The verdict in three sentences
For 25 staff, a vertical vendor subscription runs around 22 000 EUR/year all-in, i.e. 88 000 EUR over 4 years, never becoming an asset. A custom platform is billed 48 000 to 75 000 EUR + 14 %/year maintenance, and the tipping point lands around year 3. Beyond that, custom wins on TCO while removing vendor lock-in and improving margin per client file.
Three-year total cost of ownership
The real trade-off is TCO, not the sticker price. Here is the 2026 order of magnitude for a 25-person firm.
| Item | Vertical vendor | Custom |
|---|---|---|
| Upfront cost | 0-3 000 EUR | 48 000-75 000 EUR |
| Subscription/license yr 1 | 22 000 EUR | 0 EUR |
| Maintenance yr 1 | included | 6 700-10 500 EUR |
| Total yr 1 | 22 000-25 000 EUR | 54 700-85 500 EUR |
| Total yr 2 | 44 000-47 000 EUR | 61 400-96 000 EUR |
| Total yr 3 | 66 000-70 000 EUR | 68 100-106 500 EUR |
| Code ownership | No | Yes |
From year 3, custom TCO catches up to and then exceeds the vertical in nominal terms, but the gap is repaid by margin per file.
Vendor lock-in and gains per file
The invisible cost of the vertical is lock-in: price hikes, add-on modules, hard migration. Custom flips the balance of power.
| Criterion | Vertical vendor | Custom |
|---|---|---|
| Annual price hike | 3-8 %/yr | 0 % (owned build) |
| Bank/payroll connectors | +2 000-5 000 EUR/yr | included in build |
| GDPR compliance | delegated | controlled, EU hosting |
| Migration/reversibility | costly | code owned |
| Margin gained per file | baseline | +8-15 % (automation) |
Mini case study
Claire, partner at a 25-person Dublin firm, compares 22 000 EUR/year subscription to a custom platform of 62 000 EUR + 8 700/year maintenance. Over 5 years the vertical costs 110 000 EUR, custom 96 800 EUR, a 13 200 EUR gap in favor of custom. More importantly, automated bank reconciliation frees 5 hrs/week per staffer: 5 × 25 × 45 = 5 625 hrs/year, valued at 38 EUR, i.e. 213 750 EUR of freed capacity. The custom platform becomes a margin engine.
FAQ
Need a professional website?
Kolonell builds websites that attract clients, optimized for the Sénégalese market. Free quote in 2 minutes.
When does custom become profitable?
On pure TCO, the tipping point lands between year 3 and year 4 for a 25-person firm. Factoring in ROI (hours and margin per file), it is often profitable from year 1.
How do you manage vendor lock-in?
Custom removes price hikes (3 to 8 %/year) and add-on module charges. You own the code and can switch maintenance provider, guaranteeing reversibility.
Are bank and payroll connectors included?
In custom, yes, integrated into the build. With a vendor, they are often billed 2 000 to 5 000 EUR/year extra depending on the number of feeds.
How do you guarantee GDPR compliance?
EU hosting, encryption, processing records and access management. A custom build gives you full control, unlike a delegated cloud solution.
What is a realistic maintenance budget?
About 14 %/year of the build, i.e. 6 700 to 10 500 EUR for a 48 000-75 000 EUR platform. It covers regulatory changes, security and new connectors.
Let's scope your project. Tell us your headcount, priority connectors (banking, payroll) and an indicative 48-75k EUR budget. 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.
