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Chamath Palihapitiya
@chamath
Social Capital 8090 God is in the details.
Joined April 2007
1.1K Following    2.4M Followers
Build-vs-Buy Math is Now Squarely in Build For the entirety of the SaaS wave, it was always cheaper and faster to buy software vs build what you needed. But the buying cycle continues to get more complicated. Gartner says the buying group for a complex enterprise software purchase is 6-10 people. 77% of buyers describe their most recent purchase as very complex or difficult.  That process exists for well known reasons: someone runs the security review, another negotiates the terms and another signs off on the risk.  But because of AI, the “build” side of that comparison has now moved materially. When a “buy” evaluation still takes two or three quarters just to clear procurement but the workflow you want can now be specified, built, tested and running in production inside that same window, the oldest argument for buying, that it was the faster path is, no longer true. We built Software Factory to help large enterprises take advantage of AI’s deflationary economics and make a build vs buy decision much more competitive than it has been historically. 

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