SaaS is disrupting how we live our lives and how we do our businesses. It deeply penetrates our lives, quickly becoming one of our biggest necessities. The global market for SaaS software is $33.4 billion in 2015, and is projected to double by 2019, to $67.2 billion.
Horizontal SaaS, similar to horizontal integration, refers to SaaS companies aiming to reach as many customers as possible in their areas of expertise (mostly focusing on providing one or two types of services such as analytics, sales, and distributions.) Horizontal SaaS addresses broad business functions, the three currently with the largest market sizes are customer relationship management (CRM), Business Intelligence & Analytics, and Sales performance management, etc. Famous horizontal SaaS companies include Salesforce, Zenefits, Workday, and Slack, etc.
Vertical SaaS, similar to vertical integration, refers to SaaS companies aiming to provide comprehensive services to cover a particular market or a specific group of customers. Most focus on providing integrated solutions to solve industry-specific problems. Vertical SaaS penetrates industries such as healthcare, energy/utilities, real estate/construction, legal, and fintech, etc.