The verdict in three sentences
Below 20 users with standard processes, an off-the-shelf suite is unbeatable on five-year total cost of ownership. Above 30 users, or as soon as more than 40 % of your flows are non-standard, custom software pays off and makes you the owner of the tool. The real risk is not the purchase price, it is vendor lock-in and customisations that explode with every version upgrade.
The two cost models in 2026
An off-the-shelf suite charges a monthly per-user subscription plus a one-off integration project. Custom is a heavy upfront investment but carries no recurring licence. 2026 orders of magnitude for a 25-person London SME:
| Item | Off-the-shelf suite | Custom development |
|---|---|---|
| Licence / user / month | EUR 25 to 70 | EUR 0 (you own the code) |
| Initial integration | EUR 10,000 to 40,000 | included in the build |
| Application build | — | EUR 60,000 to 180,000 |
| Hosting / year | included or EUR 3,000 | EUR 4,000 to 12,000 |
| Maintenance / year | 15 % of licence | 15 to 20 % of build |
| Time to launch | 6 to 12 weeks | 4 to 8 months |
| Vendor lock-in | high | none |
A EUR 40 licence looks trivial, but times 25 users over 60 months it weighs EUR 60,000 before any integration.
Five-year TCO compared
Let us project total cost of ownership for 25 users: an off-the-shelf suite at EUR 45/user/month with a EUR 25,000 integration, versus custom at EUR 110,000 amortised.
| Year | Off-the-shelf (cumulative) | Custom (cumulative) |
|---|---|---|
| Year 1 | EUR 41,500 | EUR 128,000 |
| Year 2 | EUR 58,000 | EUR 146,000 |
| Year 3 | EUR 74,500 | EUR 164,000 |
| Year 4 | EUR 91,000 | EUR 182,000 |
| Year 5 | EUR 107,500 | EUR 200,000 |
At 25 users, off-the-shelf stays cheaper over five years. But rerun it at 50 users: the suite licence climbs to EUR 215,000 cumulative while custom barely moves. That is where the curve inverts.
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Mini case study
Mark, director of an industrial trading SME in London, is torn over his 38 staff. An off-the-shelf suite at EUR 50/user/month costs him EUR 22,800/year in licences, EUR 114,000 over five years, plus EUR 30,000 integration: EUR 144,000. A custom ERP built for his multi-supplier quotation process is priced at EUR 130,000 plus EUR 9,000/year hosting and maintenance, so EUR 175,000 over five years. Off-the-shelf wins by EUR 31,000... until Mark realises his three critical customisations break with every version and cost EUR 18,000/year to rebuild. Factored in, custom takes the lead from year 4.
FAQ
What does an off-the-shelf suite really cost for 25 users in 2026 ? Budget EUR 25 to 70/user/month depending on modules, roughly EUR 13,500 to 21,000/year in licences, plus a one-off integration of EUR 10,000 to 40,000.
From how many users does custom become profitable ? The tipping point usually sits around 30 to 40 users over five years, or earlier if your processes stray far from the standard.
Does custom remove all recurring costs ? No: budget 15 to 20 % of the build per year in maintenance and evolutions, plus EUR 4,000 to 12,000 hosting, but zero per-user licence.
How long to go live ? Off-the-shelf deploys in 6 to 12 weeks; custom development takes 4 to 8 months depending on scope.
Who owns the data and code with custom ? You do. Unlike SaaS, there is no vendor lock-in and no risk of imposed price hikes.
Let's scope your project. Give us your user count, your non-standard processes and your target budget: we return a costed five-year TCO, custom vs off-the-shelf. 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.
