Choosing the right software for your business is one of the most important technology decisions you’ll make. And there’s no universal answer: what works for a startup in London might be a disaster for a tourism company in Gran Canaria. In this article, we’ll honestly compare the two main options — generic SaaS solutions and custom development — so you can make an informed decision.

What are we talking about?

Generic software (SaaS)

These are platforms like Salesforce, Monday, Shopify or Xero. You subscribe with a monthly fee, they’re ready to use from day one, and the provider handles maintenance. They cover general needs: accounting, project management, CRM, online shops, etc.

Custom software

This is an application designed and developed specifically for your business. A development team analyses your processes, your needs and your context, then builds a tool that fits exactly how you work.

Pros and cons of generic software

Advantages:

Low initial cost: You pay a monthly subscription that usually starts at €20-100/month.
Quick implementation: Sign up and start using it in hours or days.
Updates included: The provider handles maintenance and improvements.
Integration ecosystem: Popular SaaS tools connect with each other easily.
Support and documentation: Large communities, tutorials, forums.

Disadvantages:

Rigidity: You have to adapt your processes to the software, not the other way around.
Unnecessary features: You pay for things you don’t use.
Specific gaps: Missing functions you actually need for your sector or market.
Vendor lock-in: If they raise prices, change features or shut down, you have a problem.
Cumulative cost: Long-term, subscriptions add up more than you’d think. A €80/month tool × 5 users is €4,800/year. Over 5 years, €24,000.

Pros and cons of custom software

Advantages:

Perfect fit: It reflects exactly how your team works.
Competitive advantage: Your competitors don’t have the same tool.
Full ownership: The code is yours. No dependency on third parties.
Real scalability: It expands according to your needs, not the provider’s pricing plans.
Deep integration: It connects with any system you already use, even legacy ones.

Disadvantages:

Higher initial investment: A custom project can cost between €10,000 and €80,000, depending on complexity.
Development time: Weeks or months until the first functional version.
Ongoing maintenance: You need a team (internal or external) to maintain and evolve the software.
Risk of poor execution: If you choose the wrong development team, the result can be worse than a SaaS.

When does each option make sense?

Choose generic SaaS when:

Your business is new and you don’t have consolidated processes yet.
Your needs are standard (basic accounting, email marketing, simple online store).
Your initial budget is very limited.
You need something working now, with no time for development.

Choose custom software when:

Your business processes are unique or complex.
Generic software forces you to use constant workarounds or patches.
You manage sensitive data that requires total control.
You need to integrate systems that don’t communicate with each other.
The cumulative SaaS cost exceeds what custom development would cost.

The Canary Islands case: why local context matters

Businesses in the Canary Islands have particularities that many SaaS platforms don’t account for:

IGIC instead of VAT: Many generic invoicing programs don’t handle IGIC, the REF regime or Canarian tax particularities well.
Tourism seasonality: Tourism-linked businesses need tools that manage demand peaks, tour operator contracts and multiple languages natively.
Island logistics: Companies distributing between islands need software that understands inter-island routes, times and costs.
Integration with local bodies: From the Canary Islands Government to chambers of commerce, there are specific integrations that an American SaaS will never offer.

A concrete example: a restaurant chain in Las Palmas was using three different SaaS tools (reservations, POS, inventory) that didn’t talk to each other. Staff wasted 2 hours daily cross-referencing data manually. A custom system integrated everything into a single platform, eliminated duplication and reduced order errors by 40%.

The hybrid approach: the best of both worlds

Not everything has to be black or white. Many Canary Islands businesses benefit from a mixed approach:

Use SaaS for generic needs (email, office tools, internal communication).
Build custom solutions for your business core (reservation management, specific operations, dashboards).
Connect both worlds with custom integrations (APIs, webhooks, ETLs).

This approach gives you the speed and low cost of SaaS where you don’t need to differentiate, and the power of custom development where you do make a difference.

How to decide: a practical checklist

Before making the decision, ask yourself these questions:

How many hours per week does your team lose adapting to current software?
Are you paying for features you don’t use?
Does generic software cover at least 80% of what you need?
Do you have unique processes that differentiate you from competitors?
What’s the total SaaS cost over 3-5 years vs. custom development?

If the answers point to SaaS falling short, it’s probably time to explore custom development.

Conclusion

There’s no single right answer. But there is a right answer for your business. Generic software is perfect for standard needs and tight budgets. Custom development is the option when you need a tool that works exactly the way you work.

The key is not to stay trapped in software that holds back your growth out of fear of change. If you feel your current tools limit you more than they help, it’s time to evaluate alternatives.

Not sure which option is best for your company? Contact us and we’ll help you evaluate it — no strings attached.