The verdict in three sentences
A vertical SaaS always wins on time-to-market (live in days) and low entry cost. Custom becomes cheaper cumulatively after 3-4 years and removes vendor lock-in. The smart 2026 move: start on a SaaS, measure real business fit, then internalise as custom if the gap widens.
Cumulative cost over 5 years
Profile: services SME, 40 users, Dublin, 2026 order of magnitude, ex-VAT.
| Year | Vertical SaaS (EUR 400/month) | Custom (EUR 80,000 + 16 %/yr) |
|---|---|---|
| Year 1 | EUR 4,800 | EUR 80,000 |
| Year 2 | EUR 9,600 cumul. | EUR 92,800 cumul. |
| Year 3 | EUR 14,400 cumul. | EUR 105,600 cumul. |
| Year 4 | EUR 19,200 cumul. | EUR 118,400 cumul. |
| Year 5 | EUR 24,000 cumul. | EUR 131,200 cumul. |
At this SaaS price custom never catches up over 5 years. But the picture changes once the SaaS bills per seat and headcount grows: at EUR 600/month per tier and 80 users, the SaaS tops EUR 40,000/yr and the switch falls around year 3.
Lock-in and business fit
Cost is not the whole story: the strategic question is control over your core-business tool.
| Criterion | Vertical SaaS | Custom |
|---|---|---|
| Time-to-market | Days to weeks | 3-6 months |
| Entry cost | EUR 150-600/month | EUR 40,000-120,000 |
| Exit/lock-in cost | High (data, formats) | None (proprietary code) |
| Business fit | 60-85 % | 95-100 % |
| Evolvability | Vendor roadmap | Your roadmap |
| Dependency | Strong | Weak |
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Mini case study
Patrick, operations director of a 50-person logistics SME in Dublin, pays a vertical SaaS EUR 550/month, i.e. EUR 6,600/yr. But the vendor raises prices 12 %/yr and refuses a critical route-planning feature. Over 5 years the SaaS cumulates to around EUR 42,000 with the rises. The Kolonell custom quote: EUR 75,000 + EUR 12,000/yr = EUR 135,000 over 5 years. Custom stays pricier... except the missing feature costs him 6 hours/week of manual replanning, i.e. about EUR 15,000/yr in labour: factor that gain in and custom becomes profitable from year 4. Verdict: the differentiating feature justifies the investment.
FAQ
Is vertical SaaS really cheaper? Over the first 2-3 years, yes, almost always in 2026. It is cumulatively, with annual rises (8-15 %) and per-seat billing, that the maths flips.
How do I measure business fit? List your critical processes and rate which the SaaS covers 100 %, partially, or not at all. Below 80 % coverage on your differentiating processes, custom is justified.
What if my SaaS vendor shuts down or is acquired? That is lock-in risk: costly migration, proprietary formats, a shifting roadmap. A clear data-export clause limits the risk without cancelling it.
Can I start on SaaS then move to custom? That is the recommended 2026 strategy: start fast on SaaS, learn your real needs, then invest in custom once ROI is proven.
How long for custom? Budget 3-6 months for a medium-complexity business tool, versus a few days to switch on a SaaS. That delay is custom's main hidden cost.
Let's scope your project. Tell us your current SaaS, its monthly cost, your headcount and your missing features, and we will price the custom tipping point with a 5-year cumulative view. 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.
