Off-the-shelf SaaS or custom software?
Short answer: if your process follows your industry's standard way of working, renting an off-the-shelf SaaS product is usually the fastest and most economical path. If your process sets you apart from competitors, if ready-made products force your business into their mould, or if licence costs multiply as users grow, custom software is better in the long run. For most businesses the right answer is a mix: SaaS for standard work, custom software for the work that makes the difference.
| Criterion | Off-the-shelf SaaS | Custom software |
|---|---|---|
| Getting started | Within days; open an account, configure it, use it. | Weeks or months; analysis, design, development and testing are needed. |
| Cost structure | Subscription per user or usage; low upfront cost, total cost rises over time. | High initial investment, then hosting and maintenance. Independent of the number of users. |
| Fit with your process | As far as the product allows; the process is often adapted to the product. | Complete; the software is designed around your process. |
| Data and lock-in | Data lives in the provider's system; exports and price changes depend on the provider. | Data and code are yours; code handover must be written into the contract. |
| Maintenance and security | With the provider; you manage access and settings. | With you or your maintenance team; security must be designed in from the start. |
| Who is it for? | Processes that work similarly in every business, such as accounting, e-mail and standard CRM. | Processes that set you apart, products offered to customers, work that needs deep integration. |
- 01
Standard work or differentiating work?
Processes such as accounting, e-mail, payroll or basic customer tracking work much the same in almost every business; building custom software for them is often reinventing the wheel. On the other hand, the service you offer your customers, your pricing logic or the workflow that makes your operation faster than competitors is what sets you apart. Forcing these processes into the mould of a product everyone uses traps your advantage in that mould too. Before deciding, sort your processes into these two groups.
- 02
Calculate total cost over five years
SaaS has a low upfront cost, but per-user fees rise as the team grows, advanced features are often only in higher tiers and prices can change over time. Custom software requires a high initial investment, but adding users needs no extra licences; the ongoing cost is hosting, maintenance and development. Compare total cost over five years with the expected number of users, not the first year. Starting with a small first version noticeably lowers the initial investment in custom software.
- 03
Data ownership and an exit plan
When using SaaS, check from the start in what format and how completely your data can be exported; how you would leave if the provider raises prices, discontinues the product or the company is acquired should not be left unclear. If personal data is processed, the country where data is stored and the data processing agreement also matter. With custom software, the contract must state clearly that the source code, documentation and server access will be handed over to you; otherwise the dependency simply moves from the provider to the developer.
- 04
The hybrid path: SaaS core, custom integration
For many businesses, the most efficient setup is to use mature SaaS products for standard work and connect them to each other and to business-specific components through APIs. For example, accounting and e-mail stay in off-the-shelf products while the customer panel, quote calculation or operations screen is built as custom software and exchanges data with the ready-made products. This approach provides both speed and differentiation; the only condition is that the chosen products offer a well-documented API.
- 05
How do you know you have hit the limits of an off-the-shelf product?
If the team has started doing what the product cannot do in spreadsheets and by hand, if the same data is entered into several systems again and again, if every new feature needed requires an extra app or a higher tier, and if the licence bill grows every quarter, you have reached the limits of the off-the-shelf product. At that point, moving the process that wastes the most time to custom software, rather than replacing the whole system at once, keeps risk and cost low.
- 06
Doki's impartial note
We do not recommend custom software for every need; having something built from scratch that a good off-the-shelf product can already do is often an unnecessary cost. We recommend custom software for the processes that make your business different and for integrations that off-the-shelf products struggle with. We can review your processes and the products you use together and clarify what should be rented, what should be built and in what order to proceed.
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