To Buy SaaS or Build Custom Software: A Quick Comparison
Author
Co-founder and CEO at Attract Group
6 minutes read
17 February 2025What should you choose between SaaS and custom software?
On one hand, SaaS offers quick, affordable solutions, but what if it doesn’t fully meet your unique business needs?
On the other, custom software promises perfect alignment with your goals, but the cost and time involved can be daunting.
The wrong choice could lead to wasted resources, inefficiencies, or even stalled growth.
In this article, we’ll break down the pros and cons of SaaS vs. custom software, helping you make a clear, confident decision that aligns with your business goals and budget. Let’s simplify the dilemma and find the best path forward.
What is SaaS?
SaaS, or Software as a Service, is software you use over the internet without needing to install it on your computer. Instead of buying it once, you pay a regular fee (like a subscription) to access it.
Examples include tools like Salesforce for managing customer relationships, Slack for team communication, and HubSpot for marketing and sales.
Since it’s cloud-based, you can use it from anywhere, and the company providing the software takes care of updates and maintenance for you. It’s like renting software instead of owning it!
What is Custom Software?
Custom software is a program built specifically for your business. Unlike ready-made tools, it’s designed to fit your exact needs and workflows.
For example, if your business has unique processes that off-the-shelf software can’t handle, it can be created to match those requirements perfectly.
The process involves:
- Planning: Figuring out what you need.
- Design: Creating a blueprint of how it will work.
- Coding: Building the software.
- Testing: Making sure it works correctly.
- Deployment: Launching it for your team to use.
Main Differences Between SaaS & Custom Software
| Aspect | SaaS | Custom Software |
|---|---|---|
| Definition | Ready-made software accessed online. | Software built specifically for your business. |
| Cost | Subscription-based (monthly/annual fees). | High upfront development cost. |
| Customization | Limited to built-in features. | Fully customizable to your needs. |
| Development Time | Instant setup and use. | Takes months to years to develop. |
| Maintenance | Handled by the provider. | Your responsibility. |
| Scalability | Easy to scale up or down. | Scalable but requires additional work. |
| Control | Limited control (vendor-dependent). | Full control over features and data. |
Key Factors to Consider When Choosing Between SaaS & Custom Software
Choosing between a SaaS product and custom software development can feel tricky. You need to think about a few key factors to make the right decision. Let’s break them down in simple terms.
1. Business Needs
Think about what your business really needs. If you expect to grow quickly, a SaaS solution can scale easily.
For example, tools like Slack or Salesforce let you add more users as your team grows. SaaS products often have built-in features, but they may not adapt to unique workflows.
If your business has specific processes, like custom reporting or industry-specific tools, custom tool can tailor a solution to fit your exact needs. A custom solution ensures everything works the way you want it to.
2. Budget
Cost is a significant consideration.
SaaS solutions typically range from $10 to $500 per user per month. For instance, HubSpot’s marketing tools start at $20 per month, while Salesforce can cost $300 or more per user per month.
In contrast, custom software development can range from $10,000 for a simple app to over $500,000 for complex systems.
SaaS offers lower upfront costs with ongoing monthly payments, whereas custom software requires a larger initial investment but provides full ownership as a long-term solution. Evaluate whether a recurring subscription or a one-time investment better suits your needs.
3. Time
Consider how quickly you need the software. A SaaS solution is ready to use right away. You can sign up for tools like Slack or Trello and start using them in minutes. Custom software development takes time. A simple app might take 3 to 6 months to build, while a complex system could take 1 to 2 years or more. If you need something fast, SaaS might be better. If you can wait, custom development gives you exactly what you want.
4. Control
Think about how much control you want over your software. With a SaaS product, you rely on the provider for updates and features.
For example, if Salesforce changes its pricing or features, you have to adapt. Software development gives you full ownership.
You decide how it works, what features to add, and how to update it. This is especially important if you need a competitive edge or have specific security requirements.
5. Maintenance
Consider who will handle updates and security. A SaaS solution includes maintenance in the subscription. The provider takes care of everything, like updates, backups, and security patches.
With software development, you or your team must handle these tasks. This can take time and effort, but it also means you have full control over how the software evolves.
Pros & Cons of SaaS
When choosing a software solution, it’s important to weigh the pros and cons of SaaS. While SaaS provides many benefits, it also has some limitations. Here’s a quick comparison to help you decide if it’s the right fit for your business.
| Pros of SaaS | Cons of SaaS |
|---|---|
| Cost-effective: No upfront development costs. You pay a subscription fee, which is often lower than building a custom-built solution. | Limited customization: SaaS products are not as flexible as in-house solutions. You may not be able to tailor them to your exact needs. |
| Quick implementation: You can start using the software solution right away. No need to wait for a development team to build it. | Dependency on the SaaS provider: You rely on the vendor for updates, features, and support. If they change pricing or shut down, you’re affected. |
| Easy scalability: Adding more users or features is simple and fast. Most SaaS providers offer plans that grow with your business. | Potential data security concerns: Your data is stored on the provider’s servers. If they have a breach, your information could be at risk. |
| Regular updates and maintenance: The SaaS provider handles updates, backups, and security patches, so you don’t have to. | – |
Pros & Cons of Custom Software
Custom software can be a great choice if your business has unique needs that off-the-shelf solutions can’t meet. However, it also comes with its own set of challenges. Here’s a quick comparison to help you decide if it’s the right fit for your business.
| Pros of Custom Software | Cons of Custom Software |
|---|---|
| Fully tailored to the needs of your business: The custom tool is designed to fit your specific business processes and unique needs perfectly. | Higher upfront costs: Developing software can cost anywhere from 10,000to10,000to500,000+, depending on complexity. |
| Complete control over features and functionality: You decide what features to include and how the software works, unlike a SaaS platform with limited options. | Longer development time: Building software can take months or even years, depending on the scope. |
| No reliance on third-party vendors: You own the software, so you don’t depend on a provider for updates or support. | Requires ongoing maintenance: You or your team must handle updates, security patches, and bug fixes, which take time and resources. |
| – | Potential for scope creep: During development, the project might grow beyond the original plan, leading to delays and higher costs. |
SaaS vs Custom Software: When to Choose What
Deciding between SaaS and custom software depends on your business needs, budget, and long-term goals. Here’s a quick guide to help you choose the right software for your business.
Choose SaaS if:
- You need a quick, cost-effective solution to use the software immediately.
- Your needs align with what many SaaS companies offer in their off-the-shelf products.
- You prefer to opt for a SaaS solution that includes maintenance and updates, reducing your responsibilities.
Choose Custom Software if:
- You have unique or complex business requirements that require software tailored to your workflows.
- You need full control over functionality, data, and how the software is designed to grow with your business.
- You’re ready to build a custom solution like a custom CRM and make a long-term investment in your business’s future.
From concept to deployment—our team delivers custom web and mobile apps tailored to your business goals.
Conclusion
Choosing between these two options is a critical decision that can significantly impact your business’s efficiency, growth, and long-term success. A SaaS tool offers quick, cost-effective solutions with minimal maintenance, making it ideal for businesses with standard needs and limited budgets. On the other hand, a custom solution provides unparalleled flexibility, control, and alignment with your unique business processes, though it requires a higher upfront investment and longer development time. Whether you’re looking for enterprise software to scale your operations or custom-built software to address specific challenges, choosing the right solution is key to achieving your goals.
At The Attract Group, we specialize in helping businesses navigate this decision. Whether you need a ready-to-use SaaS tool or a fully custom-built software solution, our team of experts is here to guide you every step of the way. We tailor our services to meet your specific needs, ensuring you get the right software to drive your business forward.
Let us help you make the best choice for your business. Contact The Attract Group today to explore how we can transform your vision into reality.
FAQs
How do I know if a custom software solution is right for my business?
It is ideal if your business has unique processes or specific needs that off-the-shelf SaaS products can’t meet. If you require full control over features, scalability, and data security, or if you want to build better workflows tailored to your operations, it might be the best choice. However, it’s important to evaluate your budget and timeline, as custom-built software requires a higher upfront investment and longer development time.
Can I integrate a SaaS application with my existing systems?
Yes, most third-party SaaS tools offer integration options with popular platforms and systems. However, the level of integration depends on the type of software and its compatibility with your current tools. If seamless integration is critical for your business, you might need to explore APIs or consider a custom solution that can be designed to work perfectly with your existing infrastructure.
What are the ongoing costs to maintain custom software?
While SaaS products are ready to use with maintenance included in the subscription, maintaining software involves additional costs. These include hosting, updates, security patches, and technical support. You’ll need a dedicated team or partner to handle these tasks, which can add to the long-term expenses. However, the benefit is full control over how the software evolves to meet your business needs.
How long does it take to create custom software for my business?
The timeline to create software depends on the complexity of your requirements. A simple application might take 3 to 6 months, while more complex systems, such as enterprise software, can take 1 to 2 years or more. During this time, your development team will work closely with you to ensure the software can be designed to meet your exact needs and deliver the desired results.
What if my business needs to change after I choose a type of software?
If you choose a SaaS application, scaling or adapting to new needs is often easier, as most providers offer flexible plans and regular updates. However, if your needs change significantly, a third-party SaaS solution might not be able to keep up, and you could outgrow its capabilities. With custom-built software, you have the flexibility to adapt and scale as your business evolves, ensuring the software might always align with your goals. This makes it a more future-proof solution for growing businesses.
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