The verdict in three sentences
In New York in 2026, the rule is simple: custom becomes worthwhile when the SaaS subscription exceeds ~EUR 15,000-25,000/year AND the process is a competitive advantage. Below that, or for a standard need (payroll, accounting, generic CRM), SaaS remains the best choice. The decision turns on the 5-year TCO and the cost of lock-in, not the first month's headline price.
The real calculation: 5-year TCO
The classic trap is comparing a monthly subscription to a build quote. You must compare full 5-year costs, maintenance included.
| Item | Off-the-shelf SaaS | Custom |
|---|---|---|
| Upfront cost | EUR 5,000-15,000 setup | EUR 40,000-90,000 |
| Annual cost | EUR 18,000-30,000/year | Maintenance EUR 8,000-15,000/year |
| Specific evolutions | Often impossible | Included over time |
| Exit cost (lock-in) | EUR 10,000-40,000 | None (you own the code) |
| 5-year TCO (estimate) | ~110-180k EUR | ~80-165k EUR |
| Ownership & control | Vendor | You |
These are 2026 order-of-magnitude figures. From 20-25 users and a subscription > EUR 20,000/year, custom often catches up with SaaS over 5 years while removing the risk of imposed price hikes.
2026 decision grid
Use these criteria to decide quickly.
| Question | Lean SaaS | Lean custom |
|---|---|---|
| Is the process standard? | Yes | No, it is an advantage |
| Cumulative annual subscription | < EUR 15,000 | > EUR 25,000 |
| Need for specific integrations | Low | High |
| Sensitivity to lock-in | Low | High |
| Usage horizon | < 3 years | > 5 years |
| User volume | < 15 | > 25 |
If most of your answers lean right, custom is probably the right call; otherwise, stay on SaaS and reassess each year.
Mini case study
Nadia, COO of a logistics SME in New York (60 staff), pays for 3 vertical SaaS tools at EUR 26,000/year, yet cannot automate her route-tracking process, which is precisely her competitive edge. A custom build at EUR 72,000 + maintenance EUR 12,000/year gives a 5-year TCO of ~EUR 132,000, against ~EUR 130,000 for the SaaS (with a likely +5%/year price rise). At equal cost, she gains full control of her process, no lock-in, and productivity gains estimated at ~EUR 18,000/year from automation impossible in SaaS.
Need a professional website?
Kolonell builds websites that attract clients, optimized for the Sénégalese market. Free quote in 2 minutes.
FAQ
When does custom become worthwhile versus SaaS?
In 2026, when the cumulative annual subscription exceeds ~EUR 15,000-25,000 AND the process differentiates your company. Below that, or for a standard need, SaaS stays cheaper.
How do I estimate the cost of lock-in?
It is the migration cost if you must leave the SaaS: data export, reconfiguration, training, dual running. Expect EUR 10,000 to 40,000 depending on volume, an item often left out of TCO.
Is custom riskier?
Not if the project is batched with an experienced studio. Risk is managed via an MVP, short deliveries and clear maintenance; the real SaaS risk is dependence and imposed hikes.
Can we combine both approaches?
Yes, frequently: SaaS for standard functions (payroll, accounting) and custom for the differentiating core business. That is often the most economically rational solution.
Over what horizon should I reason?
At least 5 years. SaaS looks cheaper at 1 year, but custom becomes competitive from year 3-4 thanks to maintenance below the subscription and no lock-in.
Let's scope your project. Share your current SaaS subscriptions, your specific processes and your horizon, and we will build the 5-year TCO and a costed recommendation together. 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.
