What you need to know about Vertical SaaS

Vertical-SaaS
At a Glance

With the growth of vertical SaaS, the SaaS market is expanding in popularity, and horizontal SaaS businesses will face strong competition in the coming years. Vertical SaaS models allow SaaS to go deep, offering full-featured solutions that address the challenges faced by a certain vertical. Vertical SaaS companies may be created to solve a single problem or a plethora of business problems. Still, no matter what strategy they use, they all cater to a certain market.


SaaS or Software as a Service refers to the usage of cloud-based software solutions. This implies that as long as users have an internet connection, they may access them from anywhere without installing them on their PCs. Typically, SaaS products work on a subscription basis, with customers paying a monthly charge to use the program.

There’s a lot more to SaaS nowadays than there was when it first started. The creation of both vertical and horizontal SaaS has transformed business structures to reflect new objectives. Users are also more aware of the many options available on the market. To put it another way, the market has matured and is now open to new products and services.

The SaaS business is quickly expanding: reports suggest between 2019 and 2023, the worldwide SaaS market is anticipated to be valued at $60.36 billion, increasing at a 9 percent CAGR (compound annual growth rate).

When SaaS was first launched, companies concentrated on offering solutions for various sectors, also known as horizontal SaaS. Microsoft 365, Quickbooks, and Slack are just a few examples. However, in recent years, there has been a boom of vertical SaaS businesses specializing in particular sectors and building solutions for them. Veeva, Procore, and Clio are just a few examples. 

Vertical SaaS

Vertical SaaS solutions comprise software that is tailored to a certain sector. Because this is a newer trend in the SaaS market, it is not as developed as the horizontal model. A vertical SaaS solution is a collection of software solutions that cater to the demands of a certain sector. Vertical SaaS firms, on the other hand, cater to the specific demands of a particular industry, such as retail, finance, healthcare, or hospitality. 

Vertical SaaS firms may be built to tackle a single problem or a slew of business challenges, but they all cater to a certain market regardless of the strategy. In comparison to its horizontal counterparts, this strategy takes a more cautious approach to product promotion.

The vertical SaaS model doesn’t try to be everything to everyone or offer a wide range of products. Instead, it concentrates on certain industrial verticals. Its solutions are tailored to certain industry segments, which reduces the size of the possible market. 

A vertical SaaS provider takes a multi-faceted approach to the sector. However, it does not guarantee that it will cover the whole product range. However, it focuses on limiting down to certain industrial sectors exclusively. As a result, each of their solutions is tailored to a unique market.

Benefits of vertical solutions

Vertically focused SaaS software products have exploded in popularity over the last decade and will continue to do so. Vertical SaaS has many promises across sectors, especially as firms become more digitally savvy and migrate away from on-premises, in-house IT to cloud-based IT.

  • Minimal Deployment Time

Customers have their tenants rapidly provided, but commerce, like other SaaS products, would arrive pre-installed and configured for usage right away. For a given sector, the benefit is that molding or last-mile modifications may begin considerably sooner. It allows for worry-free infrastructure administration while lowering IT costs.

  • Scalability

A vertical SaaS solution implies infrastructure auto-scales to handle up-and-down cycles without wasting precious resources on tracking, monitoring, and maintenance. It also entails receiving automated, frequent software updates with seamless improvements, allowing for continual, rapid innovation. 

  • Integration

Vertical SaaS commerce would offer strong, tight, and native preconfigured integrations with other products from the start. Consider the potential of integrating ERP, billing, governance systems, payment providers, and marketing with some of the essential goods for industry.

  • Benchmarking

Commerce includes a variety of industry-specific regulatory and legal obligations that good governance processes can address. An industry-specific commerce solution provider can take on the responsibility of staying on top of these constantly changing and complicated regulations.

Vertical SaaS companies

  1. HotSchedules: Restaurant Management Software

HotSchedules is a SaaS startup that provides end-to-end restaurant management and achieves over $100 million in sales in 2018. Inventory control, personnel management, payroll services, training and development, and analytics are all included. This SaaS software helps restaurant owners interact and manage their workers more effectively. It is created with industry-specific considerations in mind, such as various timetables, shift changes, and the particular working environment of restaurants.

  1. Kinnser: Home Healthcare Software

Kinnser provides home health, hospice, and private duty clinics with web-based healthcare solutions. Kinnser has around 4,000 clients and was founded in 2003. Kinnser is meant to assist users to enhance communication, boost efficiency, and coordinate patient care from administration through point-of-care to billing. Kinnser is HIPAA-compliant as well. It provides doctors with dependable claim filing tools and eligibility checks, allowing them to focus on providing the best possible care to their patients.

  1. MyCase: Software for Legal Industry

Law firms can use MyCase to conduct their operations from anywhere. Case management, lead management, billing, client experience, and customer service are among the functions available. It helps users to easily work with customers by allowing them to manage and sync their calendars. MyCase also features a messaging tool that will enable attorneys to connect with their clients more effectively.

Vertical SaaS is currently at the same position as horizontal SaaS was 6-8 years ago. Vertical SaaS models allow SaaS to go deep, providing full-featured solutions that address the challenges of a given vertical. It’s difficult to call any vertical SaaS solution “dominant” in any sector at this point because it’s still a relatively new field.

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