When custom software is actually cheaper than SaaS
Custom does not automatically mean expensive. For narrow workflows with high recurring fees, the math can reverse surprisingly quickly.
The old assumption was simple: buy software because custom development is expensive. Modern development changes that equation for some workflows.
01
Start with annual spend
A company paying $20,000 to $50,000 every year for a narrow workflow has a very different build-versus-buy equation than a company paying $50 a month.
02
Narrow beats broad
Custom replacement works best when the organization depends on a small number of important workflows rather than hundreds of rarely used enterprise features.
03
Implementation should buy down future cost
A healthy model can include an upfront implementation fee and a lower recurring platform fee. The customer gets a better fit and the payback period can still be short.
04
Do not replace commodity infrastructure
Email, identity, payments, accounting ledgers, and other mature infrastructure often belong with established platforms. The opportunity is usually the ugly operational layer sitting between them.
Question to take back to your team
How much of the software you pay for would you rebuild if you only had to preserve the parts your team truly uses?
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