Custom Software vs. SaaS: Pros, Cons & Cost Comparison

When choosing software for your business, the big question is: Should you build something custom or use a ready-made SaaS product?

Both options have their benefits—the right one depends on your goals, budget, and how flexible you need the software to be.

This guide explains the main differences between custom software and SaaS—their benefits, challenges, costs, and which one could be the better fit for your business in 2025 .

What Is Custom Software?

Custom software is made just for your business, built from the ground up to match your exact needs. It’s usually created by a dedicated team—either within your company or by a software agency. This means you get full control over how it works and how it grows with your business.

Key Benefits of Custom Software

• • Features and workflows designed to match how your business works
  • Greater flexibility and long-term scalability
  • Easily connects with your existing systems and tools
  • Improved data privacy and control

Common Challenges

• • High initial development costs
  • Requires more time to design, build, test, and deploy
  • Ongoing maintenance and updates must be managed or outsourced

What Is SaaS?

SaaS means Software-as-a-Service. It’s a type of software you pay to use online, usually through a monthly or yearly subscription. The software is ready to go and managed by the company that provides it. You don’t have to worry about setup, updates, or maintenance—it’s all handled for you.

Popular examples include CRM tools, project management platforms, and accounting systems. Well-known SaaS products include Salesforce (CRM), Trello (project management), and Xero (accounting).

Advantages of SaaS

• • Lower upfront costs with predictable subscription fees
  • Fast setup and deployment
  • Automatic updates, bug fixes, and vendor-provided support
  • Scalable for teams of different sizes

Drawbacks of SaaS

• • Limited ability to customise functionality
  • Data is stored and managed by a third-party provider
  • You may get locked into one provider with limited flexibility.
  • Might not fit your specific business needs

Cost Comparison: Custom Software vs SaaS

Feature	Custom Software	SaaS
Initial Cost	High (one-time or phased)	Low (monthly/annual)
Ongoing Costs	Maintenance and scaling	Subscription increases with usage
Time to Market	Longer (months)	Quicker (days to weeks)
Customisation Level	Full control	Limited
Maintenance	Your responsibility	Vendor-managed
Long-Term ROI	Higher if planned well	May decrease as costs rise over time

 Did You Know? On average, custom software development can cost between £40,000 and £200,000, depending on scope and complexity. SaaS typically ranges from £10 to £300 per user, per month.

Build vs Buy Software: When to Choose What

Still unsure which path is right? Let’s simplify the decision-making process:

Choose Custom Software If:

• • Your operations are complex or require specific workflows
  • You want to scale your software alongside your business
  • You have long-term plans that require data control and flexibility
  • You’re building a niche product or MVP that doesn’t fit off-the-shelf tools

Choose SaaS If:

• • You need a quick, affordable solution with minimal setup
  • Your business processes align with standard software offerings
  • You prefer predictable monthly costs and less IT overhead
  • You want built-in updates, customer support, and minimal maintenance

Flexibility, Scalability, and Control

Custom Software:

• • Works best for businesses with unique needs or big growth plans
  • Lets you add new features as needed
  • Offers better performance control
  • Easily connects with your existing systems
  • No need to depend on third-party updates or limitations

SaaS Platforms:

• • Easy to scale by adding more users
  • Limited ability to customise features deeply
  • May not support complex or unique workflows
  • Costs can rise as you need advanced tools or features
  • Could slow your team down or force you to adapt your processes

Security and Maintenance

Security is another key factor to consider. With custom software, you can build robust, business-specific security protocols from day one. You choose where your data is stored and how it’s encrypted.

With SaaS, the provider usually takes care of security, but they also control your data. That means you have to trust their rules, backups, and how they handle information. This is usually fine, but it can be a problem if your industry has strict privacy or compliance rules.

Maintenance: What to Expect

Custom Software:

• • Requires proactive updates and bug fixes, either by your internal team or a hired agency
  • You control when and how updates happen
  • Maintenance costs can vary depending on the complexity of the system

SaaS Solutions:

• • All backend maintenance is handled by the provider
  • You may have less control over when updates are rolled out
  • Updates may introduce changes that affect your workflows or require user re-training

Time to Market

If speed is your priority, SaaS usually wins. You can go from signup to setup in a matter of hours or days. This makes SaaS especially useful for startups or time-sensitive projects.

Custom software usually takes longer to build—often a few months from planning to launch—but it’s designed to fit your business perfectly. The extra time often pays off through better efficiency, smoother integration, and higher returns in the long run. It’s a smart choice if you’re thinking long-term

Which Is Best in 2025: SaaS or Custom Software?

In 2025, the best choice depends on where your business is, what your goals are, and what matters most to you.

So, what’s trending?

• • More startups, small businesses, and fast-moving teams are choosing SaaS because it’s quick, affordable, and doesn’t need much IT support.
  • Custom software is becoming more popular with growing businesses and large companies that want long-term value, strong system integration, and full control over their features and data.

In 2025, choose SaaS if:

• • You’re launching quickly or testing a new product idea
  • Your team has limited technical resources
  • You need predictable pricing and instant usability

Choose Custom Software if:

• • Your workflows don’t align with off-the-shelf platforms
  • You’re scaling operations and need flexibility
  • Data ownership, compliance, or competitive differentiation matters

Expert View: “In 2025, SaaS is ideal for speed—but custom software is the go-to for strategic growth and competitive edge.”

Custom or SaaS? Emvigo Delivers What Your Business Truly Needs

At Emvigo Technologies, a top software development company in the UK, we understand that no two businesses are alike. That’s why we offer both custom software development and SaaS implementation services—helping you choose and create the solution that fits your goals, timeline, and budget.

With a strong UK presence and years of experience across industries, we:

• • Design and build custom-fit software that grows with your business
  • Help you evaluate and integrate SaaS platforms for faster go-to-market
  • Deliver MVPs in just 4 weeks to help you launch and learn quickly
  • Offer end-to-end support—from MVP to enterprise rollout
  • Prioritise security, scalability, and long-term ROI in every solution

Our goal is simple: to build technology that gets real results. Whether you want to work more efficiently, give your customers a better experience, or stay ahead of the competition—we’ll help you choose the right option between custom software and SaaS.

Need guidance on where to start? Book a free discovery call with our team and get expert input on your next steps.

FAQ: Custom Software vs SaaS

1. Is SaaS cheaper than custom software in the long run?

SaaS costs less at the start, but the price can go up over time—especially if you need extra features, more users, or storage. Custom software costs more upfront, but over 3–5 years, it can save money if it fits your business and growth plans well.

2. Can I start with SaaS and switch to custom software later?

Yes. Many businesses use SaaS to get started quickly, then migrate to custom solutions as their needs grow. Just ensure your data is portable and your team plans for the transition to avoid disruptions.

3. Which is more secure: custom software or SaaS?

With custom software, you control the security, which is useful if you handle sensitive data or need to meet strict rules. SaaS usually follows standard security practices, which are reliable but might not suit specialised or high-risk industries

Final Thoughts Before You Decide

SaaS is great for getting started fast and keeping upfront costs low. But if your business needs grow, evolve, or require specialised tools, custom software becomes the smarter, more scalable investment.

SaaS is great for getting started fast and keeping upfront costs low. But if your business needs grow, evolve, or require specialised tools, custom software becomes the smarter, more scalable investment.