Cloud solutions have steadily gained traction with their services like storage, network, email and office productivity to the extent that almost 70% of the organizations are exploring or using the cloud service solutions. The cloud business which is expected to touch $118 billion this year is dominated by three main kinds of services: Software-as-a-service (Saas), Platform-as-a-service (Paas) and Infrastructure-as-a-service (Iaas). Big firms like the Amazon Web Services (AWS), Microsoft Azure, and Google have been the major players of the cloud market that has largely been horizontal in nature. A need for industry specific or vertical services especially in niche sectors like healthcare, manufacturing, insurance, finance, etc. is leading to smaller players making waves in the cloud market. Read more to find the advantages that vertical services bring to the market? http://suyati.com/niche-market-evolution-of-cloud-technology/

1. Niche markets and the evolution of the Cloud

2. The Evolution of Cloud
70% of the organizations are exploring or using the cloud service
solutions
The cloud business is expected to touch $118 billion this year
Cloud is dominated by three main kinds of services: Software-as-
a-service (Saas), Platform-as-a-service (Paas) and Infrastructure-
as-a-service (Iaas).

3. Moving from Horizontal to Vertical Cloud
Horizontal cloud architecture is a generic architecture which can
be commonly used all types of businesses.
Vertical cloud architecture is designed to meet specific
requirements of particular types of businesses.
A need for industry specific or vertical services especially in niche
sectors is leading to smaller players making waves in the cloud
market.

4. “The cloud is evolving to make space for smaller players
who can build, run and integrate their products and
services to meet industry specific requirements”.
Scott Swartz, Founder, MetraTech
What do Experts Say?

5. Advantages of Vertical Cloud
 More Value
 Lower CAS
 Larger Market Share
 Layers of Value
Additional Revenue

6. More Value
There is a growing need for value-added IaaS that can
cater to a specific domain of expertise since their area of
focus is drastically brought down and they are able to pack
in more value that is also industry specific
Lower CAS
With a specific targeted audience, your potential targets are
reduced significantly and you are able to reach your
customers faster bringing down your Customer Acquisition
Costs (CAS).

7. With a vertical level, the penetration is far greater and
depending upon the player and the industry, one can
achieve up to 40% of the market share within five years.
Larger Market Share
Additional Revenue
There is a huge potential to earn additional revenue
through newer models like referrals-as-a-service (Raas) by
identifying potential targets, referring products or services
to them and earning a commission when the potential gets
converted to sales.

8. Vertical cloud architecture helps a company to add
further value to its packages by layering it with
functional solutions.
Layers of Value
For example: Guidewire adds further value to its
package of underwriting, billing and claims, policy
management etc. by layering it with functional
solutions of business intelligence, data management,
and mobile solutions.

9. Risks associated with Vertical Cloud
Higher price of installation
Being swallowed by bigger fish
Security issues and risks of lock-in

10. The final verdict
No innovation is risk-free or without significant hurdles and
therefore the challenges posed by vertical cloud solution
comes as no surprise.
It’s a noteworthy turn in the journey of the cloud market as
businesses are beginning to discover the benefits of
customized services as opposed to the generic, all-
encompassing ones.

11. That’s not all, feel free to share this information
For any queries on Cloud Computing

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