The Difference Between Vertical and Horizontal SaaS

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SaaS stands for “Software as a Service” and refers primarily to subscription-based applications that you can use online, such as Salesforce, Slack, or Zoom. Since SaaS businesses typically operate on a “pay as you go” model, their customers can easily integrate their services with minimal upfront costs.



There are two main approaches to running a SaaS bulgaria telegram number database business - the horizontal and vertical SaaS models. This article breaks down the two SaaS business styles into simple terms and lists the differences and reasons to consider for each.



Table of contents
What is SaaS (Software as a Service)?
What is Vertical SaaS?
Vertical SaaS Example
Advantages and Disadvantages of Vertical SaaS
What is Horizontal SaaS?
Horizontal SaaS Example
Pros and Cons of Horizontal SaaS

What is SaaS (Software as a Service)?

SaaS, or "Software as a Service," refers to businesses that offer web-based applications. SaaS applications are easier to get started with than traditional software that you have to install on your computer because you can access them in a browser simply by logging in. Also, updates to the service are often added automatically, and you don't need to pay for newer versions of the program.


Well-known examples of SaaS include Dropbox, MailChimp, Google Apps (G Suite), and Docusign.


What is Vertical SaaS?

Vertical SaaS refers to services that are targeted only at a specific industry and are designed to solve problems unique to that industry. This is a relatively new approach compared to horizontal SaaS.