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SaaS or custom software: how to choose

When off-the-shelf software is the smart choice, and when building custom software is justified.

By B2Social · Updated · 8 min read

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When SaaS is the right choice

For standard processes like accounting, e-mail or CRM, mature SaaS is usually faster and cheaper.

When custom software makes sense

Custom software is justified when a process is core to your competitive advantage, unique, or costly to work around.

The hybrid route

Often the best answer is SaaS for the basics, connected by integrations and a small custom layer for what makes you unique.

Questions to ask

Use these questions to guide the decision.

  • Is this process unique to us?
  • What do workarounds cost today?
  • Who maintains the software long-term?

Frequently asked questions

Is custom software always more expensive?

Upfront, usually. Over time it can be cheaper than licences plus workarounds.

Can I start with SaaS and switch later?

Yes, and that's often a sensible path.