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Vertical SaaS is Dead. Long Live Vertical SaaS. - by Eli

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Vertical SaaS, and really all of software, has long been a game of applying efficiency gains to industry-wide problems in the hopes of capturing a cut of the gains via a recurring SaaS contract. One could easily predict this to continue. And in fact, early AI products have seemingly pointed in this direction. The business model for vertical SaaS after all has been predicated upon diffusing and codifying industry best practices in software. If an industry’s best practice can be made more efficient via AI, perhaps we can simply apply AI to existing processes, make them more efficient, and continue on with the SaaS licensing model. And I’m convinced this will continue, in no small part, because there are several forces working in tandem to guarantee this: First, many industries have no real desire to disrupt their current business model. Second, in the event business models do get disrupted, there will be SaaS vendors waiting to enable this. Third, the marginal cost of software may approa

Vertical SaaS is Dead. Long Live Vertical SaaS. AI, business models, and paradigm shifts Eli Dukes Feb 20, 2024 22 Share I’ll leave it to you to figure out how this picture relates to the thesis herein. Subscribe Vertical SaaS, and really all of software, has long been a game of applying efficiency gains to industry-wide problems in the hopes of capturing a cut of the gains via a recurring SaaS contract. One could easily predict this to continue. And in fact, early AI products have seemingly pointed in this direction. The business model for vertical SaaS after all has been predicated upon diff

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