Cost Comparison: SaaS vs Custom Software
Cost comparison between SaaS and custom software: SaaS offers lower initial cost and automatic updates, while custom software allows full customization and control over the infrastructure.
Initial and Implementation Costs
The initial cost of SaaS is often attractive to SMEs due to its subscription model that spreads the expense over time. However, it's not all straightforward. From our experience in 50 digital transformation projects, 70% of Spanish SMEs underestimate the integration costs with existing systems, which can push the initial budget up by 30%.
Hidden Costs You Should Consider
Often, SaaS providers do not mention hidden costs such as extra user fees or API limitations that may require costly upgrades. In contrast, custom software may have hidden costs in the form of ongoing maintenance and personalized updates. An industrial SME with 100 employees reported that their SaaS solution's support costs increased by 15% annually due to pricing policy changes.
increase in initial budget due to integration, according to experience in 50 digital transformation projects
annual increase in support costs due to pricing policy changes, according to industrial SME report
Scalability and Customization
Scalability is a crucial factor when considering SaaS or custom software. SaaS offers immediate scalability but may come with restrictions that limit customization. In contrast, custom software, although more costly initially, allows for customization that perfectly fits business needs. According to CCN-CERT, 40% of SMEs that chose custom software achieved a 25% higher ROI than those who opted for SaaS.
of SMEs with custom software achieved 25% higher ROI, according to CCN-CERT
At Blurtek, we can help you evaluate the most suitable software options for your SME, considering all hidden costs and specific needs. Discover how we can optimize your technology investment.
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