Enterprise Application Development: Build vs Buy for Houston Companies

Commoditized Functions

Some business functions are standard across industries:

• Basic accounting and payroll
• Email and communication
• Standard CRM for small sales teams
• Project management basics

Buy Signals

• Your processes match industry standards
• Off-the-shelf solution requires minimal customization (<20%)
• Total cost of ownership is clearly lower
• Vendor is stable and well-supported
• No competitive advantage from custom solution

Unique Business Processes

Houston businesses often have processes that off-the-shelf software can't accommodate:

• Industry-specific workflows (energy, healthcare, logistics)
• Proprietary methodologies that drive competitive advantage
• Complex integrations with legacy systems
• Unique compliance or regulatory requirements

Build Signals

• Off-the-shelf requires 30%+ customization
• Software is core to competitive differentiation
• Per-user licensing costs exceed development investment over 3-5 years
• You need capabilities that don't exist in the market
• Integration requirements are complex

Houston enterprises often underestimate off-the-shelf costs:

Licensing

Enterprise SaaS pricing scales with users. A 200-person Houston company paying $50/user/month spends $120,000 annually—$600,000 over five years.

Customization

Most enterprise software requires customization. These projects often exceed initial estimates by 50-200%.

Integration

Connecting purchased software to existing systems requires API development and often custom middleware.

Process Adaptation

When software doesn't fit your processes, you adapt processes to software. This hidden cost affects efficiency and employee satisfaction.

Initial Development

Custom full-stack development requires upfront investment but eliminates ongoing licensing.

Ongoing Maintenance

Budget 15-20% of initial development annually for maintenance, updates, and enhancements.

Infrastructure

Cloud hosting for custom applications typically costs a fraction of enterprise SaaS licensing.

Many Houston enterprises combine approaches:

• Buy standard tools (email, basic accounting)
• Build custom for core differentiating processes
• Extend purchased platforms with custom integrations
• Use low-code platforms for departmental applications

Evaluate each application need with these questions:

1. Is this function core to our competitive advantage?
2. How unique are our processes versus industry standard?
3. What is the 5-year total cost of ownership for each option?
4. What are the integration requirements?
5. How important is flexibility for future changes?

LayerLogix helps Houston enterprises make smart build vs buy decisions. We evaluate your situation objectively and recommend the approach that delivers the best long-term value. Contact us for a consultation.