Announcing MCP Toolbox Java SDK v1.0: Agentic data access for the enterprise
cloud.google.com·6d ago
Cloud & Infrastructure
The New Stack·Aug 9·5 min read
Platform Engineering ROI: What it costs to build your own platform
TL;DR
Building an internal developer platform can cost organizations significantly over five years, often leading to unexpected expenses and challenges. Understanding these costs is crucial for making informed decisions about platform engineering investments.
✦ Why It Matters
Evaluate your platform engineering strategy to avoid costly miscalculations in your budget planning.
Key Takeaways
- Calculate all-in headcount for building a platform.
- Assess ongoing maintenance and integration costs for internal platforms.
- Focus on building developer-facing layers while buying commodity infrastructure.
- Recognize the opportunity cost of engineering resources spent on platform development.
Full Summary
Creating an internal developer platform typically involves significant investment, averaging $7.5 million per year for a team of 60 engineers. This includes various specialized teams for infrastructure, operations, and security, among others.
In contrast, purchasing a commercial platform allows companies to operate with a much smaller staff, as they avoid ongoing maintenance and development burdens. The hidden costs of building a platform often go unaccounted for, leading to misleading comparisons with commercial solutions.
Additionally, the rapid pace of innovation from vendors can outstrip internal efforts, resulting in a widening gap in capabilities. Ultimately, organizations should focus on building applications that differentiate them rather than investing heavily in platform development.