What is vertical market?

Vertical market is the deployment method developers choose when they develop a product they intend to sell en mass. Software applications deployed as vertical market applications usually address the information needs of specific industry groups (accounting, manufacturing, retail, insurance, software development, etc.). This can be contrasted with horizontal market software (word processors and spreadsheet programs) usable in a cross-section of industries.

Most long-time FoxPro developers remember the vertical market accounting package SBT. Many of us are familiar with vertically deployed development tools such as West Wind Web Connection, Visual FoxExpress, Stonefield Database Toolkit, INTL, the Mere Mortals frameworks, etc. We talked with some of the industry insiders about why they decided to deploy their software vertically. Some said they started developing the application without any intentions of it becoming a vertical market application, it happened by accident , which is often the case. The developer was working with a client on a custom application and saw or was presented an opportunity to market the application to a wider audience. In some cases the developer created a tool for themselves or their team and the word began to spread about it being such a great time saver or productivity tool it evolved into a vertical market tool. Another reason is applications sold as shareware might not be considered a serious development tool.

At first glance creating vertical market applications may sound easy, especially if you are working with a client and they or you can see potential to sell it to their industry friends . Before you think you have the next ‚“big thing, ‚½ let ‚ s take a moment to discuss what it takes to deploy an application to a vertical market. First and foremost, have you done your marketing research? Is there a real need for an application or tool like the one you want to take to the market? If you answer yes to both questions, you may continue reading otherwise go back and get started on that marketing research.

So what does it take? At the very least it takes a lot of time to design a stable application or tool. Do you have the extra time? Can you afford to take the time away from paying customers? It ‚ s great if you have a client paying you for a custom application with the potential to sell en mass. It ‚ s a good start, but ‚ you have to see the bigger picture for all potential purchasers of this application. Do you have a testing and support team in place? The new application must be thoroughly tested before deploying it to the masses. What kind of support structure do you have in mind? Don ‚ t forget about documentation. Customers want both printed and on-line versions of documentation.

As you can see it takes a lot of time, effort, and money to bring something to market. It ‚ s not as easy as someone saying ‚“I think I know a couple other insurance agents (stock brokers , video stores, salespersons, engineers , hospitals , etc.) who could use this application. ‚½ Ask some of the developers of the tools mentioned earlier and they will tell you they became their product. The support, enhancement requests , and criticism of their product ‚ it never ends.

Vertical market deployment is perhaps best used by developers who work in a single industry, have become experts, and see the need for a specific application or tool. It makes it easier to support the same code base for everyone.