Are you having trouble estimating the cost of developing software in-house versus purchasing a SaaS platform? Go through these points to decide what’s best for you!
Factors to consider
Cost
- How much will it cost you to construct your dream software from the ground up (both in terms of time and money)?
- What will it cost to purchase software that meets the majority of your requirements (i.e., a feasible solution)?
- How much will it cost to keep both options running for the next five years?
Capabilities
- What exactly do you want the software to do for you?
- Is there already a product on the market that can meet those requirements?
- Is your team capable of designing software to meet those needs if not?
PROS OF BUYING SOFTWARE
- Because you control the code, you can even promote and sell it for a profit.
- You can design it to integrate with the rest of your software stack.
- If you discover that it is missing a feature that your company need, you can make it a top priority to add it.
CONS OF BUYING SOFTWARE
- There’s a good chance that software that’s quite similar to what you’re planning has already been produced. If that’s the case, repeating their job will cost you a lot of time and money.
- Even with a well-established development team, creating software takes a lot of time, resources, planning, experience, and effort. You’re also in charge of maintaining the code and providing support to users year after year.
- Even the most meticulously planned projects are vulnerable to scope creep, budget overruns, and missed deadlines.
PROS OF BUILDING SOFTWARE
- When buying, the period from purchase to implementation might be as little as a few months or less, versus a few years or more when developing.
- When purchasing software, the upfront costs are often substantially cheaper.
- When you purchase a SaaS solution, the SaaS provider will handle everything from training to hosting to maintenance, leaving you to focus on your business.
CONS OF BUILDING SOFTWARE
- When you purchase software, you become fully reliant on the company that created it. You can only make a request and hope that the developer can work with you if it doesn’t interact properly with a crucial tool or if it lacks the functionality that you require.
- While developing your own software is more expensive upfront, it can save you money in the long term. Purchasing software, particularly a SaaS offering, is the polar opposite. Subscription fees, whether monthly or annual, can add up to tens of thousands of dollars every year, especially if you need to grow capacity and features.
- When you buy off-the-shelf software, you’re getting the same tool and features as a lot of your competitors, which limits your ability to establish a competitive advantage.
The choice between developing in-house software and purchasing a SaaS platform can be difficult.
Control, monetary costs, maintenance, opportunity cost, and time to value are all important considerations. You can make an informed decision for your company if you have these inputs.
