SaaS vs Custom Software: A 5-Year Perspective for Spanish SMEs

Comparison of costs and benefits between SaaS and custom software: SaaS offers lower initial cost and automatic updates, ideal for companies seeking rapid scalability. Custom software provides total personalization and absolute control, but requires higher initial investment.

Initial and Recurring Costs

In Spanish SMEs, the initial costs of custom software can range from 20,000 to 100,000 euros, whereas SaaS typically starts with monthly fees between 50 and 200 euros per user. However, over 5 years, the accumulated costs of SaaS can surpass custom software if additional users or modules are added.

Impact on Scalability

Scalability is crucial in the decision between SaaS and custom software. While SaaS allows rapid expansion without the need for additional infrastructure, custom software offers the possibility to adapt each component as the company grows. However, 45% of SMEs report scalability issues with SaaS due to customization limitations, according to our experience in 50 projects.

Flexibility and Personalization

Custom software stands out for its ability to be personalized, allowing SMEs to design solutions that perfectly fit their processes. However, this flexibility comes with the cost of slower development. SaaS, on the other hand, offers pre-configured solutions that may not fully adapt to the company's specific needs.

Security and Compliance

A manufacturer in Lleida adopted SaaS for its CRM, reducing implementation time to just 3 weeks. However, it faced limitations when trying to integrate with its existing ERP system, requiring additional solutions and a 30% increase in monthly costs. Conversely, an agricultural SME opted for custom software, achieving seamless integration with its production processes, although the development time was 9 months.

The choice between SaaS and custom software depends on the specific needs of the SME, its budget, and its long-term goals. SaaS is ideal for those seeking a quick and economical solution, while custom software is more suitable for companies requiring personalization and complete control over their systems.