The $50,000 question: SaaS or custom development?
You've been using Salesforce, QuickBooks, and a standard ERP for 2 years. They work... more or less.
But every time you want to do something "simple" you encounter:
- "This functionality is not available in your plan"
- "You need to hire the Enterprise plan ($800/month additional)"
- "That requires a custom integration ($5,000)"
And you start wondering: Wouldn't it be better to have my own system?
This is the most important (and expensive) decision you'll make in the coming years. Let's do it right.
The uncomfortable truth: You don't always need custom software
Let's be direct: SaaS is BETTER for most basic needs.
If you need:
- Basic CRM → Salesforce/HubSpot
- Accounting → QuickBooks/Xero
- Project management → Asana/Monday
- Email marketing → Mailchimp
Don't reinvent the wheel. Use SaaS.
But there's an inflection point where SaaS becomes your bottleneck.
The 5 signs you've outgrown SaaS
1. You pay for 10 functionalities but only use 3
Typical example:
You pay Salesforce Enterprise: $150/user/month x 15 users = $2,250/month
But you really use:
- Lead tracking
- Sales pipeline
- Basic reports
70% of Salesforce functionalities you don't touch. You're paying $18,900/year for functionalities you don't need.
Change moment: When custom software with EXACTLY what you need costs $30,000 one-time.
2. Integrations between tools are killing you
Real scenario we constantly see:
- Leads arrive via web form
- Go to Salesforce manually
- When you close a sale, you create invoice in QuickBooks
- You copy order to your inventory system
- You notify logistics by email
- You update tracking Excel
6 systems. Zero integration. 100% manual.
You buy Zapier to automate: $50-300/month. It works... sometimes. It breaks without warning.
Change moment: When you're paying $200/month in integration tools + 10 hours weekly fixing broken connections.
3. Your process is unique and you're forcing it to fit generic SaaS
Example: Food distributor
You need:
- Catalog with prices per customer
- Automatic volume discounts
- Recurring order tracking
- Integration with 3 different suppliers
- Delivery route management
You try with:
- Shopify (not B2B)
- SAP Business One ($$$$ and overkill)
- Supplier's custom system (terrible UX)
None does exactly what you need. So you make workarounds.
Change moment: When your competitive advantages are lost because generic software doesn't support them.
4. You scale and per-user cost is destroying you
Brutal math:
Year 1 (10 users): $50/user/month = $500/month = $6,000/year
Year 2 (20 users): $1,000/month = $12,000/year
Year 3 (40 users): $2,000/month = $24,000/year
3 years = $42,000 paid.
Custom software: $35,000 one-time. Unlimited users. Forever.
Change moment: When your annual SaaS spend exceeds 60% of custom software cost.
5. You're hostage to price increases
Real story:
Company uses cloud ERP for 3 years. They migrate their entire operation. 40 trained employees.
Year 4: "We're updating our prices. New cost: $1,800/month (before: $800/month)."
You can't negotiate. You can't migrate easily. You're trapped.
Change moment: When you realize you're not a customer, you're a hostage.
When SaaS CONTINUES to be better
Not everything is black and white. SaaS is better when:
- Standard functionality without customization
If Gmail does exactly what you need, don't build your email client.
- You need to be operational in 24 hours
SaaS: sign up and ready. Custom: 2-6 months development.
- Your process changes constantly
If you're still experimenting, SaaS gives you flexibility. Custom software is better when you know what you need.
- You don't have initial budget
$50/month vs $30,000 upfront is a real difference for startups.
- Updates and maintenance aren't your core business
With SaaS, someone else worries. With custom, you need a maintenance plan.
The hybrid solution (what really works)
The best strategy for 10-50 employee companies is NOT "all SaaS" or "all custom".
It's smart hybrid:
Use SaaS for:
- Email (Gmail/Outlook)
- Basic accounting (QuickBooks)
- Internal communication (Slack)
- Storage (Drive/Dropbox)
Use custom for:
- Your core process that differentiates you
- Integrations between systems
- Unified dashboard
- Industry-specific processes
Example: B2B Distributor
- Custom: Order system, catalog, customer management, supplier integration
- SaaS: Accounting (QuickBooks), Email (Gmail), Docs (Drive)
Result: Best of both worlds.
How to make the decision: 5-question framework
Question 1: Is it your competitive advantage?
If YES → Custom
Your unique sales/operation process is what differentiates you. Don't put it in generic software hands.
If NO → SaaS
Accounting, email, docs: use what everyone uses.
Question 2: How much do you currently spend on SaaS for this?
Less than $800/month → SaaS still worth it
$800-1,500/month → Gray zone, evaluate
More than $1,500/month → Probably custom is cheaper
Question 3: Do you need complex integrations?
Many integrations → Custom is better
One system that talks to everything vs 5 systems that almost never talk.
Question 4: How fast do you need to be operational?
This week → SaaS
Can wait 2-4 months → Custom is an option
Question 5: Is your process already stabilized?
Still experimenting → SaaS
Clear and repeatable process → Custom
Real cost analysis: SaaS vs Custom over 5 years
Scenario: 25 employee company
Option A: SaaS Stack
- CRM: $3,000/year
- ERP: $8,000/year
- Inventory: $2,400/year
- Integrations: $1,800/year
- Annual total: $15,200
- 5-year total: $76,000
Option B: Custom Software
- Initial development: $45,000
- Annual maintenance: $4,000/year
- 5-year total: $61,000
Difference: $15,000 saved + system EXACTLY to your measure
The hidden cost of SaaS nobody mentions
Beyond license price, SaaS has hidden costs:
1. Constant training time
Every update changes the UI. Every new employee needs training.
2. Vendor lock-in
Migrating 5 years of data from Salesforce to another system: $$$$
3. Functionalities that "almost" do what you need
So your team makes workarounds eternally.
4. Dependence on third-party uptime
If Salesforce goes down, your operation paralyzes.
With custom software: you control everything.
Next steps: What works for YOUR case?
Every company is different. There's no universal answer.
We offer free 30-minute analysis:
- We audit your current tool stack
- We calculate real cost (including hidden)
- We project custom solution cost
- We honestly tell you what works
Yes, sometimes we'll tell you "stay with SaaS". And that's okay.
Ready for the analysis?
Schedule your free session and discover which option makes sense for your company.