The verdict in three sentences
Under 20 users, a vertical licence (EUR 25-90/user/month) is the fastest, lowest-risk path with compliance kept current. Between 20 and 60 users with specific processes, a custom build (EUR 35,000-80,000) starts to win on a 3-5 year horizon. The decision hinges on one number: the value of hours saved versus the maintenance you take on.
Vertical licence vs custom build
The Berlin market is mature but standardised. Figures below are 2026 order-of-magnitude estimates.
| Criterion | Vertical licence | Custom build |
|---|---|---|
| Entry cost | EUR 0-5,000 | EUR 35,000-80,000 |
| Recurring cost | EUR 25-90/user/month | Maintenance EUR 800-2,500/month |
| Compliance updates | Vendor-managed | Your responsibility |
| Workflow fit | Low | Total |
| Vendor lock-in | High | Low |
| Rollout | 2-6 weeks | 12-20 weeks |
The licence carries compliance and speed. Custom carries fit and independence: an asset you own rather than rent, worth it when your productivity depends on a proprietary workflow.
3-year TCO for 25 users and break-even
Over 36 months and 25 users, here is how total cost compares.
| Line item | Vertical licence | Custom build |
|---|---|---|
| Setup / development | EUR 3,000 | EUR 65,000 |
| Subscription 3 yrs (25 users) | EUR 51,750 | EUR 0 |
| Maintenance 3 yrs | included | EUR 59,400 |
| Training | EUR 5,000 | EUR 9,000 |
| 3-year total | EUR 59,750 | EUR 133,400 |
The licence is cheaper on paper. Break-even flips only when hours saved exceed the gap: if custom removes 25 minutes/day/user, that is 25 x 0.42 h x EUR 50 x 220 days = EUR 115,000/year of freed capacity — enough to justify the build within the first two years.
Need a professional website?
Kolonell builds websites that attract clients, optimized for the Sénégalese market. Free quote in 2 minutes.
Mini case study
Thomas, COO of a 25-person services SME in Berlin. His teams lose 25 minutes/day each re-entering data across two tools. At EUR 50/h loaded, that is EUR 115,000/year. A custom build at EUR 65,000 plus EUR 19,800/year maintenance that removes 65 % of that frees EUR 75,000/year. Payback in about 14 months, then a durable net gain versus the recurring licence cost.
FAQ
How much does a vertical licence cost in Berlin in 2026? Budget EUR 25-90/user/month depending on the module depth, usually with a EUR 0-5,000 setup fee and a 12-month commitment.
When does a custom build beat a licence? When the value of hours saved (often EUR 100,000+/year at 25 users) exceeds the development plus maintenance gap — typically above 20 users with specific processes.
Who handles compliance in a custom build? You do, via your maintenance contract: budget EUR 800-2,500/month to keep the tool secure and up to date, versus vendor-managed updates in a licence.
How long to deploy a custom build? Between 12 and 20 weeks, with interim releases from week 6. A vertical licence is live in 2-6 weeks.
Can we start on a licence and move to custom later? Yes — many SMEs run a licence while building a custom layer, then migrate module by module to avoid a risky big-bang switch.
Let's scope your project. Send us your user count, current tool and your two costliest time drains, and we cost licence vs custom with 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.
