Next Leap in Enterprise Cloud: Micro-Vertical SaaS

As enterprise SaaS evolves beyond the one-size-fits-all applications, a new model is beginning to take shape — a model whereby cloud applications are tailored not only to industries, but to deep sub-sectors of those industries. In this interview, Phil Lewis, SVP at Infor, discusses how Infor has a vision for its industry-complete platforms, the continuing evolution of embedded GenAI, and the concept of software being invisible, yet required.

- Aanchal Ghatak

Vertical SaaS is in a new chapter. With industry-centered software already accounting for more than 30% of the enterprise cloud market and growing more than double that of horizontal platforms, the next wave - “Vertical SaaS 2.0” - is now centered on micro-verticalisation, AI-native architecture, and real-time. At the leading edge of this transition is Infor, which is building cloud applications not just for industries such as manufacturing or healthcare, but for sub-sectors like dairy producers or specialty chemical plants.

“We are moving now into the realm of the micro-vertical,” says Phil Lewis, SVP at Infor, “where systems are built with a purpose to serve the unique intricacies that sit within the sectors themselves.” Excerpts:

How do you see the enterprise SaaS landscape evolving in the next 3-5 years? Are we moving into a “Vertical SaaS 2.0” era?

Over the next few years, SaaS will revolutionise organisations. Solutions will become even more tailored and cloud applications will be purpose built for very specific business needs.

But these tailored applications will extend far beyond what we consider 'traditional' verticalisation. We are moving into the realms of the micro-vertical—where systems are purpose built to compliment the unique intricacies that sit within the sectors themselves.

Take Food and Beverage for example. Traditional SaaS solutions may serve the wider industry, but there are hundreds if not thousands of micro-verticals within this sector, like bakeries, poultry or dairy producers. With the proliferation and deployment of new technologies such as AI and automation, purpose-built applications for each of these micro-sectors are now a reality. And at Infor that is exactly what we are focusing on—leading the way when it comes to deploying these systems.

What's driving the demand for industry-specific solutions vs traditional horizontal SaaS platforms?