App Integrations for SaaS: The Ultimate Build vs. Buy Guide

Every SaaS organization faces the crucial decision of whether to build app integrations in-house or purchase off-the-shelf solutions. While developers often lean towards building, teams aiming for optimal resource allocation need a comprehensive framework to evaluate their options.

In this guide, we share insights from our users, focusing on user-facing integration features. While our discussion centered on these features, the principles can also apply to internal/backend tools.

Before evaluating the specifics of building or buying a feature, the first question to address is whether buying should even be considered.

1. Core Features: Always Build In-House

“You must know what your core features are. For Nextdoor.com, though it’s a social network, the posting and chat features are not the core. Instead, it is the technology of gathering and managing large groups of people by region that is the core," says Nirav Tolia, Nextdoor.com CEO.

Your core product’s unique value proposition is what sets you apart in the SaaS market. If your differentiator can be purchased off the shelf, it poses significant risks:

• It indicates that your core product is commoditized.
• Your ability to iterate on core features is limited by the solution provider.
• If the provider pivots or goes out of business, your product is compromised.

Knowing your core features and maintaining control ensures you stay competitive, even if others mimic your feature set. On the flip side, you should consider buying solutions for features that are inconsequential or commoditized to most of your user base.

“Even if it’s a fundamental feature of your product, if it’s commoditized or inconsequential, that can't be the differentiator you invest in” says Nirav.

It’s sometimes tough for management to decide what the core features are. The engineers’ perspective of the core can be very different from the product management or business teams. Without this clarity, many SaaS companies waste valuable time and resources building features that are better served by buying a solution.

2. Why Engineers Often Prefer Building

While engineers tend to prefer building, many overlook that most off-the-shelf solutions are created by engineers for engineers.

Top-Down Decisions: Uneasiness often stems from top-down decisions where teams were forced to implement purchased solutions to replace work they had already started.

Builder Mentality: Engineers are naturally inclined to build. The creative process of developing apps and products is fulfilling, and purchasing a solution can feel like taking away their creative power. However, when engineers move into managerial roles, they prioritize resource allocation, often placing core feature development above ancillary features.

Feature Limitations: Building in-house gives engineers complete control over every detail, while buying a solution means relying on the product’s capabilities and potentially facing limitations on unique edge cases that the provider cannot accommodate.

Junior Engineer Mentality: Junior engineers often worry about their future job prospects. They want to use, practice, and experience their preferred programming languages. Being asked to use a product or another language can feel like a missed opportunity for them to practice and grow.

3. The Importance of Discovery and Planning

Before evaluating whether to build or buy, you must understand and decide your "core." Proper discovery and planning help you:

1. Accurately evaluate the costs of building and maintaining the feature in-house.
2. Determine if a purchased solution will meet your use cases now and in the future.

Teams often fail to apply the same level of scrutiny to ancillary features as they do to core products, leading to unforeseen challenges. Proper discovery and planning are crucial.

4. How to Evaluate an Embeddable App Integration Product

1. Features & Extensibility: Map out your requirements and see how well the solution meets them. Evaluate out-of-the-box functionality and the ability to extend the solution for unique needs.
   • Out-of-the-Box Functionality: The more aligned the solution’s features are with your use cases, the more time your team saves. For example, Interactor offers pre-built connectors and managed authentication, allowing SaaS product managers to build app integrations without involving too many engineers.
   • Extensibility: Check if the platform allows customization for unique requirements. With Interactor, you can call an integration’s API directly, preventing limitations due to the platform's scope.
   • Additive Features: Value-added features like error logging, analytics, and permissions handling can come by default with solution providers.
2. Frequency of Updates (Maintenance): Consider how often the feature will need updates. Frequent updates favor a low-code solution like Interactor, which allows changes to take place without affecting the SaaS product.
3. Strategic Expertise: Product managers may not be experts in integration features. Interactor’s technical success team helps design optimal integrations, ensuring a great user experience.
4. User Interface: Ensure the feature looks native to your app. The SaaS users don’t know Interactor is running behind the scenes and feel that all the integration features are built in-house.
5. Urgency: Evaluate how quickly the feature is needed. If user demand is high and delaying the feature affects sales or retention, buying a solution to speed up time-to-market is beneficial.
6. Scaling Costs:
   • When Buying: Discuss scaling costs with the provider and negotiate multi-year contracts to lock in pricing.
   • When Building: Scaling an ancillary feature involves unforeseen engineering and support costs. Be realistic about the resources needed to maintain and scale the feature.
7. Resource Constraints:
   • Cash vs. Time: Even early-stage startups may consider Interactor with its low initial costs. Always consider if building and maintaining the feature is the best use of your team’s time compared to enhancing the core product. In most cases, it may end up being much cheaper to buy than build.

Summary

The build vs. buy decision is complex. By considering these factors, you can make the best choice for your company. Remember:

1. Know your core and never buy your core differentiator.
2. Have a clear understanding of your short and long-term use cases.
3. Be realistic about the resources needed to maintain, iterate, and update the feature.

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