If you’re an entrepreneur, it can be tempting to deploy new software in-house. You want to keep everything local and under your control for obvious reasons. However, doing it this way brings with it a lot of disadvantages. Even if you’re building niche custom software with high margins, it’s almost never the case that it’s a better business proposition to bring it in-house.
The purpose of this post is to explain why. We run through some of the reasons why deploying software in-house doesn’t really make sense and why you should look for alternative options like the cloud.
IT’S REALLY EXPENSIVE
One of the first things you’ll discover when you try to deploy software in-house is that it’s really expensive. You think that building a simple internal tool will only cost a few thousand dollars, but it often winds up more than 5-20 times that amount.
The reason for this comes down to the sheer cost of the inputs. Not only do you have to hire developers, but you also need security testers, servers, and people who are able to fix systems on the fly. Then you need to be able to apply updates at a time that’s convenient for your company, like 2am on a Sunday morning. This is not the sort of approach that reduces costs.
IT WILL BE OUT OF DATE IN 12 MONTHS
A second reason why you shouldn’t develop software in-house is that it will usually be out of date in around 12 months. Thanks to AI and vibe coding, it’s easier than ever for competitors and rivals to simply update their software and then distribute it by the cloud. Once it has been improved, it’s hard for you to compete. It doesn’t make sense developing internal tools when you could get internal ones that are better for a fraction of the cost.
So, what should you do? Well, most of the business world now uses off-the-shelf tools that are patched regularly by third-party providers. If you are a software developer, then you should always distribute your software through the cloud and minimise any local downloads that your clients are required to make.
IT GOES AGAINST THE SOFTWARE BUSINESS MODEL
Whether you like it or not, it’s also worth accepting the fact that you’re part of the software business model ecosystem. Your job is essentially to sell products and services that help people instead of just writing code. If once you build something yourself, you constantly have to maintain it, which is why it’s more useful for most businesses to outsource to a third party.
Make sure you find a data center that’s willing to host your software. We’re the data center, and our source of tasks managing it to a third party, including even the software elements. Also, once it’s in the cloud, it’s easier to update. So, if you are distributing this to your team or to third parties, it becomes more straightforward.
SECURITY NIGHTMARES
Developing software on-site is also a bit of a security nightmare. Think about how many big companies have been hacked in the last year alone. Even though they have entire teams dedicated to security, they still experience breaches. That’s because it’s really difficult for most companies to fully protect their entire digital surface.
If you’re developing a custom app, then the risk is even higher. Many criminals will see you as an easy target and dedicate more of their resources to undermining your security efforts. Even if you miss a single update or have one weak password, it can be enough for them to breach your system and gain control. Therefore, if you are developing software, make sure you do it in a secure environment in the cloud. Monitor everything that happens on your network. Monitor all of the traffic running through your network to reduce risks.
GOOD DEVELOPERS DON’T WANT TO USE INTERNAL TOOLS
It’s also worth noting that most good developers don’t want to use boring internal tools. If you try to develop software in-house, you’ll probably only get developers who couldn’t find jobs elsewhere in the cloud or software as a service industry.
Because of this, you need to be careful. The nature of the development itself can dictate the quality of the people who join your team. Sometimes you can find you attract a lot of low-skill individuals who seem good on paper but can’t actually deliver in reality. When this happens, it sets you back even more and raises your costs. Worse still, sometimes you can’t get rid of the people who are underperforming for several years due to labour laws.
SOMEONE ELSE ALREADY SOLVED YOUR PROBLEM
Developing software in-house is also an issue. If somebody else already solved your problem, then as a business you should be able to staple solutions to get using software like Zapier for example. If you need CRM or expense tracking, those are already well-served markets. If you need something that tracks your inventory or HR software for dealing with troublesome employees, then these solutions are already available. You don’t need to look far. If you need to connect your CRM to your HR software for compliance reasons, then you can do so. It’s trivially easy with APIs.
YOUR CUSTOM SOLUTION BECOMES A PRISON
Finally, when you try to develop software in-house, it can seem exciting at the time because it’s bespoke to your organisation. However, it will always become a prison in the long run. As your industry evolves and changes, so too do your workflows.
However, if you have an expensive custom solution in place, you feel locked into how that particular software works. If you want to change something you can’t, or you have to go back to the original developer who then charges a lot of money.
To get around this, it’s worth looking for solutions that operate solely in the cloud. Vendors will constantly update these to reflect new working practices, so you don’t have to worry about this in-house. If you discover a limitation with the software, then you can always go back to the vendor and ask them to improve it, or choose someone else.
Thank you so much for reading! – xo N
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this is a contributed post.
New Lune 
super interesting!
Thank you!