Why in-house platforms can undermine your business strategy | TechCrunch

In the rapidly evolving tech landscape, the promise of control reigns supreme. And it’s why founders, CEOs, and technical decision-makers are increasingly drawn to the idea of building in-house platforms. The appeal is understandable — complete sovereignty over every layer of the tech stack, from the user interface down to the most granular data interactions. It’s an intoxicating vision that promises a bespoke solution tailored precisely to a company’s unique needs. Yet, as alluring as this complete control might seem, it’s often more a mirage than reality.

As the CTO of WSO2 with 20-plus years of industry experience, my hands-on involvement in productizing development platforms has given me an in-depth understanding of the challenges and opportunities in this space and shaped my perspective on the intricate balance between control and agility in tech strategy. I’ve also brought this perspective to my efforts in driving the digital transformation programs for numerous enterprises, combining strategy with practical execution to help architect and implement digital platforms that directly contribute to the success of these organizations.

This article builds on the experience and insights I have gained to pierce through the illusion of control an in-house platform brings and reveals how it can hamper your broader business objectives, such as agility, focus, and scalability.

The lure of control

Control is a tantalizing promise that captures the imagination of even the most seasoned technical leaders. In an ecosystem where data breaches are commonplace and customer demands for personalized experiences are soaring, the idea of owning every single layer of your technology is the business equivalent of a Swiss Army knife — customization, security, adaptability, all within the palm of your hand. In a competitive market, this illusion of ultimate control can feel like a game-changer, a unique edge that places you miles ahead of competitors who are dependent on third-party solutions.

But here’s where things get tricky. This notion of absolute control is often a siren song, leading organizations down a path filled with unforeseen challenges and constraints. What initially seems like an all-encompassing solution can quickly turn into a quagmire of escalating costs, dwindling focus, and stifling complexity. Moreover, the dream of control often overlooks the inherent trade-offs. What you gain in customization, you often lose in agility. What you acquire in data security, you sacrifice in resources that could be otherwise allocated to innovation or customer acquisition.

The reality: Costly trade-offs

Let’s look closer at the all-too-real trade-offs that come when you build a customized, in-house platform.

Lost agility