The Hidden Cost of Building Business Infrastructure Yourself

Building business infrastructure in-house costs $1M+ and 18 months. Learn the hidden costs of DIY: data engineering, identity resolution, ongoing maintenance, and opportunity cost.

The Hidden Cost of Building Business Infrastructure Yourself
Image: Unsplash

Key Takeaways

  • Coding is the easy part; data engineering, identity resolution, and ongoing maintenance are the hard parts.
  • The opportunity cost of your engineering team building infrastructure instead of product often exceeds $250K/year.
  • DIY infrastructure leads to permanent maintenance burdens and accumulated technical debt.

'We could build this ourselves.' You're technical. You understand systems. You look at $30K/year for mediocre platforms and think 'I could build something better in 3-4 months.' This calculation is right about the prototype. It's wrong about production infrastructure.

What You're Actually Building

The hard parts:

  • Data Engineering: Building infrastructure to maintain integrations as APIs change.
  • Identity Resolution: Tracking the same person across devices and sessions.
  • Attribution Modeling: Data science work, not just an algorithm.
  • Maintenance: Security updates, compliance, performance optimization.

The Real Costs Nobody Mentions

Opportunity Cost. Your engineering team building infrastructure means they're not building product features that generate revenue. Expertise Gap. You probably don't have experts in data engineering and attribution modeling in-house. Long-Term Commitment. Once you build it, you own it forever.

"The real question isn't 'can we build this ourselves?' (probably yes). It's 'should we build this ourselves?' (probably no)."

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