The verdict in three sentences
The total cost of ownership (TCO) of business software over 3 years is 1.5 to 3 times higher than the sticker price. A SaaS comes to about 1,500,000 FCFA over 36 months, a build to about 2,800,000 FCFA, but the build reverses the trend beyond year 3 or 4. Comparing on entry cost alone is the most common budgeting mistake in 2026.
TCO breakdown over 36 months
Hidden line items (training, integrations, migration) often weigh 30 to 40% of the total. Here is a typical SME case.
| Cost item | SaaS (36 months) | Build (36 months) |
|---|---|---|
| License / development | 1,080,000 | 2,000,000 |
| Hosting | included | 360,000 |
| Maintenance / support | included | 0 (yr 1) then 720,000 |
| Team training | 120,000 | 200,000 |
| Integrations (mobile money, accounting) | 150,000 | 250,000 |
| Data migration | 100,000 | 150,000 |
| 36-month total | ~1,550,000 | ~2,830,000 |
Break-even: when the build catches up to SaaS
SaaS costs less upfront but grows linearly. The build has an initial peak then stabilizes.
| Year | Cumulative SaaS (FCFA) | Cumulative build (FCFA) |
|---|---|---|
| Yr 1 | 550,000 | 2,300,000 |
| Yr 2 | 1,050,000 | 2,550,000 |
| Yr 3 | 1,550,000 | 2,830,000 |
| Yr 4 | 2,050,000 | 3,110,000 |
| Yr 5 | 2,550,000 | 3,390,000 |
| Yr 6 | 3,050,000 | 3,670,000 |
The crossover happens around year 7-8 for stable usage: in pure TCO the build is only relevant on a long horizon or if business specificity avoids losses.
Mini case study
Aminata, CEO of a distribution SME in Abidjan, hesitates between a SaaS at 30,000 FCFA/month and a build at 2,000,000 FCFA. Over 3 years the SaaS costs her 1,550,000 FCFA all-in, the build 2,830,000 FCFA. The SaaS wins over 3 years. But her delivery-route tracking need exists in no SaaS: the build saves her 900,000 FCFA/year in optimized trips, which repays the 1,280,000 FCFA gap in 17 months.
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FAQ
What are the hidden costs of business software?
Training, integrations, data migration and version upgrades. These items often represent 30 to 40% of TCO and are almost always underestimated in quotes.
Is SaaS always cheaper over 3 years?
In pure TCO, yes in most cases: about 1,550,000 FCFA versus 2,830,000 FCFA for a build. The exception is a very specific need that avoids operational losses larger than the cost gap.
How to reduce a build's TCO?
Pool maintenance, host on affordable local infrastructure and train an internal lead. You can thus cut the maintenance item from 50-80,000 FCFA/month to under 40,000 FCFA/month.
When does a build become profitable in TCO?
Purely on cost, around year 7-8. Sooner if the software avoids quantifiable operational losses, as with a business need not found in any SaaS.
Let's talk about your project. We'll calculate your SaaS vs build TCO over 3 years, item by item. 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.
