Every business owner hits this decision: subscribe to a ready SaaS everyone uses, or build custom software that fits your actual processes? The answer is not about company size; it is about how much competitive advantage your processes generate. Standardized processes → SaaS. Differentiating processes → custom.
Decision matrix — 8 criteria
| Criterion | Pick SaaS | Pick custom |
|---|---|---|
| Processes standardized? | Yes | No |
| Core to competitive edge? | No | Yes |
| Monthly budget ceiling | Total SaaS < €500 | €500+ or volume-based |
| Scaling profile | Linear / predictable | Explosive |
| Integration needs | Standard | Deep, multi-system |
| Data sovereignty / GDPR | Medium | High |
| 5-year TCO | Low | High upfront, lower later |
| Time-to-market pressure | High | Medium/low |
Five "SaaS" answers → SaaS. Five+ "custom" answers → custom. Mixed → hybrid.
5-year TCO (50-user enterprise example)
|---|---|---|
| Y1 — Setup | €2,000 | €45,000 |
| Y1 — Subscription | €12,000 | — |
| Y2 | €13,200 | €4,500 |
| Y3 | €14,500 | €5,000 |
| Y4 | €16,000 | €5,500 |
| Y5 | €17,500 | €6,000 |
| Total | €75,200 | €66,000 |
Custom starts expensive and stabilizes. SaaS compounds via subscription increases and per-seat escalation.
The hybrid model (usually the right answer)
- Core differentiating process → custom
- Support processes (accounting, HR, basic CRM) → SaaS
- Integration layer → custom middleware
Example: a logistics company runs SAP ERP (SaaS-ish), builds custom route optimization (custom), connects them via its own API layer.
Hidden SaaS costs
- Per-seat pricing + 10-15% annual increase
- Modules not included by default
- Premium support tier
- Data export limitations
- Customizations only by certified partner
- Vendor lock-in
Hidden custom risks
- Wrong team → project abandoned at month 6
- Scope creep → 50% budget overrun
- No documentation → code rots when first team leaves
- Maintenance is 15-25% of build cost annually
All reducible with the right
software agency and disciplined contracting.
*Makrops builds custom software for processes that define your competitive edge: CRMs, ERP modules, sector-specific operational platforms, SaaS products. Contact us.*