The verdict in three sentences
A SaaS subscription is unbeatable while you have few users and a standard need, but every added seat eats your margin forever. Custom software requires a heavy upfront investment (40,000-100,000 EUR) but caps your cost and makes you the owner of the tool and the data. The real tipping point sits around 20-30 users over 4 years: beyond that, custom is almost always more profitable.
The two models head to head
SaaS bills per user per month: predictable, no capex, but recurring and prone to price hikes (often 5-12 % per year in 2026). Custom software is an asset: you pay once for the build, then a controlled annual maintenance. The question isn't "which is cheaper today" but "which is cheaper over the tool's lifetime".
| Criterion | SaaS subscription | Custom software |
|---|---|---|
| Entry cost | 0-2,000 EUR setup | 40,000-100,000 EUR |
| Recurring cost | 30-80 EUR/user/month | Maintenance 8-15 %/year |
| Customization | Limited to options | Total, fits your process |
| Data ownership | With the vendor | With you |
| Hike risk | High (5-12 %/year) | None on the licence |
| Dependency | Strong (lock-in) | Low |
| Time to launch | Days | 2-4 months |
Tipping point by size and duration
The decisive math: cumulative SaaS cost vs custom investment + maintenance. Take a SaaS at 50 EUR/user/month and a build at 60,000 EUR with 12 % annual maintenance (7,200 EUR/year).
| Users | SaaS 4 yrs | Custom 4 yrs | Winner |
|---|---|---|---|
| 5 users | 12,000 EUR | 88,800 EUR | SaaS |
| 15 users | 36,000 EUR | 88,800 EUR | SaaS |
| 25 users | 60,000 EUR | 88,800 EUR | SaaS (edge) |
| 40 users | 96,000 EUR | 88,800 EUR | Custom |
| 60 users | 144,000 EUR | 88,800 EUR | Custom |
| 100 users | 240,000 EUR | 88,800 EUR | Custom |
Beyond 40 users, or as soon as SaaS exceeds 15,000 EUR/year, custom becomes a defensible choice. In West Africa, where SaaS licences are paid in hard currency, that threshold arrives even faster in CFA francs.
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Mini case study
Thomas, IT director of an 8-branch estate agency network in Nantes, pays a SaaS CRM at 55 EUR/user/month for 45 staff, i.e. 29,700 EUR/year. Over 5 years that's 148,500 EUR, before any price hikes. A custom CRM matching his mandate process would cost 70,000 EUR build + 8,400 EUR/year maintenance, i.e. 112,000 EUR over 5 years. Saving: 36,500 EUR, plus total data control and the end of annual hikes. Break-even lands in year 3.
FAQ
Isn't SaaS always less risky? It's less risky at entry (no capex) but riskier long-term: lock-in, price hikes, feature sunsets. An owned tool removes all three once delivered.
How long to pay back custom software? Usually 2 to 4 years depending on user count. Beyond 40 seats, payback often lands before the end of year 3.
Can we start on SaaS then switch? Yes, it's even recommended: validate the need on SaaS, then internalize into an owned tool when annual cost tops 15,000-20,000 EUR.
Is custom maintenance expensive? Budget 8 to 15 % of the build per year, i.e. 5,000-12,000 EUR for a 60,000 EUR project. Usually well below SaaS recurring cost past 30 users.
Who owns the code of custom software? You do, if the contract states it explicitly. Require a full rights-transfer clause and source-code escrow.
Let's scope your project. Give us your user count and current SaaS cost, and we'll quantify the tipping point and a fitting custom build. 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.
