Vertical SaaS

Vertical SaaS, also known as vertical cloud, is a subset of software solutions that serve niche industries. Companies in the vertical SaaS industry develop software for a specific industry problem, and they do not deviate from that focus. An example of a vertical SaaS company is Procore TechnologiesProcore Technologies, which develops software specifically for construction management. Vertical SaaS companies are cornering specific target markets, which is a more conservative approach than horizontal SaaS companies.

Vertical SaaS, also known as vertical cloud, is a subset of software solutions that serve niche industries. Companies in the vertical SaaS industry develop software for a specific industry problem, and they do not deviate from that focus. An example of a vertical SaaS company is Procore Technologies, which develops software specifically for construction management. Vertical SaaS companies are cornering specific target markets, which is a more conservative approach than horizontal SaaS companies.

The vertical SaaS market is more narrow than that of its counterpart horizontal SaaS, however, the retention rates amongst vertical SaaS companies is significantly higher due to specific software needs of niche industries. The niche market aims to satisfy specific needs, production, quality, and price points while reaching the intended demographic that it is targeting. Vertical SaaS products are developed to ascertain those goals.

Niche industries include things like forestry technology, construction management, warehousing, insurance, drones, manufacturing, life sciences, safety assessment, legal, agriculture, and energy. A niche industry can be defined as a segment of a bigger industry that has unique needs, preferences, and identity that causes the company or companies to deviate from the larger market.

Vertical SaaS, also known as vertical cloud, is a subset of software solutions that serve niche industries. VerticalCompanies in the vertical SaaS isindustry designeddevelop software for a specific industry problem, and developed to solve either individualthey problems/do issuesnot ordeviate manyfrom businessthat problemsfocus. DespiteAn businessexample modelsof a vertical SaaS company is Procore Technologies, verticalwhich develops software specifically for construction management. Vertical SaaS companies are cornering specific target markets, which is a more conservative approach than horizontal SaaS companies.

Software-as-a-Service began in the 1960s but was referred to as “utility computing” or “time-sharing.” It consisted of centralized hosting of business applications and the mainframe providers like IBM offered database storage services for computing power to enterprise businesses.

In the 1990s, with the Internets generation, the SaaS evolved into a new type of centralized computing called “application service providers (ASP).” ASP is defined as a “company that offers individuals or enterprises access to applications and related services over the Internet.”

The vertical SaaS market is more narrow than that of its counterpart horizontal SaaS, however, the retention rates amongst vertical SaaS companies is significantly higher due to specific software needs of niche industries. The niche market aims to satisfy specific needs, production, quality, and price points while reaching the intended demographic that it is targeting. Vertical SaaS products are developed to ascertain those goals.

SaaS, as it is understood today, is the evolution of the ASP model, or a business model where customers pay to use software that is hosted by a company on a remote server. An example of a SaaS company is Netflix, Amazon Prime, etc. These are companies that grew in a SaaS model due to flexibility in customer use. An example of vertical SaaS is Internet Pipeline Inc., which focuses on developing customer relationship management (CRM) software solely for the insurance industry, or Kenandy Inc., which focuses on manufacturing enterprise resource planning (ERP).

Niche industries include things like forestry technology, construction management, warehousing, insurance, drones, manufacturing, life sciences, safety assessment, legal, agriculture, and energy. A niche industry can be defined as a segment of a bigger industry that has unique needs, preferences, and identity that causes the company or companies to deviate from the larger market.

In 2011, the consulting firm Forrester Research Inc. predicted that major growth in the vertical SaaS market would occur, referring to it as one of the “five trends that will change cloud sourcing.” Vertical SaaS is commonly referred to as vertical cloud.

Vertical SaaS is a subset of software solutions that serve niche industries. Vertical SaaS is designed and developed to solve either individual problems/ issues or many business problems. Despite business models, vertical SaaS companies are cornering specific target markets, a more conservative approach than horizontal SaaS companies.

Software-as-a-Service began in the 1960s but was referred to as “utility computing” or “time-sharing.” It consisted of centralized hosting of business applications and the mainframe providers like IBM offered database storage services for computing power to enterprise businesses.

In the 1990s, with the Internets generation, the SaaS evolved into a new type of centralized computing called “application service providers (ASP).” ASP is defined as a “company that offers individuals or enterprises access to applications and related services over the Internet.”

SaaS, as it is understood today, is the evolution of the ASP model, or a business model where customers pay to use software that is hosted by a company on a remote server. An example of a SaaS company is Netflix, Amazon Prime, etc. These are companies that grew in a SaaS model due to flexibility in customer use. An example of vertical SaaS is Internet Pipeline Inc., which focuses on developing customer relationship management (CRM) software solely for the insurance industry, or Kenandy Inc., which focuses on manufacturing enterprise resource planning (ERP).

In 2011, the consulting firm Forrester Research Inc. predicted that major growth in the vertical SaaS market would occur, referring to it as one of the “five trends that will change cloud sourcing.” Vertical SaaS is commonly referred to as vertical cloud.