Build vs Buy RAG: The Complete Guide
An honest, data-driven guide to help engineering leaders decide whether to build custom RAG infrastructure or use a platform.
For most teams: Use a RAG platform. The 6-12 week build time and $30K+ first-year cost of building custom rarely makes sense unless RAG is your core product or you have unique requirements no platform can meet.
Build custom when: RAG is your competitive moat, you have a dedicated ML infra team, or you have requirements that genuinely cannot be met by any platform.
Timeline Comparison
What it actually takes to get RAG into production
First Year Total Cost
All costs included: development, infrastructure, maintenance
- Developer time (6-8 weeks @ $100/hr)$22,000-32,000
- Vector DB (Pinecone/Qdrant Cloud)$2,400-6,000/yr
- Embedding service$1,200-3,000/yr
- Compute (API servers)$1,200-2,400/yr
- Ongoing maintenance (20% dev time)$4,400-6,400/yr
- Setup time (3 days @ $100/hr)$2,400
- Platform (Developer plan)$588/yr
- Vector DBIncluded
- Embedding serviceIncluded
- Maintenance~$500/yr
Decision Matrix
Side-by-side comparison of key factors
| Factor | Build Custom | Use Platform |
|---|---|---|
| Time to Production | 6-12 weeks | 3 days |
| First Year Cost | $29,000-39,000 | $3,500-5,000 |
| Ongoing Maintenance | 20% of dev time | Near zero |
| Customization | Unlimited | High (API + visual) |
| Team Skills Required | ML/Infra expertise | Any developer |
| Scaling Complexity | High | Managed |
| Vendor Lock-in Risk | None | Low (API-first) |
The Honest Answer
When to build custom vs when to use a platform
- RAG is your core product differentiation
- You have dedicated ML infrastructure team
- Unique requirements that no platform supports
- Data residency requires on-premise only
- Budget for 6+ month development cycles
- Need to ship AI features quickly
- Team lacks ML infrastructure expertise
- Want to focus on application logic, not infra
- Budget-conscious or startup environment
- Standard RAG use cases (search, Q&A, support)
Key Insight
The question isn't "can we build this?"—most teams can. The question is "should we?" Building custom RAG is like building your own database: technically possible, rarely the right choice. Your competitive advantage is in your application logic, not in reimplementing infrastructure that's already been solved.
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