Engineering

Custom Software vs SaaS: When Building Is a Mistake

An honest comparison of custom software vs SaaS in 2026. When building makes sense, and when it’s an expensive mistake.

Bear Labs Engineering
custom software vs saas build vs buy software decisions

Quick Summary

  • Building custom software is often the wrong first move.
  • SaaS wins when differentiation is low and speed matters.
  • Custom builds make sense only when software is the product.
  • Most teams build too early and pay for it later.

The Real Problem

Founders don’t ask “Should we build?”
They ask “Can we afford not to?”

In 2026, the real risk isn’t vendor lock-in.
It’s locking yourself into the wrong solution.


When SaaS Is the Better Choice

SaaS usually wins when:

  • the problem is common
  • workflows are standard
  • speed matters more than control
  • switching costs are acceptable

Examples:

  • CRM
  • billing
  • analytics
  • internal admin tools

If your advantage isn’t in the software, don’t build it.

Unsure if you’re about to overbuild?
Talk to an engineer before committing


When Custom Software Makes Sense

Custom builds are justified when:

  • the software is the product
  • workflows are unique
  • performance or scale is critical
  • SaaS limitations block growth

If your roadmap is 80% workarounds, you’re paying SaaS tax.


The Hidden Cost of Building Too Early

Early custom builds often suffer from:

  • unclear requirements
  • premature architecture
  • hard-to-reverse decisions

This is how MVPs quietly become technical debt factories.


Final Take (Bear Version)

Building isn’t brave.
Choosing not to build yet often is.

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