The verdict in three sentences
Below 30-40 users and for standard needs, an off-the-shelf SaaS remains the rational choice. Above 40-60 users, or as soon as a business need is not covered, custom development becomes competitive over 5 years and makes you the owner of your tool. The right question is not the entry price, but the total cost of ownership (TCO) and how well the tool fits your processes.
The 5-year TCO comparison
A SaaS bills per user per month: cost grows linearly with headcount. Custom has a high entry cost, then only maintenance. Here is the calculation for a team of 30 users.
| Line item | Off-the-shelf SaaS (30 users) | Custom |
|---|---|---|
| Initial / build cost | 0 - 5,000 EUR (setup) | 60,000 - 110,000 EUR |
| Licences year 1 | 9,000 EUR (25 EUR/user/month) | 0 EUR |
| Licences 5 years | 45,000 EUR | 0 EUR |
| Annual TMA | Included | 10,000 - 18,000 EUR |
| TMA 5 years | 0 EUR | 50,000 - 90,000 EUR |
| 5-year TCO | ~50,000 EUR | ~110,000 - 200,000 EUR |
| Code ownership | No | Yes |
At 30 users, SaaS wins on pure TCO. But the math flips as soon as headcount rises or the SaaS forces workarounds that cost you lost hours.
The decision grid
TCO does not tell the whole story: the real question is whether the off-the-shelf tool fits your processes or forces you to adapt to it. This grid decides on 6 criteria.
| Criterion | Leans SaaS | Leans custom |
|---|---|---|
| Number of users | < 40 | > 50 |
| Process specificity | Standard | Highly specific |
| Integration needs | Existing connectors | Custom integrations |
| Data ownership | Acceptable with a third party | Critical / sovereign |
| Usage horizon | < 3 years | > 5 years |
| Competitive edge | Non-differentiating | Core business |
Simple rule: if the software IS your competitive edge, you do not rent it. If it is mundane admin support, you buy it off the shelf.
Mini case study
Nadia, COO of a logistics SME (48 users), paid 26 EUR/user/month for a management SaaS, i.e. ~15,000 EUR/year, yet had to maintain two parallel Excel files because the SaaS did not handle her specific routes. Over 5 years, licences reached 75,000 EUR, plus ~6 h/week of re-keying (valued at ~7,800 EUR/year).
Custom development at 95,000 EUR + 14,000 EUR/year TMA gives a 5-year TCO of ~165,000 EUR, versus ~114,000 EUR of licences + re-keying for the SaaS. Custom costs more over 5 years, but eliminates the parallel Excels, becomes an owned asset, and the math reverses from year 6 (0 licence versus 15,000 EUR/year).
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FAQ
At how many users does custom become worthwhile?
The tipping point is generally between 40 and 60 users at 25 EUR/user/month. Below that, SaaS is cheaper; above it, the cumulative licences fund the build.
Is custom riskier?
The main risk is scope creep. You control it by delivering a single-feature MVP first, then iterating. Serious scoping cuts the risk by 60-70 %.
What if my vendor disappears?
With custom, you own the source code and documentation: any team can take over. With a SaaS, a shutdown or a price hike is imposed on you.
Can you combine both?
Yes, it is common: SaaS for mundane functions (payroll, accounting) and custom for the differentiating core, linked by APIs.
How much is annual TMA for custom?
Expect 10,000 to 18,000 EUR/year, roughly 10-15 % of the build, for fixes, security and small evolutions.
Let's scope your project. Give us your user count, your current SaaS and the processes it does not cover, and we will cost the comparative 5-year TCO. Detailed quote within 48 h. WhatsApp +221 77 596 93 33.
Mohamed Bah
Fondateur, Kolonell
Passionate about digital and entrepreneurship in Africa, Mohamed has been helping Sénégalese businesses with their digital transformation since 2020. Founder of Kolonell, he believes every SME deserves a professional and accessible online présence.
