The software market is seeing consolidation as companies acquire new products and solutions to offer comprehensive product suites to their customers. This is particularly evident in the human capital management, enterprise resource planning, and marketing software spaces. Many of these consolidators have built vertical businesses on their platform, such as Salesforce in the financial services industry. Vertical SaaS companies, particularly in construction, education, government, healthcare, and real estate sectors, continue to see strong demand from customers and interest from investors and strategic partners. The nature of vertical SaaS customers tends to be very sticky with long project terms and a low appetite to change software providers.
