Vertical SaaS VS Horizontal SaaS Model


Advancements in technology and increasing use of internet as a source of information has resulted in immense growth in SaaS industry. A large number of businesses are adopting SaaS (Software-as-a-Service) models for a number of benefits.

Benefits Of SaaS For Businesses:

  • Updates: SaaS solutions provides a seamless process for updating a software on regular intervals. Real-time software updates save business resources that would have been spent for hiring a professional to update it otherwise.
  • Scalability: Scalability of existing systems is one of the prerequisites for business growth. The solution implemented should be able to quickly respond to increased work load and should be scalable to incorporate advanced features. In case of SaaS, businesses can select the type of features they want as the business needs change. This helps them in offering quality services and delivering products in time by ensuring easy scalability.
  • Enhanced Security: A simple data breach can have immense negative impacts on a business. However, SaaS models have robust enterprise-level security that employ a holistic approach.
  • Collaboration & Team Work: SaaS models make it easier for teams spanning across different locations to collaborate for a project seamlessly.

While businesses understand the benefits of adopting SaaS models, they need to choose a suitable model as per their business architecture and needs. There are two main types of SaaS models:

  • Vertical SaaS
  • Horizontal SaaS

Both the models have different features and offer different benefits to the businesses. Let us help you understand both the models.

  • Vertical SaaS: This model is focused on creating niche-specific software solutions and thus, can be used in a specific industry only. A simple example of vertical SaaS solution may be any software specifically designed to monitor email marketing campaigns. Some real life examples of vertical SaaS include BioIQ (for health testing), Guidewire (insurance industry), etc. Vertical SaaS solutions can be referred to as purpose-built solutions.

Benefits Of Vertical SaaS:

Facilitate business growth by capturing industry-specific data

Higher returns on investment

Increased competitiveness

  • Horizontal SaaS: This model provides solutions for diverse types of industries. Some examples of software under this category are QuickBooks (can be used for accounting by any industry), HubSpot (digital marketing), Asana (Project Management Solution), etc.

Benefits Of Horizontal SaaS:

Cost-effective solutions

Better growth opportunities

Better collaboration among different departments

The choice of right SaaS model is governed by the purpose why business needs the software. Centex Technologies helps its clients in making right choices by offering expert IT consultation and solutions. To know more about SaaS models, contact Centex Technologies at (254) 213 – 4740.

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