You're looking for a tool to manage your inventory, customers, or orders. You find a SaaS that promises to solve everything for $49 a month. It seems perfect. Six months later, you're paying $49 for features you don't use, adapting your operation to the software (instead of the other way around), and dreaming of someone building exactly what you need.
Sound familiar?
The decision between SaaS (Software as a Service) and a custom solution is not trivial. Choosing wrong can cost you thousands of dollars a year, hours of frustration, and lost opportunities. Choosing right can give you a real competitive advantage.
In this article, we offer you a clear framework to make this decision with confidence.
First, let's understand what we're comparing
A SaaS is software you rent. You pay monthly, access it online, and share the platform with thousands of other users. Examples: Odoo, Monday, Shopify, Mailchimp.
A custom solution is software built specifically for you. You pay once (or in phases), it's yours, and it does exactly what you need. Nothing more, nothing less.
Neither option is inherently better. Everything depends on your situation.
5 signs that a SaaS doesn't work for you
1. You use less than 20% of the features
If the software has 50 features and you use 5, you're paying for 45 you don't need. Worse yet: those extra features complicate the interface, confuse your team, and make everything slower.
A mini custom solution would have only those 5 features, perfectly adapted to how you work.
2. Your process is your competitive advantage
If the way you operate is what differentiates you from the competition, why use the same software as them? A SaaS forces you to work like everyone else.
Real example: A real estate company had a unique client tracking process that gave them 40% higher closing rates. No CRM on the market could replicate it. A custom solution allowed them to scale that process without losing their differentiator.
3. You need integrations that don't exist
"Does it integrate with X?" is the million-dollar question. If the SaaS doesn't connect with your other tools, you end up doing manual copy-paste or paying for connectors like Zapier that add $20-50 more per month.
A custom solution is built thinking about your ecosystem from day one.
4. The price scales with your growth
Many SaaS charge per user, per contact, or per volume. What costs $49 today could cost $490 when you grow 10x. Do the math for 3 years:
SaaS at $99/month = $3,564 in 3 years (and keeps climbing)
Custom solution = one-time investment of $2,000-5,000 (and it's yours forever)
5. You depend on the company continuing to exist
What happens if the SaaS shuts down, gets acquired, or drastically changes its prices? Your operation depends on a decision you don't control.
With your own solution, the code is yours. You can host it wherever you want, modify it whenever you want, and it doesn't disappear if someone in Silicon Valley decides to "pivot".
When SaaS is the best option
Let's be fair. There are cases where SaaS clearly wins:
Standard processes: Accounting, email marketing, basic project management. You don't need to reinvent the wheel.
You need to start today: A SaaS is ready to use. A custom solution takes days or weeks.
Initial budget is very limited: $49/month hurts less than $3,000 upfront, even though it's more expensive long-term.
You don't know what you need: Trying several SaaS helps you discover which features you actually use before investing in something custom.
The decision framework
Ask yourself these 4 questions:
Is the process I want to solve standard or unique? If it's standard (billing, email), go for SaaS. If it's unique, consider custom.
How much will I pay in 3 years? Multiply monthly cost × 36 months × expected growth. Compare with development cost.
Is this software critical to my operation? If your business stops when the software fails, think twice before depending on a third party.
Does the SaaS force me to change how I work? If you adapt your process to the software (instead of vice versa), you're losing efficiency.
The third option: micro-solutions
Here's the secret few people know: you don't have to choose between a complete SaaS or a giant development project.
There's a middle ground: custom micro-solutions. These are small tools, focused on solving ONE specific problem, that are built in days (not months) and cost a fraction of traditional development.
Real examples:
A smart form that qualifies leads and sends them to the right salesperson
A dashboard that shows the 5 metrics that really matter
An automation that syncs your inventory across 3 platforms
A mini-CRM with exactly the fields you need
These micro-solutions can complement your existing SaaS, filling gaps they don't cover, or completely replace tools you're underutilizing.
How to calculate real ROI
Before deciding, do this exercise:
Real cost of SaaS:
Monthly subscription × 36 months
+ Integration costs (Zapier, etc.)
+ Your team's hours adapting to the software
+ Lost opportunities due to limitations
Real cost of custom solution:
Initial development investment
+ Hosting (~$10-50/month)
+ Occasional maintenance
In many cases, the custom solution pays for itself in 12-18 months. After that, it's pure savings.
Conclusion: There's no universal answer
The best option depends on your specific situation. But now you have a framework to decide:
SaaS for standard processes, limited budget, or when you need to start now.
Custom solution for unique processes, when long-term cost matters, or when the software is critical to your operation.
Micro-solutions to fill specific gaps without committing to giant development.
What's important is to do the math, not get carried away by the marketing of the most popular SaaS or by the fear that "custom is expensive".
Not sure which option suits you?
At osom we help SMEs make this decision every day. Sometimes we recommend a SaaS. Sometimes we build a micro-solution. We always recommend what you actually need, not what's most convenient for us to sell.
Schedule a free 30-minute consultation. We'll help you evaluate your specific case and give you an honest recommendation, no commitment required.