I need to be honest with y’all—I’m struggling with a massive sunk cost dilemma and I’d love your perspectives.
The Situation
When I joined my current company two years ago as VP of Engineering, one of my first big initiatives was building an internal developer platform. We’d grown from 25 to 60 engineers, and the pain was real: inconsistent deployment processes, knowledge silos, new engineers taking weeks to ship their first code.
We committed hard. A dedicated team of 5 engineers spent 18 months building a custom Backstage implementation with:
- Custom service catalog integrations
- Bespoke deployment workflows for our multi-tenant architecture
- Homegrown templates for our specific tech stack
- Internal plugins for our compliance requirements
The team did beautiful work. Our developers loved it. Onboarding time dropped from 3 weeks to 3 days. We were proud.
The Problem
Fast forward to today, and I’m reading that platform engineering DIY is dead. Gartner says 80% of software orgs will have platform teams by 2026, but the smart ones are buying managed solutions, not building from scratch.
Now I’m seeing it play out:
- Our platform team is underwater maintaining what we built
- Feature requests are piling up faster than we can address them
- Every Backstage version upgrade is a multi-week project
- The team that built this wants to work on product features, not platform infrastructure
- Meanwhile, managed Backstage providers have shipped AI-powered workflows, better integrations, and features we’d need months to build
The Data That Haunts Me
According to the research, DIY platforms typically take 6-12 months just to get to basic functionality, with complex implementations running 18+ months. That was us.
But what I didn’t account for: the ongoing maintenance burden. Teams achieving the best outcomes are buying or using managed solutions for the infrastructure layer, freeing platform engineers to focus on the unique golden paths and integrations that actually differentiate their developer experience.
The Leadership Dilemma
How do I walk into a room with my CEO and CFO and say, “Remember that 18-month investment in our custom platform that we celebrated last quarter? Well, I think we should migrate to a paid solution and redeploy our platform team to product work.”
It feels like admitting failure. Like we wasted time and money. Like I made the wrong call.
But the opportunity cost is crushing me. Every week our platform team maintains DIY infrastructure is a week they’re not:
- Building golden paths for our unique ML deployment needs
- Creating integrations with our proprietary systems
- Solving actual differentiated problems for our developers
What I’m Considering
The hybrid approach makes sense to me: buy the managed Backstage core, keep our custom integrations via APIs and plugins, focus our platform team on what makes us unique.
But I need to make the case. And honestly, I need to know: Am I overthinking this? Has anyone else navigated this transition? How did you frame it to leadership?
The worst part is knowing that if I were starting today, I’d 100% choose managed. But we’re not starting today—we’re 18 months and significant investment deep.
Would love your honest takes. Especially if you’ve been in a similar spot.