Comparison
Custom software or SaaS — there's no universal answer.
Both work — the question is which fits your process, team, and growth plans. Here's an honest comparison with a decision matrix.
SaaS
Subscription cloud software — sign up, configure, use. Examples: HubSpot, Monday.com, Pipedrive.
Pros
- Fast start: usable in days, no development wait.
- Low initial cost: monthly subscription, no large upfront investment.
- Automatic updates: provider develops, you just use it.
- Support and docs: someone to rely on when stuck.
Cons
- Monthly license forever: 5 users × 5 years = serious sum, and it's never yours.
- Limited customization: you adapt your process to the software.
- Integration walls: doesn't talk natively to every system.
- Vendor lock-in: if provider raises price or shuts down, you must export.
Custom software
System tailored to your process — one-time build, no monthly license. Examples: custom CRM, records system, project tool.
Pros
- Exactly your process: no compromise, no "use it this way".
- No per-user license: 5 or 50 people — same cost.
- Full integration: invoicing, ERP, email — connect what you want.
- Data ownership: your server, EU, full control.
Cons
- Higher initial cost: €3,800–12,500 build depending on scope.
- Longer rollout: 6–16 weeks build + test + training.
- Maintenance needed: someone must update and fix (but cheaper than license).
- You rely on one developer: choosing a reliable partner matters.
Decision matrix
| Aspect | SaaS | Custom software |
|---|---|---|
| Initial cost | Low (signup) | Higher (development) |
| 5-year TCO (10 users) | €8k–€25k (license) | €3,800–12,500 (build + maintenance) |
| Rollout time | 1–4 weeks | 6–16 weeks |
| Customization | Limited (configuration) | Full (anything implementable) |
| Integrations | Predefined / API | Any system |
| Data ownership | On provider's servers | Yours, full control |
Which to choose in your situation?
No right or wrong — only fit or misfit. Here are 4 typical situations.
Choose SaaS if your processes are standard
You have standard processes, need to start fast, and budget doesn't allow upfront build. E.g. simple CRM for 5 people where off-the-shelf covers needs.
Choose custom if your processes are unique
You have unique processes, need integrations, and plan 3+ years ahead. E.g. manufacturer where CRM must talk to production system.
Choose SaaS if you're still exploring
You don't know exactly what you need yet — SaaS helps you try before investing in development.
Choose custom if you've outgrown SaaS tools
You've outgrown 1–2 SaaS tools and license + workarounds cost more yearly than a build. Time to switch.
Verdict
For SMBs, SaaS is the best start — fast, cheap, tryable. But as the company grows, processes specialize, and SaaS limits hurt more, custom software is cheaper and more effective long term. The tipping point typically comes at 3–5 users and 2–3 years of SaaS use.
My recommendation: start with SaaS if you're unsure. But if you already know your business logic isn't standard — custom pricing, industry specifics, multiple system integrations — don't waste time on SaaS workarounds. A 30-minute consultation can clarify which direction is yours.