Neither microservices nor monolith is inherently better. What matters is whether the architecture is appropriate for the business and supports the investment thesis. Here's how to assess architecture in M&A context.
Architecture Assessment Framework
Appropriateness
- Does the architecture match the team size and capability?
- Does it support the current scale and projected growth?
- Is the complexity justified by the benefits?
Execution Quality
- If microservices, are service boundaries well-defined?
- If monolith, is it well-structured or a "big ball of mud"?
- Is the implementation consistent with the design?
Monolith Considerations
Advantages
- Simpler to develop, deploy, and operate
- Easier to understand and debug
- Lower infrastructure complexity
- Appropriate for smaller teams
Concerns
- Scaling requires scaling everything
- Deployment couples all changes together
- Technology choices are system-wide
- Can become unwieldy at scale
Microservices Considerations
Advantages
- Independent scaling of components
- Independent deployment of services
- Technology flexibility per service
- Team autonomy and parallel development
Concerns
- Operational complexity
- Network reliability and latency
- Distributed system debugging
- Requires sophisticated tooling and practices
M&A Architecture Red Flags
- Premature microservices: 3-person team with 20 services = unnecessary complexity
- Distributed monolith: Microservices that must be deployed together aren't micro
- Big ball of mud: Monolith with no structure or boundaries
- Architecture astronauts: Over-engineered systems that don't match business needs
Integration Implications
Architecture affects integration planning:
Monolith Integration
- Usually all-or-nothing migration
- May need to run in parallel during transition
- Data extraction can be complex
Microservices Integration
- Can migrate services incrementally
- Service replacement vs. integration options
- More flexibility but more complexity
Key Takeaway: Assess architecture for appropriateness and execution quality, not adherence to trends. A well-executed monolith may be more valuable than poorly-executed microservices. Consider how architecture affects your integration plans and growth thesis.