What is SaaS And What Types of SaaS are Dominating the Industry?

Share the post in social media

Just like in any industry, some kinds and leaders dominate the market. Before starting my career, I was uninformed of the scale of the SaaS or cloud facilities industry. 

We explore the kinds and categories of SaaS applications in the marketplace. It might help determine the appropriate application for your organization’s software solutions.

What is SaaS

SaaS is a cloud-based registration solution that makes software conveniently obtainable over the Internet. It removes the demand to download software onto your computer and thus can provide regular updates and assistance.

The SaaS industry has been steadily growing over the past decade. The marketplace size in 2020 doubled that of 2014 to 157 billion United state dollars. Leaders in the sector consist of Salesforce, Microsoft, and IBM, which have the largest market share in the global SaaS market.

The development of the market can be credited to a combination of technological development, customer practices as well as need. Recently, outside aspects such as the COVID pandemic have created market rises.

According to Gartner, the pandemic has seen companies compelled to concentrate on ‘protecting capital as well as optimize IT expenses, support and protect a remote labor force, and ensure resiliency. Post-pandemic spending on cloud frameworks and software is expected to rise.

capterra saas market size chart[Image: Source]

Type of SaaS

There are two various kinds of software as a Service version: horizontal and vertical.

Horizontal SaaS

A Horizontal SaaS is a structure well used by well-known cloud services such as Salesforce, Microsoft, Slack, Hubspot, etc. The horizontal design permits industries to accommodate a broad client base from varying markets to run their services efficiently and effectively.

The design makes it less complicated to develop or wrap their offering. Indicating they can increase their solutions to incorporate a selection of SaaS classifications under one roof. For instance, Google or Microsoft developed communication products like Google Hangouts and Microsoft Teams.

Vertical SaaS

On the other hand, Verticle SaaS options are created to target a particular niche industry. Instances consist of insurance coverage, trade, or an underserved sector. The model concentrates on the sector’s verticals and develops options for the niche sector’s discomfort points and needs.

For instance, Guidewire is a SaaS solution that develops software for the insurance industry or Toast software for the restaurant sector.

Within the SaaS market, there are groups of applications that offer software solutions dependent on your business, market, or consumer needs.

Diagram demonstrates the kinds of straight, vertical, and hybrid SaaS businesses drawn from Crozdesk’s SaaS and Cloud Fads 2018.

crozdesk saas cloud trends[Image: Source]

CRM or Customer Relationship Managemen

Customer data is a beneficial resource for any kind of service. CRMs permit businesses to collect and store all their client data reliably and safely. In storing client data effectively, it can assist in boosting customer partnerships, consumer segmentation, and better protection of data personal privacy.

One of the most common users of CRM software applications is B2C businesses, which sell straight to consumers. The departments within those businesses that utilize CRM software are sales, marketing, and client service teams.

CRM application makes it possible for customers to automate recurring tasks, develop sales reports, forecast, and also range processes gradually.

They have the ability to take care of interaction with customers and also take care of customer data in a centralized data source across your whole organization.

Popular CRMs consist of Zendesk, Hubspot, Pipedrive, Mailchimpand Salesforce. 

capterra crm by departments charts
[Image: Source]

HR or Human Resources 

Within every company, there is a human resource (HR) division. They are responsible for handling and supporting employees, whether it be training, recruitment, or administering employee benefits.

HUMAN RESOURCES SaaS software services give several benefits to business users. The capability to take care of staff members in regard to function routines, holidays, authorized leave, etc. The software can also track workers’ efficiency, time with the firm and help maintain essential workers.

The HR division is an integral part of a company that provides updates and interaction to staff members. This assists in developing the company’s joint society by maintaining staff members informed, involved, and efficient.

Most commonly utilized HR SaaS options for software comprise HR Peop, Breathe HR and Bullhorn. You can discover them all online SaaS application Adapter Collection, and even more, recognize precisely how they can be incorporated into your combination technique.

type of saas hr


Keeping track of finance for any kind of service is vital. Therefore, account and billing SaaS application options can provide myriad benefits to the individual. They assist you in monitoring cash flow, deals, and budgets.

Using a SaaS application to handle a company’s finances can save effort and time, specifically in time invested in integrating accounts, finiancial mistakes, data entry, payroll, tax obligations, and client payments.

Regularly many industries using account and/or invoicing SaaS software include banking, organization services, production, retail, and the government. Popular accounting or billing SaaS businesses consist of Quickbooks, Chargebee, and Chargify.


In the past year, communication-based SaaS software applications such as Zoom and Slack have seen unprecedented usage.

Software solutions for communication have replaced traditional telephone calls, office methods and email as well as in-person meetings, video clips, chat messages and voice calls.

When a communication SaaS is incorporated with collaborative SaaS suppliers, such as Google Drive, employees can share and review tasks—enabling functions such as getting automated in-app notifications when changes are made.

Giving a seamless service, far better cooperation, and interaction is located in one place.

type of saas -communication

Project Management

Companies typically stabilize between multiple tasks at once, or at least tasks are juggled within teams. A Project Management SaaS is a service that can assist businesses or teams to remain arranged and on top of their ongoing projects.

They give the capacity to plan, track, allot, schedule, connect, and collaborate with other team members on a project in one place.

PM SaaS can reveal the development of the task as well as track what has actually been completed in your team. Trello, a project management application, permit teams to handle tasks, organize tasks, and maintain high productivity.

Project Management SaaSs are generally utilized by larger organizations in industries such as Services (IT, Consulting), Financial, Marketing, and Advertising. Popular SaaS vendors consist of Trello, GitHub, and also Basecamp.

Content Administration System (CMS) and also eCommerce.

A CMS is generally web-based software or a low-code toolkit that assists a user in creating a website or application. It provides the user the capacity to create, handle and change content without recognizing how to code or technical knowledge.

WordPress is a fantastic instance of a CMS that provides the foundation for a website. An ecommerce instance would certainly be Shopify permitting business owners to include products, change content, and monitor modifications.

CMS (Content Management Systems ) have numerous benefits. They are user-friendly, allow fast deployment and effortless upkeep and maintenance, are cost-effective, scalable, and have integrated search engine optimization benefits.

CMS options are used throughout various industries to promote new products, manage social media sites or publish articles.

Other popular SaaS solutions include Enterprise Resource Preparation (ERP), Consumer Experience, Marketing/Email, Product Management, and others. 

What Type of SaaS is dominating the industry?

The horizontal SaaS design controls the SaaS market, which you can see from G2’s Group reports:

  • Microsoft: Teams, OneDrive, SharePoint, PowerPoint, Office (Collaboration & Interaction).
  • Hubspot: Sales Hub, CMS Hub, Marketing Hub, Academy (CMS, Marketing, Help Desk), Service Hub.
  • Zoom Video Communications:  Zoom, Zoom Scheduler (Communication), Zoom Rooms, Zoom Video Webinar, Keybase.
  • Atlassian: Trello, Jira, Confluence, Bitbucket (Project/ Project Management, Helpdesk), Jira Service Management.
  • ActiveCampaign: ActiveCampaign (Marketing).
  • Smartsheet: Smartsheet, 10,000ft, Smartsheet for G-Suite (Project Management), Smartsheet for Gmail Add-On for G-Suite.
  • Google: Drive, Forms, Analytics (Collaboration & Communication), Docs, Hangouts, 
  • Cisco: Webex Meetings, Jabber, Cisco Umbrella (Communication & Security), Webex (formerly Webex Teams), Duo Security, 
  • ZoomInfo: ZoomInfo, ZoomInfo Engage, FormComplete (Sales), NeverBounce, InboxAI.
  • SurveyMonkey: SurveyMonkey, Market Research Solutions (Survey & Customer Experience), Enterprise, Wufoo, GetFeedback.

The top ten provided SaaS services are all prominent brand names that provide products that can be made use of whatever your industry is.

The factors for this dominance could be a result of the various advantages of horizontal SaaS model supply for not only the designer but additionally their clients.

For example, a horizontal SaaS has a broad target and an extra accessible market of potential customers who are simpler to get to. Products can be presented to the market quicker, and customers have experience with substantial horizontal SaaS businesses.

For their customers They are a cost-effective solution. As an example, making only one investment in a business software service. Meaning marketing or project management requirements can be accomplished from one platform. This can then lead to better collaboration among the client’s internal groups.

Vertical SaaS For Specific Niche Sectors Is Growing

Vertical SaaS companies can target specific pain factors experienced in their market. They can handle segments of the SaaS market or specific niche fields that are underserved by providing much more organizational value to a narrower target market.

Vertical SaaSs can relocate far from the oversaturated markets and offer better outcomes for their specific fields. Their primary advantage is the ability to go deep right into the market to provide options for particular challenges dealt with, unlike a straight SaaS skimming the surface area of numerous sectors.

Will vertical SaaS disrupt the oversaturated SaaS software dominating the industry? They get on the increase so that we can wait and see.

Share the post in social media

Leave a Comment