How Steve Malko Knows When to Build Software and When to Buy

Episode Summary:

In this episode of Engineering Choices You Have to Defend, host Nicola Onassis sits down with Steve Malko, a technology and operations leader with more than 15 years of experience across technology, software development, product management, and consulting. Steve shares how organizations can make smarter build-versus-buy decisions by evaluating speed, quality, cost, and their ability to maintain the software they choose.

The conversation explores why building custom software is not always the best solution, using a regional insurance company’s decision to develop its own CRM instead of adopting Salesforce. Steve explains how outdated business processes, limited technical resources, and concerns about vendor lock-in can lead organizations to build systems they may struggle to maintain. He also shares an example of a large technology company that developed a custom call center platform but ultimately abandoned it because of marketing and operational challenges.

Steve also discusses how AI is changing the economics of software development without eliminating the risks of building from scratch. While AI can help teams create integrations, connectors, and custom components faster, it does not automatically give organizations the expertise, governance, or operational maturity needed to build complex platforms. For engineering leaders, Steve emphasizes evaluating business processes first, understanding internal capabilities, and choosing tools that deliver long-term value.

Key Takeaways:

• Build-versus-buy decisions should consider speed, quality, cost, and long-term maintenance
• Organizations should evaluate existing business processes before investing in custom software
• Custom development makes sense when requirements are unique and the organization has the resources to support it
• AI can accelerate integrations and customization, but security, governance, and technical expertise remain essential
• Engineering leaders should focus on the business problem before deciding which technology to build or buy

Connect with Steve Malko:

• LinkedIn: linkedin.com/in/stevemalko
• Website: stevemalko.com

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"Engineering Choices You Have to Defend explores the real technical decisions behind regulated software, engineering transformation, AI integration, and the systems leaders build to make complex technology work in the real world."