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Hi Paul
Welcome to The Cirrostratus Group February newsletter.
A good definition of Vertical AI, much of which is SaaS based, comes from SymphonyAI. "Vertical AI refers to AI applications that are tailor-made for specific industries and use cases. Unlike horizontal AI platforms, which are designed for a broad range of uses across different fields, vertical AI is customized to address specific challenges and optimize processes within a designated vertical sector."
Vertical AI is one of the more promising approaches to future SMB and Enterprise software applications. One estimate from Global Market Insights of the global market size and growth is that it was $10.2B in 2024 and will grow at a rate of 21.6% per year until 2034. About 60% of the total at this point is SaaS or cloud based. There are of course other estimates but all indicate a large and rapidly growing market.
I've included in this month's newsletter some information about vertical AI business models and some current examples.
Paul Ressler
The Cirrostratus Group
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