As no-code/low-code platforms become more widely adopted, vertical SaaS solutions face pricing and relevance pressure. A leading VC has predicted significant headwinds for the category in 2024.
Vertical SaaS under pressure
Vertical SaaS solutions, which have long dominated the software-as-a-service (SaaS) industry, are facing challenges with the emergence of Enterprise Application Platforms (EAPs).
“Vertical SaaS companies are going to get smacked this year”
These new solutions empower hyper-productive internal engineers to quickly build custom applications, eliminating the need for specialized SaaS solutions. This shift not only provides cost savings but also enables greater innovation and flexibility in corporate IT landscapes.
Hyper-productive internal developers
The era of enterprise low-code and no-code solutions has arrived, revolutionizing the way businesses develop and deploy software.
Gartner has predicted that 75% of large enterprises will be using at least four no-code/low-code dev tools in 2024.
These platforms not only disrupt the traditional vertical SaaS model but also change the dynamic for how business consider buying enterprise suites going forward. Internal software developers are the driving force behind the disruption of vertical SaaS solutions - rather than citizen developers, as they can typically reverse engineer the complexity that SaaS solution provide and integrate them more seamlessly into the enterprise application stacks.
By working closely with business analysts and stakeholders, they can identify the key functionalities and features required in an application. They then utilize their technical expertise to design and build these applications using enterprise low-code and no-code platforms.
Rise of Enterprise Application Platforms (EAPs) & composability
Enterprise Application Platforms (EAPs) are the next evolution in enterprise software development. These frameworks provide a comprehensive suite of tools and services that enable businesses to build, deploy, and manage their applications at scale.
Imagine your ERP system was a no-code platform, with simple hassle free upgrades.
The key advantage of EAPs is their ability to enable composability - ability to assemble applications from modular components, allowing businesses to create custom solutions by combining pre-built functionalities to create applications that perfectly align with their specific needs and look and feel like the existing ERP system - lowering the learning curve and integration complexity.
Composability is the key to the future of enterprise application suites. With the rise of EAPs and the concept of assembling applications from modular components, businesses can create comprehensive suites that perfectly align with their needs.
Nextworld® leading the way
Nextworld ® is a leading Enterprise Application Platform that promotes businesses’ digital transformation goals, VMG Labs is an implementation partner, we would welcome the opportunity to demonstrate the leading edge capabilities and show you a demonstration of how the Nextbot platform operates.