BI Trends

Build or Buy a BI Solution

By Logi Analytics
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Don’t take our word for it: find out what industry experts have to say on the decision to build or buy analytics.

The Bottom Line

Choose the route that best meets your requirements, takes the least time, and uses the fewest resources. “At its highest level, this decision process now is no different for BI than it has been for any other technology. If IT professionals think the ‘buy’ path provides all of the required capabilities, as well as being quicker, less costly, and less risky than a ‘build’ solution, they will take that route.” – Peter Chirlian, CEO of Armanta, Inc.

Cost Factors

TOTAL COST OF OWNERSHIP

The cost of buying is generally less than the cost of building and is easier to predict. A 2012 study on in-house IT projects by McKinsey and the University of Oxford found that, “on average, large IT projects run 45 percent over budget and 7 percent over time, while delivering 56 percent less value than predicted. Software projects run the highest risk of cost and schedule overruns.” “With third-party software, you know exactly what your cost is upfront.” – Business 2 Community “From my experience and observation, it is usually far cheaper and faster to buy than to build. After all, if a problem has been adequately solved in a commercial product, why solve it again?” – CIO

TIME TO MARKET

Buying usually gets you to market more quickly. “ISVs experienced a 27% faster time to market with embedded BI than enterprises did,” according to a 2016 study by Aberdeen Research Group.

PRODUCT MAINTENANCE AND SUPPORT

Buying requires fewer human resources. “Contrary to popular belief that building software in-house will pay for itself over time, the majority of software costs go toward maintenance, not initial development—requiring interminable recurring costs and a dedicated support team.” – Business 2 Community

Logi Analytics Benefits

THE STATS FROM ESG

By embedding analytics from Logi Analytics, software teams can deliver users a robust visualization and reporting experience, while keeping their development focused on the core application. When compared to the alternatives, including DIY with UI components, traditional BI platforms, or data discovery applications, application teams can save on the skills, time, and costs required to build visuals or reports, accelerating their time to market.

ESG’s economic validation with Logi’s existing customers revealed that Logi has helped commercial and enterprise organizations provide comprehensive analytics capabilities into their applications while shortening development time and streamlining and simplifying product customization and maintenance efforts compared to attempting to build the capabilities into their products using open source or BI products. ESG found these benefits in the following categories:

  • Faster time to market―Organizations were able to standardize workflows, develop and maintain products in less time, and recognize revenue earlier.
  • Improved product capabilities―Logi provided developers greater flexibility in product design, increased capabilities, and greater customization, leading to improved end-user experience and benefits.
  • Cost savings―Cost savings were achieved through reduction of required up-front investment, reduced cost of product development and support, and fair and predictable licensing costs.

Conclusion

Don’t decide whether to build or buy BI before fully evaluating the embedded BI market. “Given the breadth, depth, and user-friendly nature of analytical capabilities on the market today, enterprises seeking embedded BI should consider the technology that is available for purchase before attempting to build out their own analytics features.” – Business 2 Community

Originally published July 4, 2020; updated on January 4th, 2022

About the Author

Logi Analytics is the leader in embedded analytics. We help team put business intelligence at the core of their organizations and products.