Firing a SaaS vendor is necessary when costs exceed value, roadmaps diverge, or data becomes trapped. Slickrock.dev provides a 3-step decision framework—TCO, Strategic Value, and Data Portability—to help businesses decide when to build proprietary solutions.
2026 Update
Vendor lock-in has become a strategic liability. With AI-accelerated development, building custom is now 60% cheaper than it was in 2020. The "build vs. buy" math has fundamentally shifted.
Key Insight
The Divorce Dilemma: Divorce is hard. Firing a software vendor that holds all your data is harder. But sometimes, it's necessary for survival. The sunk cost fallacy keeps companies trapped in toxic vendor relationships for years.
The Tipping Point
How do you know when it's time to build? It's rarely just about price—it's about friction. The moment your business process changes to accommodate software limitations, you're losing money.
| Signal | Stay with SaaS | Fire and Build |
|---|---|---|
| Usage | Using 80%+ features | Using <20% features |
| Roadmap | Aligned with yours | Diverging from yours |
| Cost Trajectory | Stable or decreasing | Increasing 15%+ yearly |
| Data Access | Full export available | Locked in or limited |
| Customization | Sufficient | Blocked by "enterprise tier" |
The Decision Framework
Calculate TCO
Sum up license fees for next 3 years vs. one-time build cost + maintenance. Include hidden costs: integrations, workarounds, opportunity cost of limitations.
Assess Strategic Value
Is this tool a commodity (Payroll, Email)? Keep SaaS. Is it a differentiator (Logistics, Pricing Engine)? Build. If it touches your core value prop, you should own it.
Check Data Portability
Can you get ALL your data out easily? If not, you're trapped. Plan an escape immediately. Data hostage situations only get worse.
""We realized we were paying $180K/year for a tool that served 20% of our needs and blocked 80% of our roadmap. The custom build paid for itself in 14 months."
"
The 14-month payback is typical for most companies. After that break-even point, every month is pure savings while competitors continue paying rent to vendors who don't care about their roadmap. The math becomes undeniable quickly.
The Red Flags
Verification Checklist
- The vendor just raised prices by 20%+ with no new value.
- Support tickets take 5+ days to resolve.
- You're using 3+ other tools just to patch the gaps in this one.
- Your team spends more time on workarounds than actual work.
- The vendor's roadmap is moving away from your industry.
- You can't export your data in a usable format.
- The 'enterprise tier' is the only way to get basic features you need.
- Your competitor just built their own and is moving faster.
Cost Comparison: SaaS vs. Custom Build
| Cost Element | SaaS (3-Year) | Custom Build |
|---|---|---|
| License/Build | $180K-$540K | $50K-$125K |
| Integrations | $30K-$90K | Included |
| Workarounds | $50K+ (opportunity cost) | $0 |
| Data Ownership | 0% (rented) | 100% (owned) |
| Flexibility | Limited | Unlimited |
Key Insight
The Inflexibility Factor: The moment your business process changes to accommodate software limitations, you're losing money. The software should bend to you, not the other way around.
The Vendor Exit Playbook
Firing your SaaS isn't just about building the replacement. It's about executing the transition without disrupting operations. Here's the proven pattern that minimizes risk while maximizing speed:
Phase 1: Shadow Running (Weeks 1-4) Run the new system in parallel with the old. Import data nightly. Have power users test workflows. Identify gaps before they become crises.
Phase 2: Feature Parity (Weeks 5-8) Ensure every critical workflow works in the new system. This is where custom builds shine—you're not waiting for a vendor to prioritize your feature request.
Phase 3: Migration Window (Weekend) Cut over during low-activity periods. Have rollback plans ready. Communicate clearly with all stakeholders. The goal is zero-surprise migrations.
Phase 4: Sunset & Savings (Month 2+) Once the new system is stable, cancel the SaaS subscription. Start tracking the ROI: saved license fees, reduced workaround time, improved data access.
What Companies Get Wrong
The biggest mistake we see: trying to replicate the SaaS exactly. You left for a reason. Build what you actually need, not a clone of what you were forced to use.
The second biggest mistake: underestimating data migration. Data cleanup is always harder than expected. Budget 20% of project time for it.
The third mistake: not documenting the old system before you leave. You'll need those workflow details to build the replacement.
Take Back Control
Don't let sunk cost fallacy keep you trapped. The sooner you switch to owning your core tech, the sooner you stop bleeding potential. Start with a Technical Blueprint for a vendor exit strategy.
