Auth for Startups: What to Build vs Buy
As a startup, your time and resources are limited. When it comes to building or buying your authentication (Auth) system, the decision can be complex. The build vs buy decision changes at every funding stage. A framework for when to pay per-MAU and when to self-host is essential for founders, CTOs, and senior technology leaders.
Why the Build vs Buy Decision Changes
At the seed stage, startups often choose to build their Auth system from scratch. This allows for customization and control over the system. However, as the company grows and secures more funding, the decision to buy or use a hosted solution becomes more relevant.
Key Insight: The decision to build or buy is not static. It depends on the company's stage, the team's expertise, and the available budget.
When to Build: The Seed Stage
At the seed stage, startups often have limited resources and a small team. Building an Auth system from scratch allows for full customization and control. This is ideal for startups that want to avoid vendor lock-in and have the flexibility to change their system as needed.
However, building from scratch can be time-consuming and resource-intensive. It requires a team with the expertise to implement and maintain the system. For startups with limited resources, this can be a challenge.
- Pros of Building: Full customization, control, and flexibility.
- Cons of Building: Time-consuming, resource-intensive, and requires a skilled team.
When to Buy: The Series A Stage
As the company grows and secures more funding, the decision to buy a hosted Auth solution becomes more relevant. At the Series A stage, startups often have the resources to invest in a hosted solution that can scale with the company.
Buying a hosted solution allows for faster deployment and reduces the need for a skilled team to maintain the system. This is ideal for startups that want to avoid the complexity of building and maintaining their own system.
Warning: Buying a hosted solution can lead to vendor lock-in. It's important to choose a solution that allows for flexibility and the ability to change your system as needed.
When to Pay Per-MAU: The Series B Stage
At the Series B stage, startups often have the resources to invest in a per-MAU (Monthly Active User) pricing model. This allows for cost-effective scaling and the ability to pay only for the users they have.
Per-MAU pricing is ideal for startups that want to avoid the complexity of building and maintaining their own system. It allows for faster deployment and reduces the need for a skilled team to maintain the system.
However, per-MAU pricing can be expensive if the company has a large number of users. It's important to choose a solution that allows for cost-effective scaling and the ability to pay only for the users they have.
When to Self-Host: The Series C Stage
At the Series C stage, startups often have the resources to invest in a self-hosted Auth solution. This allows for full control over the system and the ability to customize it as needed.
Self-hosting is ideal for startups that want to avoid vendor lock-in and have the flexibility to change their system as needed. It allows for faster deployment and reduces the need for a skilled team to maintain the system.
However, self-hosting can be time-consuming and resource-intensive. It requires a team with the expertise to implement and maintain the system. For startups with limited resources, this can be a challenge.
Choosing the Right Solution for Your Startup
When choosing the right solution for your startup, it's important to consider the following factors:
- Stage of the Company: The decision to build or buy depends on the company's stage.
- Team's Expertise: The decision to build or buy depends on the team's expertise.
- Available Budget: The decision to build or buy depends on the available budget.
For startups that want to avoid vendor lock-in and have the flexibility to change their system as needed, self-hosting is the ideal solution. For startups that want to avoid the complexity of building and maintaining their own system, buying a hosted solution is the ideal solution.
At Bastionary, we provide a self-hosted Auth + Billing + Licensing + Feature Flags platform that allows for full control over the system and the ability to customize it as needed. This is ideal for startups that want to avoid vendor lock-in and have the flexibility to change their system as needed.
Whether you choose to build or buy, the key is to choose a solution that allows for flexibility and the ability to change your system as needed. This is essential for the long-term success of your startup.