Next Leap in Enterprise Cloud: Micro-Vertical SaaS

Vertical SaaS is in a new chapter. With industry-centered software already accounting for more than 30% of the enterprise cloud market and growing more than double that of horizontal platforms, the next wave - “Vertical SaaS 2.0” - is now centered on micro-verticalisation, AI-native architecture, and real-time. At the leading edge of this transition is Infor, which is building cloud applications not just for industries such as manufacturing or healthcare, but for sub-sectors like dairy producers or specialty chemical plants.

“We are moving now into the realm of the micro-vertical,” says Phil Lewis, SVP at Infor, “where systems are built with a purpose to serve the unique intricacies that sit within the sectors themselves.” Excerpts:

How do you see the enterprise SaaS landscape evolving in the next 3-5 years? Are we moving into a “Vertical SaaS 2.0” era?

Over the next few years, SaaS will revolutionise organisations. Solutions will become even more tailored and cloud applications will be purpose built for very specific business needs.

But these tailored applications will extend far beyond what we consider ‘traditional’ verticalisation. We are moving into the realms of the micro-vertical—where systems are purpose built to compliment the unique intricacies that sit within the sectors themselves.

AI adoption should go beyond surface-level applications and become deeply embedded in core operations to drive efficiency, innovation, and sustainable growth. Organisations must move beyond basic.

Take Food and Beverage for example. Traditional SaaS solutions may serve the wider industry, but there are hundreds if not thousands of micro-verticals within this sector, like bakeries, poultry or dairy producers. With the proliferation and deployment of new technologies such as AI and automation, purpose-built applications for each of these micro-sectors are now a reality. And at Infor that is exactly what we are focusing on—leading the way when it comes to deploying these systems.

What’s driving the demand for industry-specific solutions vs traditional horizontal SaaS platforms?

There has always been a demand for industry-specific solutions, but until now organisations have had to compromise because the technology was just not available. That’s all changed. As a business, we’ve heavily invested in R&D to stay at the forefront of innovation. And the arrival of AI, Machine Learning and automation have unlocked new ways for us to move further into sector specificity and become industry complete.

We are moving into the realms of the micro-vertical — where systems are purpose-built to complement the unique intricacies that sit within the sectors themselves.

We’ve listened to our customers when they say that what they need is a suite of systems and tailored solutions that are unique to their business. Which ultimately helps them to streamline their operations; whether that be managing orders, processing invoices, optimising the supply chain or numerous other requirements.

Infor has long positioned itself as an industry-first SaaS provider. How are you doubling down on this in the age of GenAI and real-time data?

New technologies such as GenAI and automation, and the real-time data they create, are game changers. And most businesses know it, in fact, 78% of organisations globally expecting to increase investments in technology by 20% in the coming years.

As mentioned, we’ve invested heavily in R&D to create systems that simplify process innovation and help customers stay agile, adaptable, and innovative. Providing GenAI and process automation tools across our Velocity Suite to diagnose process insights, automate manual tasks and optimise their operations to deliver true value.

But educating our customers has also been key too. AI adoption should go beyond surface-level applications and become deeply embedded in core operations to drive efficiency, innovation, and sustainable growth. Organisations must move beyond basic AI adoption and achieve full-scale transformation, seeing the technology as more than just another tool layered onto existing processes.

Instead, it should be treated as a strategic driver – one that fundamentally redefines how production, operations, and decision making are approached.

How do Infor’s offerings integrate AI/ML today? And what’s coming next?

AI and ML capabilities are already baked into our enterprise software, to help companies navigate increasingly complex challenges. We have seen this a lot in the manufacturing and distribution industries, especially considering recent global supply chain disruptions. It can often be hard to know where to start, when it comes to implementing new AI or ML technologies and then navigating its promises against what it can actually deliver.

That’s where we come in. As part of our new Velocity product suite, customers can diagnose process inefficiencies and potential bottlenecks by analysing operation data. This then lays the groundwork for automation which leverages GenAI and Robotic Process Automation (RPA) to eliminate manual tasks, streamline workflows and provide real-time insights and recommendations.

Agentic AI has the potential to change the way businesses work. These advanced systems can take on full tasks with little need for human help – saving time and effort. With ready-to-use examples, Agentic AI can be deployed quickly to complete goals, adjust new situations and come back with helpful suggestions. In the future, these agents could even design new tools or systems based on the task they’re given, helping businesses work faster, smarter and more efficiently.

SaaS won’t feel like software at all. It will radically transform how users interact with business applications — where the best user interface is no interface at all.

Could you share a case where a customer has achieved measurable outcomes using Infor’s cloud SaaS?

We’ve worked closely with our partners at GMM Pfaudler, a leading supplier of corrosion-protected glass lined equipment.

The organisation was struggling with a massive item data quality project. They had 800,000 items to review and update manually, which could take about 5 minutes per item. At that pace, the project would take over seven years to finish. In the meantime, bad data was causing duplicate records, hard-to-find items, high inventory costs, too many suppliers to manage and unhappy employees.

Our GenAI tool made a big difference. It boosted productivity, improved accuracy and made the whole process more consistent. GenAI automatically groups similar items and creates multi-language descriptions. Thanks to this, the project can now be completed in just 6 months, instead of over 7 years.

What are CIOs and operations heads asking for today that they weren’t 2 years ago?

CIOs have shown an interest in investing in new technologies, but the arrival of AI and automation has accelerated this drive. For business across every industry to move beyond basic AI adoption and achieve full-scale transformation, AI must be seen as more than just another tool layered onto existing processes.

Indeed, one of the key findings from our global How Possible Happens report is that 80% of global organisations agree that success will depend on the use and adoptability of new technologies. In practice, this means integrating AI into strategic preparation from the outset, rather than rebuilding it to legacy systems.

How is Infor leveraging feedback loops from customers to inform product roadmaps?

We stay close to our customers and sit down with them—often quarterly—to discuss product roadmaps and hear what’s evolving in their worlds. And because we prioritise being industry-complete, and delve deeper into micro-verticals, we create solutions that actively solve the right problems.

We also co-develop solutions with our customers based on real-world use cases—looking at where technologies like automation, optimisation, and GenAI, can have the biggest impact. This way, we make sure our roadmap reflects what businesses need, rather than what we think they might want. These solutions aren’t based on guesswork, they’re shaped by real diagnosed challenges, so they actually deliver results.

What would the ideal SaaS deployment look like for an enterprise in 2028? And how is Infor helping them get there today?

SaaS won’t feel like software at all. It will be an ideal deployment for enterprises that will radically transform how users interact with business applications. Forget relying on traditional forms and keyboards, enterprises will experience seamless, predictive interactions, where ‘the best user interface is no interface at all’.

Users will potentially be able to communicate with their ERP systems through voice commands, AI agents, or even images, allowing them to perform complex tasks, generate reports, and access data effortlessly.

At Infor we’re already helping businesses prepare for that. By embedding advanced, agentic AI and connected technologies, we can focus on delivering dynamic, user-experience-driven applications that eliminate outdated interfaces and unlock hyper-productivity. Ultimately empowering companies to reimagine work processes and adapt to the evolving future of work.

aanchalg@cybermedia.co.in