Custom Software vs. Off-the-Shelf: Making the Right Choice for Your Operation

You know you need better software. The question is: what kind?

Enterprise platforms cost $50K-$500K+ but promise everything. Basic tools like Greasebook are affordable but limited. Custom software could be perfect but sounds expensive and risky.

How do you choose?

This guide gives you a decision framework based on helping dozens of Permian Basin operators make this exact choice.

The Software Landscape for Oil & Gas

Option 1: Off-the-Shelf / SaaS Tools

Examples:

• Greasebook: Basic production tracking, $15-25/well/month
• Oildex: Supply chain and invoicing
• WellSaid: Production and revenue accounting
• Quorum: Enterprise ERP and accounting

Strengths:

• Fast deployment (days to weeks)
• Proven functionality
• Lower upfront cost
• Regular updates from vendor
• Support included

Weaknesses:

• May not fit your workflow
• Limited customization
• Monthly/annual fees forever
• Vendor lock-in (your data trapped in their system)
• Features you don't need (but pay for)

Best For:

• Standardized processes
• Common workflows
• Quick deployment needs
• Limited budget
• Small operations (<50 wells)

Typical Cost: $500-$5K/month depending on well count and features

Option 2: Enterprise Platforms

Examples:

• Enverus (DrillingInfo): Comprehensive E&P platform
• P2 BOLO: Production and land management
• Quorum Energy Suite: Full ERP
• OSIsoft PI System: Real-time data infrastructure
• Validere: Emissions and ESG management

Strengths:

• Comprehensive functionality
• Mature products
• Industry standard
• Strong support
• Proven at scale

Weaknesses:

• Expensive ($50K-$500K+ annually)
• Long implementation (6-12+ months)
• Complex (requires dedicated staff)
• Overkill for small operators
• Rigid pricing (enterprise deals)

Best For:

• Large operators (500+ wells)
• Complex operations
• Full digital transformation
• Enterprise budgets
• Dedicated IT staff

Typical Cost: $100K-$1M+ initial + $50K-$500K/year

Option 3: Custom Software

What It Is: Software built specifically for your operation, your workflow, your needs.

Strengths:

• Perfect fit for your workflow
• Build only what you need
• Own the code (no vendor lock-in)
• Flexible evolution as needs change
• Integration with your existing systems

Weaknesses:

• Higher upfront cost than SaaS
• Longer deployment than off-the-shelf
• Need to find right development partner
• You own maintenance responsibility
• No out-of-box industry best practices

Best For:

• Unique workflows
• Integration needs
• 50-500 wells (the middle ground)
• Competitive advantage needs
• Long-term ownership

Typical Cost: $50K-$200K initial + $10K-$30K/year maintenance

Option 4: Hybrid / Configurable Platforms

What It Is: Platforms designed for configuration and customization (like our WellPulse product).

Examples:

• WellPulse (our product)
• Some newer SaaS tools with APIs
• Low-code platforms configured for O&G

Strengths:

• Faster than full custom
• More flexible than off-the-shelf
• Moderate cost
• Some standardization + customization
• Easier updates than full custom

Weaknesses:

• Still emerging category
• Less proven than enterprise
• May still have limitations
• Requires right platform choice

Best For:

• Operators wanting middle ground
• Standard + unique needs
• Reasonable budget
• Faster deployment preference

Typical Cost: $10-30/well/month + $20K-$50K setup

Decision Framework: What's Right for You?

Step 1: Define Your Requirements

Core Questions:

1. What problems are you trying to solve?

   • List specific pain points
   • Prioritize by impact
   • Identify must-haves vs. nice-to-haves

2. What workflows do you need to support?

   • Map current processes
   • Identify what works vs. what doesn't
   • Define ideal future state

3. What systems need to integrate?

   • SCADA systems
   • Accounting software
   • Third-party data sources
   • Existing databases

4. Who are the users?

   • How many people?
   • What roles? (pumpers, office, management)
   • What devices? (desktop, mobile, tablet)
   • What technical skill level?

5. What's your timeline?

   • How urgent is the need?
   • Can you wait 3-6 months?
   • Are there regulatory deadlines?

6. What's your budget?

   • Upfront investment available?
   • Ongoing budget per month/year?
   • 1-year, 3-year cost considerations?

Step 2: Evaluate Off-the-Shelf Options

Research Process:

1. Identify 3-5 potential vendors

   • Google search + industry recommendations
   • Ask peers what they use
   • Check PBPA or industry forums

2. Request demos from each

   • See actual product in action
   • Bring specific questions
   • Ask about integration capabilities

3. Check references

   • Talk to 2-3 current customers
   • Ask about hidden costs
   • Ask about support quality
   • Ask what they wish they'd known

4. Calculate total cost of ownership (TCO)

   • Monthly/annual fees × 3 years
   • Implementation costs
   • Training time
   • Integration costs (if any)
   • Add 20% buffer for unexpected

Red Flags:

• Vendor won't show you actual product (only slides)
• Can't talk to references
• Pricing is unclear or "contact sales"
• Poor reviews from operators in your size range
• Integration requires expensive third-party

Step 3: Consider Custom Development

When Custom Makes Sense:

Yes to 3+ of these = Strongly consider custom:

• Off-the-shelf tools don't match your workflow
• You have unique competitive processes
• Integration is critical and complex
• You want to own the software long-term
• Enterprise software is too expensive
• You have 50-500 wells (right size range)
• You can afford $50K-$150K upfront
• You can wait 3-6 months for delivery
• You have technical person who can own it

How to Evaluate Custom:

Find the Right Partner:

• Ask for portfolio of similar projects
• Check references from O&G clients
• Ensure they understand your industry
• Verify they'll own integration complexity
• Confirm they offer ongoing support

Get Detailed Proposal:

• Specific features and deliverables
• Timeline with milestones
• Fixed or capped pricing
• Acceptance criteria
• Ongoing support terms

Validate Approach:

• Do they understand your problems?
• Is solution appropriately scoped?
• Are they suggesting proven technologies?
• Do they have realistic timeline?

Step 4: Calculate Return on Investment

ROI Framework:

Current State Costs (Annual):

• Staff time on manual processes: _____ hours × $/hr = $__
• Errors and rework: $_____
• Penalties or compliance issues: $_____
• Opportunity cost (delayed decisions): $_____
• Current software costs: $_____
• Total Current Cost: $_____

Proposed Solution Costs:

• Initial investment: $_____
• Ongoing annual cost: $_____
• Training time: _____ hours × $/hr = $__
• Total Year 1 Cost: $_____

Expected Benefits (Annual):

• Time saved: _____ hours × $/hr = $__
• Errors eliminated: $_____
• Penalties avoided: $_____
• Better decisions: $_____ (production optimization, etc.)
• Other benefits: $_____
• Total Annual Benefit: $_____

ROI Calculation:

• Year 1 ROI = (Benefit - Year 1 Cost) / Year 1 Cost
• Payback Period = Total Year 1 Cost / (Monthly Benefit)

Rule of Thumb:

• 100%+ ROI in Year 1 = Strong case
• 50-100% ROI in Year 1 = Good case
• <50% ROI in Year 1 = Marginal, look at 3-year

Real-World Decision Examples

Example 1: 40-Well Operator Chooses Off-the-Shelf

Situation:

• Using Excel and paper
• Needs basic production tracking
• Limited budget
• Simple workflow
• Wants fast deployment

Evaluation:

• Tried Greasebook demo
• Talked to 2 operators using it
• Matches 80% of needs
• $15/well/month = $600/month = $7,200/year

Decision: Greasebook

Result:

• Deployed in 2 weeks
• Immediate improvement over Excel
• Some workflow compromises
• Happy with choice for now
• May consider custom in 2-3 years as they grow

Example 2: 120-Well Operator Chooses Custom

Situation:

• Tried 3 off-the-shelf tools
• None fit their workflow
• Have unique competitive process
• Integration critical (legacy SCADA, accounting)
• Budget available

Evaluation:

• Off-the-shelf: $3K-5K/month = $36K-60K/year
• Custom quote: $85K + $2K/month = $109K Year 1, then $24K/year
• 3-year custom TCO: $157K
• 3-year SaaS TCO: $108K-180K (but doesn't solve all problems)

Decision: Custom

Reasoning:

• Perfect fit beats compromise
• Owns the software
• Integration solved properly
• Competitive advantage preserved

Result:

• 5-month project
• Exactly what they needed
• ROI in 9 months
• Very happy 2 years later

Example 3: 200-Well Operator Chooses Hybrid

Situation:

• Growing fast
• Needs production management + ESG tracking
• Some standard, some unique needs
• Wants reasonable cost
• Needs faster deployment than full custom

Evaluation:

• Enterprise: Too expensive ($150K+/year)
• Basic SaaS: Too limited
• Full custom: 6+ month timeline
• WellPulse: $25/well/month + $30K setup

Decision: WellPulse (our product)

Reasoning:

• Mostly standard functionality
• Some customization available
• Affordable ($60K/year + $30K setup)
• 8-week deployment
• Can add custom features later

Result:

• Deployed in 8 weeks
• 90% of needs met out of box
• $20K custom features added in Year 2
• Total cost still <$100K/year

Example 4: 500-Well Operator Chooses Enterprise

Situation:

• Large operation
• Complex workflows
• Needs comprehensive platform
• Has dedicated IT staff
• Enterprise budget

Evaluation:

• Basic tools: Too limited
• Custom: Too much to build
• Enterprise: Comprehensive solution

Decision: P2 BOLO + Enverus

Cost: $300K/year

Reasoning:

• Scale justifies cost
• Needs enterprise features
• Has staff to manage it
• Industry standard platform

Result:

• 12-month implementation
• Comprehensive functionality
• Expensive but worth it at their scale

Common Mistakes to Avoid

Mistake 1: Choosing Based on Sales Presentation

The Problem: Impressive demo doesn't mean it fits your workflow.

Better Approach:

• Bring your actual data
• Work through your actual workflows in demo
• Talk to references
• Try free trial if available

Mistake 2: Not Considering Total Cost of Ownership

The Problem: Focusing only on monthly fee, not 3-year total cost.

Example:

• SaaS at $2K/month = $72K over 3 years
• Custom at $80K + $2K/month = $152K over 3 years
• But if custom fits perfectly and SaaS needs $50K workarounds...
• Real SaaS TCO = $122K (not $72K)

Better Approach: Calculate 3-year TCO including:

• License/subscription fees
• Implementation costs
• Integration costs
• Training time
• Workaround costs
• Ongoing support

Mistake 3: Underestimating Integration Complexity

The Problem: "It has an API so we can integrate" often becomes nightmare.

Reality:

• APIs exist but aren't documented
• Integration requires expensive middleware
• Data formats don't match
• Real-time sync not supported

Better Approach:

• Get integration specifics in writing
• Talk to customers who've integrated
• Budget 50-100% more for integration than vendor estimates
• Consider integration as first-class requirement

Mistake 4: Ignoring User Adoption

The Problem: Best software is useless if users won't use it.

Example:

• Bought comprehensive platform
• Too complex for pumpers
• They still use paper
• Software sits unused

Better Approach:

• Involve users in evaluation
• Prioritize ease of use
• Plan for change management
• Start simple, add features gradually

Mistake 5: Choosing Lowest Price

The Problem: Cheapest option often costs more in the long run.

Examples:

• Cheap SaaS doesn't fit workflow → spend more time on workarounds
• Cheap custom developer → poor quality, expensive to fix
• Free/open-source → no support when you need it

Better Approach:

• Focus on value, not cost
• Pay for quality
• Consider 3-year TCO
• Factor in risk and hidden costs

The Middle Ground: Our WellPulse Approach

The Market Gap We Saw:

• 50-500 well operators
• Too sophisticated for Greasebook
• Can't afford enterprise platforms
• Custom is perfect but takes time

Our Solution: Configurable platform with custom features option.

How It Works:

1. Core platform (production management, ESG, equipment tracking)
2. Map-based interface (unique to us)
3. Standard features work for 80% of needs
4. Custom features added for your unique needs
5. Separate database per client (not multi-tenant)
6. On-premise or cloud deployment

Pricing:

• $10-30/well/month (depends on features)
• $20K-$50K setup and configuration
• Custom features quoted separately

Best For:

• Operators wanting middle ground
• Need faster than full custom
• Want flexibility of custom
• Affordable alternative to enterprise

Learn More About WellPulse →

Take Action

Free Software Selection Consultation:

We'll help you decide between custom, off-the-shelf, or hybrid:

• Review your specific needs
• Evaluate available options
• Calculate 3-year TCO for each
• Provide unbiased recommendation
• Connect you with vendors (including competitors) if appropriate

No obligation, no sales pitch—just honest guidance.

Schedule Free Consultation →

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About Strataga

We build custom software and offer WellPulse (our configurable platform) for Permian Basin operators. Our goal is helping you find the right solution—whether that's our software, a competitor's, or something custom-built.

Explore Our Software Solutions →