Development Approach

custom-software vs saas-solution

Compare custom software and SaaS solutions based on their approach. Discover which solution best fits your business needs.

5
custom-software
vs
3
saas-solution
Quick Verdict

Custom software is better for specific needs, while SaaS solutions offer flexibility and lower upfront costs.

Detailed Comparison

A side-by-side analysis of key factors to help you make the right choice.

Factor
custom-softwareRecommended
saas-solutionWinner
initial-cost
higher-upfront
low-monthly
long-term-cost
lower-tco
accumulates-over-time
customization
fully-tailored
limited-configuration
integration
seamless-custom
api-dependent
time-to-deploy
weeks-to-months
immediate
ownership
full-ownership
vendor-lock-in
scalability
unlimited-control
tier-based-limits
maintenance
self-managed
vendor-handled
Total Score5/ 83/ 80 ties
initial-cost
custom-software
higher-upfront
saas-solution
low-monthly
long-term-cost
custom-software
lower-tco
saas-solution
accumulates-over-time
customization
custom-software
fully-tailored
saas-solution
limited-configuration
integration
custom-software
seamless-custom
saas-solution
api-dependent
time-to-deploy
custom-software
weeks-to-months
saas-solution
immediate
ownership
custom-software
full-ownership
saas-solution
vendor-lock-in
scalability
custom-software
unlimited-control
saas-solution
tier-based-limits
maintenance
custom-software
self-managed
saas-solution
vendor-handled

Key Statistics

Real data from verified industry sources to support your decision.

55%

custom-software-roi

custom-software-roi (2025)
42%

saas-roi

saas-roi (2025)
47%

unused-saas-licenses

unused-saas-licenses (2025)
$21M

annual-saas-waste

annual-saas-waste (2025)
72%

series-a-custom-software

series-a-custom-software (2025)

All statistics are from reputable third-party sources. Links to original sources available upon request.

When to Choose Each Option

Clear guidance based on your specific situation and needs.

Choose custom-software when...

  • You have specific needs for your software.
  • Your projects require tailored solutions.
  • You prefer full control over development.

Choose saas-solution when...

  • You want flexibility and lower costs.
  • Your needs are more general.
  • You prefer quick deployment.

Our Recommendation

Custom software is better for specific needs, while SaaS solutions offer flexibility and lower upfront costs.

Frequently Asked Questions

Common questions about this comparison answered.

Yes. Over 5 years, that 13-point difference compounds significantly. For a €100,000 project, you'd see €13,000 more value from custom software. Plus, custom eliminates the 47% waste from unused SaaS features that organizations typically pay for.
SaaS wins for speed-to-start. But consider: a 4-week MVP sprint gets you a custom solution running in 30 days. For commodity functions where customization isn't needed, SaaS makes sense. For anything strategic, the short wait for custom pays dividends.
Add: monthly fees × users × 60 months, tier upgrades as you grow, integration costs, training, and the opportunity cost of workarounds for missing features. Research shows SaaS TCO runs 72% higher than comparable custom solutions over 5 years.

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