Most UK SMEs accumulate SaaS tools over time. A CRM here, a project management tool there, a help desk, a billing platform, a reporting dashboard. Each was bought to solve a specific problem. Together, they create a fragmented, expensive, and hard-to-manage software stack. Replacing multiple SaaS tools with one custom platform cuts costs, eliminates data silos, and gives you full control over your software.
We help UK businesses consolidate their SaaS stacks into single, purpose-built platforms. The typical result is 40 to 60 percent cost reduction, fewer integration headaches, and software that fits the business rather than the other way around.
Why Do SaaS Stacks Grow Out of Control?
SaaS tools are easy to buy. A team lead signs up, adds a credit card, and the tool is live. Over two or three years, this leads to tool sprawl. According to BetterCloud research, the average company uses 110 SaaS applications, and SaaS spend has grown significantly as a percentage of total software budgets. For UK SMEs, the number is typically 8 to 15 tools for businesses with 50 to 250 employees.
The problems with this approach compound over time:
- Cost: Each tool has its own per-seat pricing. 50 users across 10 tools at an average of 30 per seat is 180,000 per year.
- Data silos: Each tool stores its own data. Customer information is split across CRM, help desk, and billing. Reporting requires manual export and consolidation.
- Integration gaps: Tools do not talk to each other perfectly. Staff do manual data entry to keep systems in sync.
- Admin overhead: User management, billing, and support across 10 tools consumes real staff time.
- Security surface: More tools mean more access points, more vendors with access to your data, and more places for security gaps.
Which SaaS Tools Should You Consolidate First?
Not every SaaS tool should be replaced. The goal is to consolidate the tools that are central to your core business workflows, where the benefits of integration and ownership are highest. Keep commodity tools where standardisation is an advantage.
Replace with custom software:
- CRM and sales pipeline management
- Project management and task tracking
- Help desk and customer support
- Reporting and business intelligence
- Workflow-specific tools (scheduling, inventory, operations)
Keep as SaaS:
- Email (standard, well-served by Google or Microsoft)
- Video conferencing (commodity, no advantage in building)
- File storage (standard, cheap, reliable as SaaS)
- Accounting software (specialised, compliance-heavy, better bought)
See our guides on replacing specific platforms: Salesforce, HubSpot, Asana, Zendesk, and Monday.com.
How Do You Build a Consolidated Platform?
Building a single platform to replace multiple SaaS tools is a phased process. The goal is to deliver value early, not to build everything before anyone uses it.
- Audit current tools: Map every SaaS tool, its cost, its users, and the workflows it supports. Identify overlap and gaps. Our integration health check covers this.
- Design the unified data model: Define how customer, project, task, and support data relate in one system. This is the foundation that makes consolidation work.
- Build core module first: Start with the highest-value module, typically the CRM or project management component. Get users on it, validate, then expand.
- Migrate data: Export data from each SaaS tool and import into the new platform. This is the most technically complex step and needs careful planning.
- Build integrations: Connect the new platform to the SaaS tools you are keeping (email, accounting, file storage).
- Decommission old tools: Once users are comfortable with the new platform, cancel the SaaS subscriptions. Keep data exports as backup.
What Are the Cost Savings of Consolidation?
A typical UK SME with 50 employees using 8 SaaS tools at an average of 30 per seat per month spends 144,000 per year on subscriptions. Consolidating 5 of those tools into one custom platform:
- Build cost: 60,000 to 90,000 (one-off)
- Annual maintenance: 10,000 to 15,000
- SaaS savings: 90,000 per year (5 tools at 30 per seat, 50 users)
- Payback period: 12 to 18 months
- Ongoing annual savings: 75,000 to 80,000
Beyond cost, consolidation eliminates integration work, reduces admin time, and gives you a single source of truth for reporting. The operational improvement is often worth more than the cost saving. Use our SaaS ROI calculator to model your specific situation.
What Are the Risks of Consolidation?
Consolidation is not without risk. The main risks are:
- Migration complexity: Moving data from multiple SaaS tools into one system requires careful mapping and validation. This is where projects often stall.
- Change management: Staff need to learn a new system. Training and phased rollout mitigate this. See our guide on custom software risks.
- Scope creep: Building one platform to replace five tools can expand in scope. Clear prioritisation and phased delivery control this.
- Single point of failure: One platform means one system to keep running. Proper hosting, monitoring, and backup are essential.
These risks are manageable with the right approach. The key is an experienced development partner, a phased delivery plan, and clear scope management. Book a free discovery call to discuss your consolidation project.