The verdict in three sentences
Below 30 users, off-the-shelf SaaS is almost always cheaper and faster to deploy. Above that, the per-seat subscription becomes a growing tax on your headcount, whereas custom software is an amortized capex asset you actually own. The real question is not the signing price but the total cost of ownership (TCO) over five years and your dependence on a single vendor.
Two opposite economic models
SaaS is an operating expense (opex): you pay per user per month, indefinitely, and the price rises with your headcount and vendor increases (often 5 to 12 % per year in 2026). Custom software is a capital investment (capex): you pay once to build, then a much smaller maintenance fee, and you own the source code.
| Criterion | Off-the-shelf SaaS | Custom software |
|---|---|---|
| Entry cost | 0 to 5,000 EUR (setup) | 40,000 to 120,000 EUR |
| Recurring cost | 30 to 150 EUR/user/month | 8,000 to 18,000 EUR/year (maintenance) |
| Time to launch | 2 to 6 weeks | 3 to 6 months |
| Code ownership | No (tenant) | Yes (balance-sheet asset) |
| Customization | Limited to options | Unlimited |
| Vendor dependence | High (lock-in) | None |
| Data portability | Variable, sometimes paid | Full |
Five-year TCO, in figures
Take a team of 60 users. SaaS at 60 EUR/month costs 60 x 60 x 12 = 43,200 EUR per year, or 216,000 EUR over five years, before price hikes. Custom software at 80,000 EUR plus 12,000 EUR annual maintenance comes to 80,000 + (12,000 x 5) = 140,000 EUR over the same period.
| Horizon | SaaS 60 users at 60 EUR | Custom 80,000 EUR + maintenance |
|---|---|---|
| Year 1 | 43,200 EUR | 92,000 EUR |
| Year 2 (cumulative) | 86,400 EUR | 104,000 EUR |
| Year 3 (cumulative) | 129,600 EUR | 116,000 EUR |
| Year 4 (cumulative) | 172,800 EUR | 128,000 EUR |
| Year 5 (cumulative) | 216,000 EUR | 140,000 EUR |
| Break-even | ~end of year 2 | crossover around 28-32 users |
The break-even sits around 30 to 40 users depending on your SaaS rate: above that, custom wins from year 3.
Need a professional website?
Kolonell builds websites that attract clients, optimized for the Sénégalese market. Free quote in 2 minutes.
Mini case study
Marc, CFO of a B2B distribution SME in Nantes, pays 72 EUR per month for a SaaS CRM across 55 sales reps, or 47,520 EUR per year. Over five years that is 237,600 EUR, before the announced 8 % annual increase. A custom CRM integrated with his ERP is quoted at 85,000 EUR plus 13,000 EUR maintenance per year, or 150,000 EUR over five years. Estimated net saving: 87,600 EUR, plus ownership of the tool and the end of vendor lock-in.
FAQ
What is the exact break-even between SaaS and custom? It depends on the per-seat price: at 30 EUR/month you need ~70 users to justify 80,000 EUR; at 100 EUR/month around 20 is enough. As a 2026 order of magnitude, expect 30 to 40 users.
Is custom really cheaper long term? Over five years and past the break-even, yes: in our example, 140,000 EUR versus 216,000 EUR. Custom is also a balance-sheet asset, unlike a subscription.
How much does custom software maintenance cost? Budget 12 to 20 % of the build cost per year, or 10,000 to 20,000 EUR for an 80,000 EUR project. That is far below the cumulative SaaS bill of an average team.
What if my needs change fast? SaaS forces the vendor's roadmap; custom follows yours. A major custom change typically costs 5,000 to 25,000 EUR one-off, with no subscription increase.
How do I avoid vendor lock-in? Demand a full data export and check exit terms before signing. A vendor charging for departure is a strong signal in favor of custom.
Let's scope your project. Give us your user count, indicative budget and target timeline, and we will model your five-year TCO and the exact break-even. 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.
