Comparison · 7 min read
Custom software or off-the-shelf: how to choose, with the maths
Katia Ryze, an AI-generated character. Article prepared with AI and reviewed by the Ryze Systems teamThe five options, and what each one does well
| Option | It fits when… | What to check before signing |
|---|---|---|
| Off-the-shelf subscription tool (for example Monday or HubSpot) | the need is standard and you want to start right away | the price per user, the features reserved for higher plans, where the data is hosted, data export |
| No-code | you are testing an idea or automating a secondary task | the cost when volume rises, who maintains it, what happens if the platform changes its rules |
| Freelancer | the scope is small and well described | the documentation, access to the code, continuity if the person is no longer available |
| Agency | the project is a one-off, well scoped, with a defined budget | who owns the code, how changes are priced |
| Custom software that you own | the process is central, used by many people, and meant to last | the build cost, the monthly cost, code ownership written into the contract |
None of these options is bad. Each one answers a situation. The common mistake is to keep the first one long after the situation has changed. The detail of the categories, with their limits, is in our comparison.
The break-even calculation, to run with your own numbers
We do not give figures in your place: vendors’ prices change, and your quote looks like no other. Take your invoices and a quote, then fill in these two lines.
Line 1: what the rented tool costs
Subscription per user per month × number of users × 12 × number of years
Add what the invoice does not show:
- the other subscriptions you keep to fill the gaps;
- the hours spent every week re-entering data or working around the tool, multiplied by your hourly cost;
- setup and training, if they were invoiced.
Line 2: what the built software costs
Build price + (monthly hosting and maintenance cost × 12 × number of years)
Add the time your team will spend describing the need and testing. It is real, and it is often forgotten.
The break-even point in months
Build price ÷ (total monthly cost of the rented tool − monthly cost of the built software)
Read the result as follows:
- If the result is shorter than the time you will keep this process, custom software pays for itself.
- If the monthly cost of the built software is equal to or higher than that of the rented tool, it never pays for itself on cost alone. You need another reason: ownership, compliance, a business advantage.
- Run the calculation again with the number of users you expect in three years. That is often where the result tips, because a per-seat subscription grows with the team.
To know what a build price contains and how to compare two quotes, see custom software cost in Switzerland.
What the calculation does not say
Three questions matter as much as cost.
- Who owns what? With a subscription, you rent. If the price or the terms change, you follow or you leave. With built software, ownership of the code depends on what the contract says: see requirements specification and development contract.
- Where is the data? Ask for the hosting country and the entity that can access it. For Swiss companies, the subject is covered in the Swiss data protection act and CRM.
- What does leaving cost? Check that you can export your data in a readable format, with the history, before you need to.
Where to start if you are hesitating
Do not replace everything. Choose the process that costs you the most today, run the calculation for that one, and keep the rest as it is. If the spreadsheet is still your main tool, start by checking whether it has reached its limit: the method is in replacing Excel with software: when and how.
At Ryze Systems, the model is an initial investment followed by a monthly subscription, with no per-user billing. It is one option among the five, not the answer to every situation: for a standard need, an off-the-shelf tool remains cheaper to get into.
Frequently asked questions
When workflows are clear and stable, does renting a tool still make sense?
Yes, if the tool covers the need without workarounds and few people use it. No, if you pay every month for many seats and make up for the gaps with files on the side. Run the break-even calculation with your own numbers: that is what decides, not a general rule.
What are the advantages and disadvantages of custom software?
Advantages: it follows your way of working, its cost does not necessarily depend on the number of users, and you can own the code and choose the hosting. Disadvantages: you have to pay for the build before you benefit from it, describe the need precisely, and plan for maintenance. It only makes sense where a standard tool holds you back.
Freelancer or agency to build software?
A freelancer suits a limited scope, with a direct contact. The risk is dependence on a single person: ask for the documentation, access to the code and a plan in case they become unavailable. An agency brings a team and continuity, generally at a higher cost. In both cases, the contract must settle who owns the code.
Is no-code enough for an SME?
To test an idea or automate a secondary task, yes. For a process the business depends on, look at three things: what the tool costs when volume grows, who will be able to maintain it in two years, and whether you can export your data and your rules the day you change.
Too many subscription tools: should you centralise everything?
Not necessarily everything. List your subscriptions, their annual cost and the number of people who really use them. Keep those that do one thing well, such as accounting. Group those that overlap and force you to enter the same information again.
In 60 seconds: your friction points, the recommended modules and an indicative price range.
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