Term · Custom software
Custom software
Custom software is software built for one business, around the way that business works.
In short
Custom software, or bespoke software, is software built for one business. The opposite is standard software: one package for many businesses. Custom software suits work that no package supports well. For a lot of other work, a package is enough.
What is custom software?
Custom software is software built specially for one business, around the way that business works. Another word for it is bespoke software.
The opposite is standard software: one package that many businesses use, often as a subscription via the internet. That is called SaaS. With standard software you adapt your work to the package. With custom software, the software follows your work.
How does custom software come about?
It starts with working out how you work and what could be better. Then comes a proposal: what will be built and what it costs. The software is completed in steps, often with a small first version: an MVP. The data is stored in a database. Through integrations, the software works together with the packages you already have.
After the build, the software runs on a server. That requires hosting and maintenance, for as long as you use the software.
Example in an SME
Made-up example
A rental company keeps track of equipment rental in a large spreadsheet. Five people work in it, and it is often unclear which version is correct. A small custom app puts the rentals in one place, with an overview per machine. The invoices go to the accounting package via an integration.
When is a package enough?
Custom software is far from necessary for every business. Good packages exist for accounting, email and payroll. Custom software comes into the picture when:
- your work is done differently from most businesses in your sector;
- you spend a lot of time working around a package;
- your data is in separate lists that nobody can keep track of any more.
With custom software, pay attention to ownership and maintenance. Who owns the code and the data? And who keeps the software up to date? With me, the code and your data are yours. Read more about custom software, about what custom software costs, or recognise your situation in Your Excel lists have got out of hand.
Frequently asked questions
Is custom software more expensive than a package?
Up front usually yes, because you pay for the build. A package costs a subscription, often per user. How it works out over a few years depends on the number of users and on what you would otherwise do by hand. So compare the costs over several years.
Can custom software work with your current packages?
Usually yes, if those packages have an API. Then you connect the custom software to them, so that data is not entered twice.
What if the builder stops?
Agree in advance that you will then get the code and the data. Then another party can carry on.
Written by Bart van Engelenhoven Founder of Uniekaiconsultancy in Ede, the Netherlands. Bart analyses how SMEs work and builds software, integrations and AI applications himself. Last updated: 7 October 2026
Read more
Term
SaaS (software as a service)
What is SaaS (software as a service)? Software you use as a subscription via the internet. Explained in plain language, with the pros and cons listed.
Read moreTerm
MVP (minimum viable product)
What is an MVP? The smallest working version of new software, which you learn from before you build further. Explanation with an example and the pitfalls.
Read moreArticle · 11 min read
What does custom software cost, and when does it make sense?
What does custom software cost? See what sets the price, which costs are one-off and which monthly, how to compare quotes and who owns the code.
Read moreNext step
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