Choosing between custom software and off‑the‑shelf (COTS) can define your roadmap for years. This guide breaks down costs, timelines, risks, and outcomes—then gives you a simple decision framework.

1) Total Cost of Ownership (TCO)

• Licensing vs. build cost: COTS minimizes upfront cost; custom avoids perpetual licensing and per‑seat fees.
• Integration: Hidden COTS costs often show up in connectors, middleware, and workflow workarounds.

2) Time-to-Value

• COTS: Fast deployment for common needs.
• Custom: Slower to start, but accelerates once aligned to your exact process—often saving hours weekly.

3) Scalability & Fit

• COTS scales horizontally but may not reflect your niche workflows.
• Custom aligns to your data model and growth targets from day one.

4) Security & Compliance

• Evaluate vendor posture (SOC 2, ISO 27001) vs. your own security practices.
• Custom gives you control over data residency and exactly what’s logged, stored, and encrypted.

5) Risk & Vendor Lock‑in

• COTS lock‑in appears as proprietary schemas or API limits.
• Custom risk appears as technical debt—mitigated by code quality standards and documentation.

Decision Checklist

• Is your workflow truly differentiating?
• Will licensing exceed build cost in 2–3 years?
• Do you require deep integrations or data residency control?
• Do you need a unique UX to drive adoption?
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