The verdict in three sentences
For a 300-employee mid-sized company with 100 business users, a SaaS at EUR 45 per user per month costs EUR 54,000 a year, indefinitely. A custom build requires EUR 80,000 to 150,000 then 15% a year in maintenance, with break-even between 2 and 3 years. If the SaaS forces Excel workarounds estimated at 1 FTE, custom becomes profitable from year two.
Total cost of ownership over 5 years
An honest comparison uses cumulative cost, not entry price. Assumptions: custom app at EUR 110,000, 15% maintenance (EUR 16,500 a year) from year 2, hosting EUR 6,000 a year. SaaS: 100 licences at EUR 45, 5% annual price increase, EUR 15,000 initial integration.
| Year | SaaS cumulative | Custom cumulative | SaaS + 1 workaround FTE | Gap custom vs SaaS + FTE |
|---|---|---|---|---|
| Year 1 | EUR 69,000 | EUR 116,000 | EUR 119,000 | +EUR 3,000 for custom |
| Year 2 | EUR 125,700 | EUR 138,500 | EUR 225,700 | -EUR 87,200 |
| Year 3 | EUR 185,200 | EUR 161,000 | EUR 335,200 | -EUR 174,200 |
| Year 4 | EUR 247,700 | EUR 183,500 | EUR 447,700 | -EUR 264,200 |
| Year 5 | EUR 313,400 | EUR 206,000 | EUR 563,400 | -EUR 357,400 |
Without workarounds, break-even falls between year 2 and year 3. With one FTE (about EUR 50,000 loaded) reprocessing exports, the gap becomes massive from year 2. That is the number the CIO must measure before any decision.
Decision grid: when each option wins
Cost is not enough. The table sums up the criteria that tip the balance in the mid-sized companies we work with.
| Criterion | Off-the-shelf SaaS wins if | Custom wins if |
|---|---|---|
| Process | Standard (CRM, payroll, expenses) | Differentiating, specific to your business |
| Number of users | Under 30 | Over 80, and growing |
| Integrations | 1 or 2 native connectors suffice | ERP, MES, in-house WMS, specific flows |
| Go-live deadline | Under 2 months required | 4 to 6 months acceptable |
| Data | Vendor hosting accepted | Sovereignty, local or on-premise hosting |
| Change requests | Vendor roadmap is enough | 10 to 20 change requests a year |
| Internal skills | No team to steer | Product owner available 1 to 2 days a week |
A middle path exists: keep the SaaS for the standard core and build a custom module at EUR 30,000 to 60,000 connected by API on the differentiating scope.
Risks to include in the business case
SaaS side: unilateral price increases (5 to 15% a year seen in 2026), roadmap dependency, data portability. Custom side: scope creep, vendor dependency, technical debt. Require source code ownership, delivered technical documentation and a capped maintenance package. A 3 to 4-week scoping phase (EUR 8,000 to 15,000) sharply reduces the risk of drift.
Mini case study
Nathalie, CIO of a 300-employee packaging manufacturer near Lille, uses a production management SaaS for 100 users at EUR 45 a month. Teams export to Excel daily to manage shop-floor priorities: one planner FTE spends most of their time on it.
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- SaaS + workaround: 54,000 + 50,000 = EUR 104,000 a year
- Custom: EUR 120,000 build, then EUR 18,000 maintenance and EUR 6,000 hosting a year
- 3-year cost: SaaS + FTE EUR 312,000 versus custom EUR 174,000 (maintenance from year 2)
Estimated 3-year saving: EUR 138,000, and the planner is reassigned to flow optimisation.
FAQ
What is the typical break-even between SaaS and custom?
Between 2 and 3 years for 100 users at EUR 45 a month. It drops below 18 months once a workaround FTE is eliminated.
Is 15% annual maintenance realistic?
Yes, it is the 2026 norm: 15 to 20% of build cost covers fixes, security updates and small enhancements.
How long does a custom app take to deliver?
Allow 4 to 6 months for a first usable version, then releases every 2 to 4 weeks.
What if the vendor disappears?
With code ownership, documentation and a standard stack, another vendor can take over in 2 to 4 weeks.
Can we start small?
Yes: an MVP at EUR 40,000 to 60,000 on the costliest process validates the gain before expanding.
Let's scope your project. Share your user count, current licences and workarounds: we will calculate your break-even and price a scoping phase with an indicative budget and timeline. 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.
