Welcome to this Cloud Wars Agent and Copilot Minute. In these discussions, I’ll be analyzing opportunities, impact, and outcomes possible with AI; today’s focus is why AI build-versus-buy discipline is increasingly important: AI lowers the cost of building custom tools without removing the long-term risks of ownership.
Highlights
00:18 — I’m going to challenge the oft-repeated claim that software is dead. AI coding tools have led some organizations to reject software purchases, with McKinsey reporting that nearly one-third have done so at least one time because they believed they could build the required functionality internally with AI coding tools.
00:58 — Consider that mature ERP platforms incorporate decades of domain expertise. Dynamics 365 F&O provides four service updates per year, including AI and business intelligence (BI) enhancements, and compatibility with current Azure and SQL environments. Commercial software also provides access to an external labor market of experts who are familiar with those systems.
02:17 — Paragon Films previously operated a 20-year-old custom ERP that lacked upgrade capabilities, new capabilities, and outside support. The era of Microsoft Access databases illustrated how personal tools can become unsupported company systems.
03:40 —Our company builds specialized tools for competitor comparisons, QA automation, shipping workflows, and tailored reporting. These tools address needs that commercial vendors do not serve economically. Customers should buy when an existing product materially meets the business need and build when no suitable product exists and the need is sufficiently specialized. AI fills gaps between purchased systems rather than replacing mature software. Previously, those gaps were handled manually, in spreadsheets, or not at all.
More CIO and AI Agent Insights:
- AI Agent Skills Gallery Shortcuts Bespoke Builds
- Cowork Experiment Delivers Powerful AI Cost Lessons
- Governance, Billing Considerations With the Always-On Microsoft Scout
- 4 Requirements to Drive Results That Go Beyond ‘AI Theater’
- How AI Diagnosed a Fabric Capacity Problem for Quick Resolution
Community Summit North America is the largest independent innovation, education, and training event for Microsoft business applications delivered by Expert Users, Microsoft Leaders, MVPs, and Partners. Register now to attend Community Summit in Nashville, TN from October 11-15.
Kenny Mullican
CIO
Paragon Films
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