Almost every company today wants the same thing: to move faster, operate more efficiently, and scale with fewer headaches. And when a business starts investing seriously in digital systems, two options usually come up immediately:

1. Using SaaS (Software as a Service) — fast, ready-to-use, subscription-based.

2. Building Custom Software — designed specifically for the business.

Then comes the real question — not the “tech” question, but the business one: Which option is more profitable? And the honest answer is: it depends on your business stage, your workflows, and how unique your operations are. But there’s a pattern that shows up again and again:

SaaS wins in the short term. Custom software often wins in the long term.

SaaS: Affordable Upfront, Expensive Over Time (Sometimes Quietly)

Let’s be honest: SaaS is incredibly attractive. SaaS typically offers:

• fast implementation (days to weeks)

• lower upfront cost

• no need for an internal dev team

• vendor-managed updates and maintenance

For many companies — especially those early in their digital transformation — SaaS is absolutely the right move. But SaaS has one characteristic most companies underestimate:

It often feels cheap at the beginning, but becomes expensive as your business grows.

SaaS Pros and Cons

✅ SaaS Advantages

• fast go-live

• lower initial cost

• no need to build from scratch

• maintenance and updates handled by the vendor

• ideal for standard use cases

❌ SaaS Disadvantages

• limited features based on subscription tiers

• customization is often expensive or not available

• integrations can be restricted

• costs increase as user count grows

• vendor dependency (pricing, roadmap, policies)

SaaS is like renting a ready-made house: comfortable, convenient… but you can’t freely renovate.

Custom Software: Expensive Upfront, Valuable as an Asset

Custom software often feels like the heavier choice because:

• upfront cost is higher

• development takes time

• you need a capable IT partner

But custom software offers something SaaS rarely can:

Custom software adapts to your business — instead of forcing your business to adapt to the software.

That’s what real flexibility looks like.

Custom Software Pros and Cons

✅ Custom Software Advantages

• fully aligned with your business workflow

• scalable and adaptable as your needs evolve

• easier, deeper integrations

• stronger data control and ownership

• no per-user subscription costs that keep growing

• becomes a long-term business asset

❌ Custom Software Disadvantages

• higher initial investment

• longer implementation timeline

• poor planning can lead to scope creep

• requires maintenance (but usually predictable)

The Most Important Part: Cost Illustration (Short-Term vs Long-Term)

To avoid staying in theory, let’s use a simple cost simulation based on common benchmarks in Jakarta’s IT market. These are not exact prices from a specific vendor — but realistic ranges many mid-sized companies experience in Indonesia.

Scenario Assumptions

• a mid-sized company

• 20 active users

• needs standard features + a few integrations

• the system will be used for at least 5 years

Benchmark Pricing (Jakarta Market)

Short-Term Cost: Year 1

SaaS (Year 1), with total estimated IDR 204,000,000

• Base license: 5,000,000 x 12 = IDR 60,000,000

• Add-ons: 2,000,000 x 12 = IDR 24,000,000

• Users: 20 x 500,000 x 12 = IDR 120,000,000

Custom Software (Year 1), with total estimated IDR 440,000,000

• Development: IDR 400,000,000

• maintenance: IDR 40,000,000

Year 1 conclusion: SaaS is clearly cheaper and faster. And that’s why SaaS feels like the most profitable option at the beginning.

Long-Term Cost: 5 Years

Now let’s look at the bigger picture: total cost over time.

SaaS (5 Years), with total cost estimated IDR 1,020,000,000

• Base license: 60,000,000 x 5 = IDR 300,000,000

• Add-ons: 24,000,000 x 5 = IDR 120,000,000

• Users: 120,000,000 x 5 = IDR 600,000,000

Custom Software (5 Years), with total cost estimated IDR 600,000,000

• Development Fee: IDR 400,000,000

• Maintenance: 40,000,000 x 5 = IDR 200,000,000

In this simulation, custom software could save: IDR 420,000,000 (around 40%) over 5 years. Table below present you the Final Comparison: SaaS vs Custom (5 Years)

When SaaS Is More Profitable

SaaS tends to be more profitable when:

• your needs are still standard

• you want a fast go-live

• user count is still small

• integrations are minimal

• you want to validate your workflow first

When Custom Software Becomes More Profitable

Custom software tends to win when:

• your workflow is unique

• your user count keeps growing (SaaS cost rises)

• you need multiple integrations

• you want full control and ownership

• you want the system to become a long-term business asset

The Hidden Factor Most People Ignore: UX and Adoption

Here’s the part that rarely shows up in spreadsheets:

Software that is hard to use becomes expensive — even if it looks cheap.

Because poor usability creates:

• repeated training costs

• low adoption

• manual workarounds

• higher error rates

• productivity loss

✅ This is one reason custom software often delivers stronger ROI: because you can design the UI/UX around your actual users — not around generic market assumptions.

Conclusion: SaaS Wins Fast, Custom Wins Long

To summarize:

• SaaS is profitable for speed and standard needs

• Custom software is profitable for long-term growth and unique workflows

And as companies scale, one truth becomes clear:

Generic systems eventually stop feeling like solutions — and start feeling like compromises.

If You Want a System That Truly Fits Your Business…

At Graphie, we build custom software that is not only technically strong, but also designed with tailor-made UI/UX — seamless, intuitive, and genuinely enjoyable to use. Because profitable software isn’t just software that exists… It’s software that your team actually uses every day.

If you’re ready to build a system that grows with your business, Graphie is here to help.