Forrester: SaaS Providers Should Go Vertical

A new Forrester Research report finds that while most software as a service (SaaS) companies already have high valuations, those with specialized offerings for various vertical markets soar even higher. Customers are willing to pay a premium for cloud computing apps that meet their unique needs.

In addition, Forrester advises SaaS providers to include analytics in their offerings if they want to attract more customers. However, most enterprises won’t choose SaaS for mission-critical applications. If a company can’t afford any downtime for a particular application, they likely won’t be willing to move it to the cloud.

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