Episode 35: AI Hype vs. Reality: Rethinking Build vs. Buy

14/08/2025 32 min
Episode 35: AI Hype vs. Reality: Rethinking Build vs. Buy

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Episode Synopsis

Send us a textIn this episode, Jon and Logan  explore whether generative AI fundamentally changes the build versus buy decision for businesses considering software solutions. They analyze recent claims about AI-powered cost savings and examine the underlying principles that should guide technology decisions.How Logan is using  AI in his common tasks Looking at recent claims from companies like Klarna about replacing SaaS with AI-built softwareRevisiting the fundamental truth that Organizations must understand their core expertise when making build vs buy decisions"Vibe coding" with AI creates maintenance problems as context for coding decisions is lostCompliance, regulation, and data residency considerations become more complex with AICloud infrastructure reliability remains a critical concern for AI-dependent systemsAI is most effective as an assistant for routine tasks rather than replacing human judgmentTraditional business frameworks still apply when evaluating technology investmentsLinks:Jon Gallagher on LinkedInLogan Gallagher on LinkedInThe auto parts software mentioned: Triad Systems became ActivantAaron Levie - CEO of Box:Box becoming an AI-First CompanyRecommendationsIf you enjoyed this episode, please tweet us at @cloudoutloudpod or email us at [email protected]. We hope to see you again next week for another episode of Cloud Out Loud.