The verdict in three sentences
Vertical SaaS remains the best choice as long as your process looks like your competitors' and you have fewer than 20 to 25 users. Beyond 45 users and three subscriptions that do not talk to each other, a custom build at EUR 17,500 to 41,000 (about USD 20,000 to 47,000) pays off with break-even between 3 and 5 years. The decision should rest on a weighted matrix, not on the subscription price alone.
The real cost of three poorly integrated subscriptions
The situation is common in service SMEs in Singapore: an international CRM, a project management tool and a local invoicing package. Each charges EUR 25 to 60 per user per month. Teams re-enter clients three times, Excel exports act as the bridge and nobody has a consolidated view.
The visible cost is the subscription. The hidden cost is re-keying, errors and vendor dependency: vendors raise prices by 5 to 10% a year and often bill in foreign currency, which exposes the SME to exchange-rate swings.
| Item | Vertical SaaS (3 tools, 45 users) | Custom application |
|---|---|---|
| Upfront investment | EUR 0 to 2,400 (configuration) | EUR 17,500 to 41,000 |
| Annual recurring cost | EUR 13,000 to 32,000 | Maintenance 15 to 20% of build + hosting EUR 750 to 1,750 |
| Annual price increase | 5 to 10%, in foreign currency | Controlled, in your currency |
| Integration between modules | Zapier or Make connectors, EUR 450 to 1,750 per year | Native |
| Time to go live | 2 to 6 weeks | 4 to 7 months |
| Data ownership | Hosted by the vendor, export sometimes partial | The SME's own PostgreSQL database |
| Exit cost | Export, clean-up, migration: EUR 2,400 to 7,500 | Low, source code handed over |
The 8-criterion decision matrix
Score each criterion from 1 to 5 for each option, multiply by the weight, then compare totals. A gap under 10% argues for SaaS, which is simpler to start. A gap above 20% in favour of custom justifies the investment.
| Criterion | Weight | Question to ask | Leans towards |
|---|---|---|---|
| Process specificity | 20% | Is the way we work a competitive advantage? | Custom if yes |
| Number of users | 15% | More than 30 users within 3 years? | Custom beyond 30 to 40 |
| Total cost over 5 years | 15% | Cumulative subscriptions above 1.5 times the build? | Custom if yes |
| Required integrations | 10% | More than 3 flows between tools? | Custom |
| Urgency | 10% | Operational need within 2 months? | SaaS |
| Vendor dependency | 10% | What if the vendor doubles prices or shuts down? | Custom |
| Compliance and data | 10% | PDPA obligations, local hosting required by a client? | Custom |
| Internal capacity | 10% | Do we have someone to manage a supplier? | SaaS if not |
The most underestimated criterion is exit cost. Leaving a SaaS after 4 years means exporting data that is often incomplete (attachments, status histories), cleaning it and retraining teams. Budget EUR 2,400 to 7,500, even if you stay within the SaaS world.
The hybrid scenario, often the most profitable
Many SMEs are better off keeping standard SaaS for commoditised functions (email, statutory accounting, payroll) and building the business core in-house: client files, scheduling, pricing. The budget then drops to EUR 12,000 to 23,500, and the custom app connects to the SaaS tools via API.
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Wei Ling, managing director of a 45-person engineering consultancy in Singapore, pays for three subscriptions averaging EUR 28 per user per month: 45 × 28 × 12 = EUR 15,120 per year. The custom build quote is EUR 32,000, with 18% maintenance (EUR 5,760) and EUR 1,060 of hosting per year, i.e. EUR 6,820 recurring. Annual savings reach EUR 8,300. Break-even is 32,000 / 8,300, i.e. 3.9 years, moving closer to 3 years if vendors apply their usual 7% annual increase. Wei Ling chooses a hybrid: accounting stays on SaaS and the investment drops to EUR 25,000.
FAQ
From how many users does custom development pay off?
As a 2026 order of magnitude, the threshold sits between 30 and 40 paying users for SaaS at EUR 25 per month or more. Below 20 users, break-even often exceeds 6 years.
Is custom development riskier?
It is if the specification is vague. A project split into 6 to 8 week increments, with a usable first version after 3 months, caps the risk at 20 to 30% of the committed budget.
What happens to the app if the supplier disappears?
Require delivery of the source code, documentation and a Git repository in the SME's name. Another supplier can take over after a 5 to 10 day audit.
Can the project be paid in instalments?
Yes, milestone billing is standard: 30% on order, 40% spread over intermediate deliveries, 30% at final acceptance.
How long does migration from three SaaS tools take?
Allow 4 to 7 months in total, including 4 to 6 weeks to export, de-duplicate and migrate data from the three tools.
Let's scope your project. Share your list of subscriptions and users: we will calculate your break-even point, price the custom or hybrid option and propose an incremental schedule. 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.
