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

Cloud Out Loud Podcast

Cloud Out Loud Podcast
Episode 35: AI Hype vs. Reality: Rethinking Build vs. Buy
Aug 14, 2025
Jon and Logan Gallagher

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In 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 software
  • Revisiting 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 lost
  • Compliance, regulation, and data residency considerations become more complex with AI
  • Cloud infrastructure reliability remains a critical concern for AI-dependent systems
  • AI is most effective as an assistant for routine tasks rather than replacing human judgment
  • Traditional business frameworks still apply when evaluating technology investments

Links:

Jon Gallagher on LinkedIn

Logan Gallagher on LinkedIn

The auto parts software mentioned:
Triad Systems became Activant

Aaron Levie - CEO of Box:
Box becoming an AI-First Company
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