do just because of the weird decisions people had made in the past. That translated directly to competitive advantage.



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