Navigating the SaaSification movement

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As the SaaS model gravitates towards ubiquity and the rate of cloud adoption continues to increase, more companies are transitioning to recurring billing models. The trend of SaaS migration is commonly referred to as ‘SaaSification,’ and many businesses are finding that they need to ‘saasify’ their offerings to remain competitive. However, the SaaS landscape is rapidly evolving at the same time as businesses are preparing to make the switch, forcing newcomers to embrace novel tactics to stand out in a saturated market. 


Recent reports show that the unique number of apps in usage per company is growing by about 30% year over year, with enterprises using on average 288 different SaaS apps across their businesses. 


Horizontal SaaS focuses on attracting subscribers from any sector or industry, whereas vertical SaaS focuses on attracting subscribers within specific industries and supply chains. While established businesses may still benefit from horizontal SaaS, most companies, especially startups or companies migrating to a SaaS model, will require vertical SaaS.

Vertical SaaS provides a cost-effective, customizable business model that allows providers to adapt features according to subscriber demand and industry disruptions. Companies can gain a competitive advantage with better agility, more upselling opportunities, and lower customer acquisition costs (CAC).  

Micro-SaaS, a subset of vertical SaaS, is where businesses develop niche extensions or add-ons for ERP solutions and offer them on a subscription basis. Employing micro-SaaS models can offer a compromise for companies looking to dip their toes into the SaaS ecosystem before migrating their entire business. 


Download our whitepaper for an in-depth look at what finance leaders need to know to navigate the future of a rapidly evolving SaaS industry. 

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