Custom Software vs. SaaS: The ROI Calculation for 2025

In the boardrooms of modern companies, one question triggers more debates than any other: Build or Buy?

Should you subscribe to a SaaS (Software as a Service) like Salesforce or SAP, or should you hire an engineering firm like Glarium to build a custom solution?

The answer isn’t simple. But after 10 years in the industry, I can tell you this: Generic software produces generic results.

The “Excel” Trap: Where it starts

We see this pattern constantly. A logistics company manages its fleet on Excel. It works for 5 trucks. It works for 10. But at 50 trucks, “Bob from accounting” is the only one who knows how the macros work.

If Bob leaves, the company is paralyzed. This is called Key Person Risk, and it’s a valuation killer.

The 3 Levels of Software Needs

To decide, you must categorize your problem:

1. Commodity Processes (BUY)

Examples: Email (Gmail), Payroll, CRM for standard sales.
Verdict: Don’t build this. It’s a solved problem. Use Shopify, Slack, or HubSpot.

2. Differentiating Processes (BUILD)

Examples: Your proprietary pricing algorithm, your specific logistics route optimization, your unique customer onboarding flow.
Verdict: BUILD. If you use the same software as your competitor, you have no advantage. Custom software here allows you to move faster and serve customers better.

3. Innovation (BUILD)

Examples: AI integration that predicts your specific stock levels.
Verdict: BUILD. This is Intellectual Property (IP).

The Financial Reality: CAPEX vs OPEX

Many CFOs prefer SaaS because it’s a predictable monthly cost (OPEX). Custom software is a large upfront investment (CAPEX).

However, consider the 5-Year Total Cost of Ownership (TCO):

SaaS: Fees increase as you grow. Users + Data + Enterprise Features = Exponential cost.
Custom: High initial cost, but maintenance is low. You own the asset. You don’t pay per user.

“At Glarium, we build assets, not liabilities. Your software should be on your balance sheet as IP.”

How We Engineer for Longevity

When we build custom software, we don’t just patch code together. We use a Modular Architecture:

Backend: Node.js / Python (Scalable and secure).
Frontend: React / Astro (Fast and SEO friendly).
Cloud: AWS/Cloudflare (Global distribution).

This ensures that if you need to change a part of the system in 3 years, you don’t have to throw everything away.

Frequently Asked Questions (FAQ)

Q: How long does it take to build a custom MVP? A: Typically 3 to 4 months. We start with a Discovery Phase to map out the exact requirements so no time is wasted.

Q: Do I own the code? A: Yes. Unlike many agencies, Glarium transfers 100% of the IP to you upon completion.

Q: Is custom software harder to maintain? A: Not if built correctly. We provide documentation and automated tests. Plus, we offer maintenance packages so you don’t need an in-house IT team.

Conclusion

If your business is standard, buy standard software. But if you aim to lead your market, you need tools that fit your vision, not the other way around.

Ready to evaluate your project? Book a Discovery Call with us.