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Custom software vs SaaS subscription comparison
TL;DR

SaaS suits a standard workflow and a need to launch within days. Custom software suits a workflow the SaaS product cannot match, or per-seat costs above roughly A$500-$800/month. A hybrid — SaaS for commodity functions, custom for the differentiating one — is common.

A SaaS bill increases every time the business adds a staff member, regardless of whether that person uses half the features. Data lives inside the vendor's platform, exportable only in a fixed format. A workflow the team has adapted to work around, because the product cannot be configured to match it, is treated as normal.

3 ways to approach it

  • Stay on SaaS — A$200-$2,000/month, live in days, right when the workflow is standard (accounting, email, generic project management).
  • Move to custom — from A$15,000 upfront, no per-seat fee, full control of the data and the workflow, typically 4-8 weeks for a first phase.
  • Run both — keep SaaS for commodity functions, build a custom module (often via API) for the process that is unique to the business.
Factor SaaS Subscription Custom Software
Cost structure Recurring, scales with users Upfront, then maintenance only
Data ownership Held by vendor, export on request Held by the business
Time to launch Days 4-8 weeks for a first phase

A related question is custom vs off-the-shelf software generally — SaaS is one form of off-the-shelf, licensed monthly rather than owned. Contact us to talk through your specific workflow before you commit either way.

Frequently Asked Questions

What happens to my data if I stop paying for a SaaS subscription?

Access typically ends immediately or within days. Export your data on a schedule (monthly or quarterly) regardless of which model you use, so you are not dependent on the vendor keeping your account active to retrieve it.

At what point does a SaaS subscription cost more than custom software?

When per-seat SaaS fees exceed roughly A$500-$800/month, a custom build (from A$15,000-$25,000 for a first phase) usually breaks even within 2-3 years, since it carries no recurring licence fee.

Author
PowerSupporter Editorial Team

Based in Melbourne, PowerSupporter builds custom software for Australian businesses — from warehouse management and inventory systems to web apps, mobile apps and internal business tools.