Custom SaaS development: Strategic approaches to building vs. buying cloud solutions

It's 1961 at MIT. Computer scientist John McCarthy stands before a room of students and makes a claim that sounds absurd:

"Data processing may one day be organized as a public utility."

The audience chuckles. The idea that computing power could be shared like electricity or water seemed unbelievable at that point. Yet today, we've not only realized McCarthy's vision - we've transformed it into an industry that's reshaping how businesses operate.

What is SaaS?

If you are new to SaaS, it stands for " Software as a Service", and it is a software delivery model where software is provided as a service over the internet instead of being installed locally.

Users can easily access the software through their browser and pay for usage through a subscription.

SaaS offers a cost-efficient alternative to traditional, in-house IT systems, which require significant investment in hardware, software, installation, configuration, and ongoing maintenance by a dedicated IT department.

While SaaS has been around for a while, many companies are still weighing its potential benefits.

The shift to cloud-based software has been nothing short of transformative. What was once reserved for tech giants is now a strategic advantage for companies of all sizes who recognize that differentiated software creates market leadership. Unlike off-the-shelf solutions, custom SaaS development preserves what makes your business unique while enhancing operational efficiency.

We've witnessed firsthand how this transition accelerates business growth. Companies moving their operations to the cloud gain unprecedented agility, enabling them to adapt quickly to market changes and customer needs.

This dramatic shift raises a critical strategic question for business leaders: should you build custom SaaS solutions or buy existing ones?

When a business's processes don't fit into standardized boxes, custom SaaS development becomes the obvious choice. We see this regularly with clients whose unique workflows would be compromised by off-the-shelf solutions.

With the help of a SaaS consultant, you can figure out the best way to see your business grow. As a SaaS development company, we guide you through the entire process, from concept to implementation and ongoing support.

For example, after completing a discovery phase for a social service organization, we developed a specialized platform connecting method leaders with end-users seeking life improvement. The unique nature of their support methodology required a tailored approach that no existing solution could accommodate.

Standard SaaS products follow generic workflows that often force operational changes. In contrast, custom development allows you to digitize your exact processes, preserving what makes your business unique while enhancing efficiency.

Most of all, a developer in the SaaS field will often use modern technologies and frameworks to build scalable, user-friendly and secure SaaS solutions that can offer various features and services to their users. 

For decision-makers weighing the build option, consider these advantages:

• Your software becomes a competitive advantage, not just a tool. Some of the most successful modern companies view their software as a core differentiator. If your software can provide unique capabilities your competitors lack, custom development might be worth the investment.
• You gain complete data ownership and insights. With built-in analytics and control over the user journey, custom SaaS gives you valuable insights that purchased solutions rarely provide. This is particularly valuable if your business relies heavily on data-driven decisions.
• Long-term costs can be lower for growing businesses. While initial investment is higher, custom SaaS can be more cost-effective over time, as you're not paying per-user fees that scale with your success.

Despite these advantages, custom development has traditionally come with significant challenges. The initial investment is substantial, with costs typically ranging from $50,000-$100,000 for a basic MVP to $200,000+ for a full-featured SaaS product.

Implementation takes longer, requiring months before launch even with the fastest development approaches. And you must commit to ongoing maintenance, updates, and support.

These are valid concerns for any business leader balancing innovation with fiscal responsibility. 

These challenges led us to develop an approach that mitigates the downsides of custom development while maximizing the benefits. That's why, as a dedicated SaaS company, our customized solutions help your company achieve its unique goals.

Instead of asking "What do you want us to build?", we start with "What problem are you trying to solve and what's your business hypothesis?"

This fundamental shift identifies the most efficient path forward, which might include testing key assumptions with lightweight prototypes, using existing third-party components for non-core functionality, or creating focused MVPs that deliver real value while conserving resources.

This also calls for a tailored development process, so you can expect a SaaS product that is designed to perform optimally, scale seamlessly, and thrive in the market.

Our co-founder Senad Santic puts it this way:

"When someone says 'build me an MVP,' it implies they know what's viable for their target audience. But you don't know if users will adopt your solution until they try it. It's not we who decide if it's viable - it's the target audience using it."

This insight led us to implement the Build-Measure-Learn cycle from the Lean Startup methodology. We build the minimum necessary to test your hypothesis, measure actual user engagement, and learn from real data to guide the next iteration. For example, when developing an OKR platform, we followed this very process. Rather than building everything at once, we created a focused MVP that tested core functionality with real users, allowing us to refine the product based on concrete results.

We have already built many SaaS products, which gives us the necessary knowledge when it comes to the processes and the development itself. Some famous Saas that have been owned and developed by us include, AvidNote and LinkBound.

This focus and expertise are a few of many reasons why you should let us help your business.

For all the advantages of custom development, purchased SaaS solutions offer practical benefits that make them the right choice in many scenarios.

A SaaS consultant also offers consultation and advice, integration, configuration, training and support to help make a great SaaS. The approach and care of your SaaS will be the number one goal to reach.

1. You need immediate implementation

Off-the-shelf SaaS can be deployed in days or weeks, not months. For time-sensitive business needs, this can be the deciding factor.

2. Your processes align with industry standards

If your workflows follow typical industry patterns, established SaaS products have likely already refined solutions through years of development and customer feedback.

3. You want predictable costs

Subscription-based SaaS provides clear, predictable operating expenses without the uncertainty of custom development and maintenance costs.This budgetary predictability is particularly valuable for businesses with tight financial controls.

4. Your internal resources are limited

Without in-house technical expertise or a dedicated product team, managing custom development becomes significantly more challenging. Purchased SaaS eliminates this concern by transferring technical responsibility to the provider.

Increasingly, forward-thinking businesses are adopting a hybrid approach that combines the strengths of both strategies. Our SaaS consultants can provide their expertise that covers onboarding development and marketing to ensure your project is successful.

Our custom SaaS development approach for Meela Health demonstrates our strategic hybrid methodology in action. Rather than building everything from scratch, our custom development focused precisely where it mattered most - the matching algorithms that became their competitive advantage. This targeted custom SaaS development strategy delivered maximum business impact while minimizing development time, directly contributing to their funding success.

Meela secured €2.6 million in seed funding to expand into the UK market, becoming one of Sweden's most successful online therapy startups.

This experience taught us that the most effective approach often involves:

• Starting with purchased SaaS for core functions to establish immediate operational capabilities.
• Building custom components for competitive advantage where your business has unique needs.
• Integrating both systems through well-designed APIs to create a cohesive ecosystem.

When deciding between building and buying, consider these strategic questions:

• Is software a core differentiator for your business, or simply a necessary tool?
• How unique are your processes compared to industry standards?
• What is your timeframe for implementation? Can your business afford to wait for custom development?
• Do you have the resources and expertise for ongoing development and maintenance?
• What is your budget flexibility between capital expenses (custom development) and operating expenses (SaaS subscriptions)?

Regardless of whether you build, buy, or blend approaches, one factor remains constant: the importance of user adoption. The most technically perfect software fails if people don't use it.

This is why our approach at ZenDev emphasizes understanding both the business objectives and the human experience. Technical excellence must be paired with intuitive design and practical workflows that match how people actually work.

When developing Linkbound, our social selling tool for LinkedIn content creators, we focused intensely on the user experience. 

Through rapid iteration based on real user feedback, we created a solution that our sales team described as "a crazy competitive advantage in sales."

Our proven methodology works across industries:

• For Cargotec/Kalmar, we developed a mobile app that increased operational efficiency by 103%
• With Avidnote, we created a research tool now used by 100,000+ academics worldwide
• For Meela Health, we built a platform that secured €2.6M in funding for UK expansion

The SaaS revolution shows no signs of slowing. As more businesses embrace cloud solutions, the question of build versus buy becomes increasingly strategic. We can't wait to begin with you today.

For business leaders navigating this decision, remember that there's no one-size-fits-all answer. The right approach depends on your specific business needs, resources, and growth strategy.

At ZenDev, we have built several SaaS products from scratch, both our customers' products and our own and can build for our own Saas!

Ready to explore how SaaS can accelerate your business growth? 

Contact us today for a free consultation.