What is custom software?
Custom software” Definition ✓ Differences to standard software ✓ Costs ✓ Law & Data Protection Switzerland ✓ Read now!
The most important information about custom software in brief
- custom software is developed for an individual order and represents processes, data models or interfaces precisely.
- Custom software is targeted by order programmed, standard software is a finished product for many users.
- Costs for custom software: Higher initial investments, but no ongoing license fees. Price range between CHF 20,000 and 300,000. More for higher requirements.
- Cloud & location: Operation is possible both within our own infrastructure and in Swiss cloud regions; industry-specific requirements may require stricter rules.
How do individual software and standard software differ?
Individual software is developed for an individual client and represents their processes and interfaces. Standard software, on the other hand, is a finished product that provides the same range of functions for all customers.
When is custom software worthwhile?
The use of custom software is worthwhile for you if your processes, data models or integrations cannot be adequately represented with standard software. It is particularly useful when unique requirements on your part exist or when existing systems need to be connected to each other.
Typical decision points for custom software:
- Special processes: When processes cannot be covered with the functions of current standard solutions.
- integration: When systems, machines or databases need to be connected via interfaces that are not provided for in standard software.
- Industry requirements: When regulatory requirements or specific standards must be taken into account.
- Scale: When software needs to grow and expand.
- Data sovereignty: When complete control over data, source code, and infrastructure is desired or necessary.
Examples of custom software
- A production plant wants to bundle machine control, quality control and reporting in one system.
- A Marketplace provider develops a platform that combines payment systems, booking logic and user administration.
- One cantonal authority requires an application that combines data from different registers.
A Federal Office wants to speed up an administrative process with the help of AI, but is bound by strict data protection requirements.
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How much does custom software cost?
Die Software development costs are primarily caused by actual development costs, further development, ongoing maintenance and operation. A first powerful software for market testing (MVP) costs between CHF 20,000 and 60,000, platform software between CHF 80,000 and 300,000 and an app between CHF 60,000 and 200,000.
- Scope of features: The more modules and features, the greater the development effort.
- user interface: Sophisticated designs and interactions require more development time.
- Integrations: Interfaces to third-party systems or machines can be complex.
- Scale: Systems with high performance and reliability requirements require additional architecture and infrastructure.
- Maintenance and development: Even after go-live, expenses are incurred for corrections, updates and new functions.
How does a custom software project work?
The development of custom software takes place in several phases: First, requirements are identified and a concept is created, followed by development. This often involves implementing a Minimum Viable Product (MVP) that only contains the core functions and enables initial use. After go-live, the software is operated, maintained and expanded.
- 1. Requirements analysis: Recording of processes, data flows and interfaces.
- 2. Concept: Defining architecture, data models, security requirements, and schedule.
- 3. Development with MVP: First, an MVP is programmed that contains the most important functions. It is used to make the software deployable very quickly and to incorporate feedback from real use. It is then expanded into a comprehensive solution.
- 4. Tests: Checking the software for functionality, security, and performance.
- 5. Introduction: Deployment for users, including training.
- 6. Operation and maintenance: Bug fixes, updates, and ongoing adjustments.
In the private sector, agile methods such as Scrum or Kanban are used, which enable the gradual development and integration of an MVP.
The HERMES project management model is often used in public administration. It divides projects into clearly structured phases with defined roles and milestones.
You want to know how the Working with a software development team looks? Here you can find our roadmap for creating custom software.
Which legal aspects are relevant for custom software in Switzerland?
When developing and using custom software in Switzerland, particular attention must be paid to data protection, contract drafting and requirements of the respective sector. In addition, European regulations such as the GDPR or the AI Act be relevant when data or user relationships go beyond national borders.
Data protection for custom software in Switzerland
- The revised Data Protection Act (RevDSG) has been in force since September 1, 2023.
- Companies must document the processing of personal data, implement technical and organizational measures and fulfill information requirements.
- Order processing requires a contract that regulates responsibilities, measures and rights.
Contracts and rights for creating custom software
In the case of individual software, a work contract is usually concluded. This determines which services are owed and how the rights to the source code are regulated.
Alternatively, a service contract can be used, which does not focus on a finished product but on ongoing service.
Rights of use and ownership of the source code should be clearly stated in the contract. Escrow agreements can be used as a hedge.
Procurement of individual software for public administration:
The federal government, cantons and municipalities work with templates such as the sample contracts from the Coordination Conference of the Construction and Real Estate Bodies of Public Builders (KBOB) or the terms and conditions and contract templates from the Swiss Digital Administration.
Administrative projects usually follow the HERMES standard, which also takes legal and organizational aspects into account.
European requirements for custom software
The General Data Protection Regulation (GDPR) is also relevant for Swiss companies if Data from people from the EU be edited.
The EU AI Act has been in force since 2024 and has provided for obligations for artificial intelligence systems since 2025.
How is custom software operated in the cloud and with data location in Switzerland?
Individual software can be used both in Own infrastructure as well as in the cloud Be operated. In Switzerland, the location of the data plays an important role, as legal requirements and internal guidelines repeatedly require storage within the country.
Operation of custom software by Swiss SMEs
For small and medium businesses (SMEs) in Switzerland Applies none legal obligation to store data in Switzerland. However, the requirements of the revised Data Protection Act (RevDSG) and, if there is an EU connection, from the GDPR always apply:
- RevDSG: Allows data processing abroad as well, provided that adequate data protection is guaranteed. Countries without an adequate level of protection (e.g. USA without a specific agreement) must have additional guarantees.
- GDPR: Complies with RevDSG in this regard, but also requires guarantees for data transfers to third countries.
For Swiss SMEs without international business It is often easier to choose cloud regions within Switzerland, as this eliminates questions about data transfer.
For SMEs with EU customers It is advisable to use providers who offer a clear legal basis for data transfers.
There is no legal obligation to store data exclusively in Switzerland, unless required by industry regulations, such as the financial market supervisory authority or the healthcare sector.
Cloud Options for Custom Software in Switzerland
- Hyperscalers with CH regions: Providers such as Microsoft Azure operate data centers in Zurich and Geneva. Data can only be stored there in Switzerland.
- Public Clouds Federation: The Federal Administration has a special framework that regulates the use of public cloud services.
- Swiss Government Cloud (SGC): A project by the Federal Office of Informatics and Telecommunications, running from 2025 to 2032, which provides a separate cloud environment for federal agencies.
Development of custom software in Switzerland
Individual software differs from standard software in that it can map your processes as your team needs and All desired interfaces and functions Bring along.
Creating custom software is always worthwhile for you when there is no other software that meets your expectations. In this case, your team typically works with a compromise solution, which is also associated with performance losses.
We at Axisbits create your custom software. We will ensure that you can work free of guardrails in the future and that the software meets your exact requirements. You can find successfully implemented software projects in our portfolio.
If you already have a project idea on the table Get in touch with us!
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Custom software — frequently asked questions and answers
Durch klare vertragliche Regelungen zu Eigentum am Quellcode, Zugriff auf Dokumentation und Datenexportformate. Escrow-Vereinbarungen können zusätzliche Sicherheit bieten.
A small project or an MVP can be implemented within a few months. Larger systems require between six months and more than a year, depending on the scope.
Yes, a hybrid approach is often adopted. Standard software performs generic functions such as Office or CRM and the individual software supplements or integrates further processes.
Open source libraries or frameworks are often used to reduce development costs. License conditions must be checked, especially if the software is distributed or distributed commercially.
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