People often mix up the terms “platform” and “app,” like they’re the same thing, but they’re actually pretty different. If you’re building a product, launching a business, or making tech decisions, knowing the difference can help you avoid wasted time, unnecessary costs, and frustration.
So, should you build a platform or an app? It all comes down to what you’re trying to accomplish. Are you creating a standalone product with a focused function? Or do you need a flexible system that supports multiple tools and interactions?
This guide explores their definitions, use cases, advantages, and how to determine which one is best for your needs and makes the most sense for your business for you to make the right investment in your tech stack.
TLDR; Contents
What is a Platform?
A platform is a digital ecosystem that enables interactions between multiple user groups, often facilitating transactions, services, or content sharing. Platforms provide the foundation for apps to function and usually serve as the backbone of digital businesses.
Examples of Platforms
- E-commerce Platforms: Amazon, Shopify
- Social Media Platforms: Facebook, LinkedIn
- Cloud Platforms: AWS, Google Cloud
- Service Platforms: Uber, Airbnb
Key Characteristics of a Platform
- Supports multiple applications or services
- Connects different user groups (buyers and sellers, service providers and consumers)
- Often provides APIs for developers to build on top of the platform
What is an App?
An app (short for application) is software designed to perform specific functions on a device. Apps can be web-based, mobile-based, or desktop-based and typically operate within a platform.
Examples of Apps
- Mobile Apps: Instagram, WhatsApp
- Web Apps: Google Docs, Slack
- Desktop Apps: Adobe Photoshop, Microsoft Word
Key Characteristics of an App
- Built for specific tasks or services
- Can operate independently or within a platform
- Provides a user-friendly interface for end-users
Platform vs App: Key Differences
1. Functionality and Scope
- Platform: Acts as a foundation that supports multiple applications and user interactions.
- App: Provides a specific service or function to end-users.
2. User Interaction
- Platform: Connects multiple parties (e.g., buyers and sellers on Amazon).
- App: Primarily serves a single user or a specific group of users.
3. Scalability
- Platform: More scalable as it supports various apps, services, and integrations.
- App: Limited in scope; scaling requires additional development efforts.
4. Revenue Models
- Platform: Generates revenue through subscriptions, transactions, commissions, or advertisements.
- App: Typically earns through direct purchases, subscriptions, or ads.
When to Choose a Platform vs an App
Choose a Platform If:
- You want to create an ecosystem that allows multiple user interactions (e.g., marketplace, social network).
- You need to support third-party applications and integrations.
- Your goal is long-term scalability with multiple revenue streams.
Choose an App If:
- You need a simple, user-friendly interface with a specific function (e.g., a to-do list app or fitness tracker).
- You’re targeting a specific audience with a standalone product.
- You have a clear monetization model focused on user subscriptions or one-time purchases.
The Future of Platforms and Apps
As technology evolves, the line between platforms and apps continues to blur. The best companies don’t choose one or the other—they build platforms that power multiple apps to create a seamless experience. Take Google: it’s a platform (Google Cloud, Google Play) and an app provider (Google Search, Gmail) all at once.
Deciding between a platform and an app depends on your business goals, scalability needs, and user experience expectations. Platforms provide a foundation for multiple applications and interactions, while apps focus on delivering specific services. Understanding these differences will help you make strategic technology choices.
If you’re considering building a platform or an app but need guidance on the best approach, book a call with us to explore the right solution for your business!