Why the TCO Comparison Is Crucial
Many companies only look at the initial costs. However, the Total Cost of Ownership (TCO) over 3-5 years determines which solution is actually more economical.
License Costs Rise
SaaS licenses typically increase by 5-15% per year. With 50 users, that quickly adds up to five-figure additional costs.
Vendor Lock-In Is Costly
Dependence on one vendor means: accept rising prices or migrate at high cost. Custom software gives you control.
Flexibility Pays Off
Custom software adapts to your processes – not the other way around. That saves workarounds, training, and frustration.
Typical Break-Even Periods
- High license costs per user
- Significant price increases
- Specific requirements
- Moderate license costs
- Growing user count
- Process optimization
- Low license costs
- Stable user count
- Strategic reasons
Finance Your Investment: Leasing & Grants
With development costs of €50,000–200,000, software leasing offers an attractive alternative to upfront payment. The monthly rate typically ranges between €700 and €3,000 – often less than the ongoing license costs they replace.
Custom software development is eligible for 30–50% funding through programs like "go-digital", "Digital Jetzt", and various state programs. Our grant calculator shows your options.

