Back to Blog
Strategystrategybuild-vs-buyplatform

AI Platform: Build vs Buy - Making the Right Decision

A framework for deciding whether to build custom AI infrastructure or leverage a platform like Tesan AI.

J
Jayakumar S
Founder & CEO
December 26, 20249 min read

Every organization considering AI faces a fundamental question: should we build our own infrastructure or buy a platform? Here's a framework to help you decide.

The Build Argument

Advantages: - Complete customization - No vendor lock-in - Full control over roadmap - Potentially lower long-term costs - Intellectual property ownership

Hidden Costs: - Team building (6-12 months) - Infrastructure setup (3-6 months) - Ongoing maintenance (2-3 FTEs) - Security and compliance - Keeping up with AI advances

The Buy Argument

Advantages: - Faster time to value - Proven, tested infrastructure - Continuous improvements - Expert support - Lower upfront investment

Considerations: - Ongoing subscription costs - Vendor dependency - Customization limits - Data security concerns

Decision Framework

#

1. Core Competency Assessment

Build if: - AI is your core product - You have unique requirements no platform addresses - You have a strong AI engineering team

Buy if: - AI enables your core business (but isn't the core) - Your requirements are largely standard - You lack specialized AI talent

#

2. Time-to-Value Analysis

Build Timeline: PhaseDuration |-------|----------| Team Hiring3-6 months Architecture2-3 months Development6-12 months Testing2-3 months Total13-24 months

Buy Timeline: PhaseDuration |-------|----------| Evaluation1-2 months Integration1-2 months Pilot1-2 months Total3-6 months

#

3. Total Cost of Ownership

Build Costs (3-Year): - Engineering team: $1.5M - $3M - Infrastructure: $200K - $500K - Maintenance: $300K - $600K - Total: $2M - $4.1M

Buy Costs (3-Year): - Platform subscription: $300K - $600K - Integration: $50K - $100K - Training: $20K - $50K - Total: $370K - $750K

#

4. Risk Assessment

Build Risks: - Technical debt accumulation - Key person dependency - Falling behind state-of-art - Security vulnerabilities

Buy Risks: - Vendor discontinuation - Price increases - Feature gaps - Data concerns

Our Recommendation

For most organizations, buy first, build selectively later:

1. Start with a platform to validate use cases quickly 2. Identify areas requiring customization 3. Build custom components that integrate with the platform 4. Consider full build only if you outgrow platform capabilities

Why Tesan AI

We've designed our platform to minimize buy-side concerns:

- No lock-in: Export models in standard formats (ONNX, TFLite) - Extensible: Custom code integration points - Transparent pricing: No surprise costs - Data security: On-premise options, SOC 2 compliance

Conclusion

The build vs buy decision isn't binary. The best approach often combines platform capabilities with selective custom development. Focus your engineering resources on what makes you unique.

Ready to explore? [Request a demo](/demo) and see how Tesan AI can accelerate your AI journey.

Share this article: