Vertical Software

A vertical market is one that supplies goods to a specific industry. For example, a MIDI keyboard manufacturer develops products for a vertical market because the keyboards are used only by people who want to create music on their computers. Vertical market software, therefore, is software developed for niche applications or for a specific clientele.

Investment, real estate, and banking programs are all vertical-market software applications because they are used only by a specific group of people. Scientific analysis programs, screenplay-writing programs, and programs used by medical professionals are also vertical-market software because they cater to specific audiences.

There is typically not much competition in vertical markets, but it can still be a risky industry because developers are highly dependent on specific clients to buy their products. The opposite of vertical software is horizontal software, which is developed for the general public or multiple industries.

Published: 2007