According to a Gartner, vertical-specific software is by far the largest category of the software market posting $100B in sales in 2013 and accounting for 28% of the market. The second biggest category, operating systems, holds only 8% of the market, ahead of database management systems, ERP, middleware and security.
$100B is a surprisingly large number given that customers in many vertical markets are notorious laggards when it comes to adopting technology. Most still rely on paper-based, manual processes and the majority of the $100B software spend is on legacy technology.
Going forward, we believe the total opportunity in vertical markets is far larger than Gartner’s $100B. Replacing manual processes is perhaps an order of magnitude bigger… 10 x $100B is literally a trillion-dollar opportunity!