1. Your Current SaaS Subscription Model
2. Custom Software Alternative Estimate
At month 14, your custom software becomes completely cheaper than paying recurring SaaS seat licenses.
Understanding Total Cost of Ownership (TCO) in Software
Total Cost of Ownership extends far beyond the initial invoice. For SaaS applications, businesses pay an uncapped marginal tax on every new hire. As headcount grows from 30 to 100, monthly billing escalates linearly, while the business accumulates zero balance sheet asset equity. Custom software inverses this relationship: capital is deployed upfront to architect a bespoke, proprietary application tailored to your workflows, after which monthly operating costs flatten to server compute and light maintenance.
Frequently Asked Questions
How is the software break-even point calculated?
The break-even point occurs in the month where total cumulative SaaS subscription payments (incorporating seat volume and annual price escalation) surpass the one-time custom software build cost plus accumulated hosting fees.
What ongoing costs does custom software require?
Custom software requires cloud server hosting (typically $100 to $400/month for standard B2B applications on AWS or Hetzner) and routine OS/package security updates. You do not pay per seat or per user.
Do I own 100% of the code and intellectual property?
Yes. Apex IT Solutions assigns 100% of source code, intellectual property, repositories, and cloud account credentials directly to your organization upon project completion.