Vertical Integration
Vertical integration is a business strategy where a company controls multiple stages of its supply chain, from raw materials to final product distribution. In technology and software development, it refers to controlling the entire stack of components, services, or infrastructure needed to deliver a product or service. This approach contrasts with relying on third-party providers for parts of the value chain.
Developers should understand vertical integration when designing systems that require tight control over performance, security, or proprietary features, such as in high-performance computing, specialized hardware-software combinations, or platforms like Apple's ecosystem. It's also relevant when building end-to-end solutions where integration across layers (e.g., from hardware to application) is critical for user experience or competitive advantage, though it often involves higher costs and complexity compared to modular approaches.