CRMSubstantive discussion · 3/5Save idea

Horizontal platforms outpace vertical software

The guest argued that enterprises are shifting software spend from vertical SaaS to horizontal platform tools to build custom AI workflows, creating a valuation arbitrage opportunity.

The argument

The speaker noted that their organization has dropped vertical software in favor of horizontal platforms that allow them to build bespoke applications. Because both categories currently trade at similar valuations, this shift presents a potential valuation arbitrage.

The thesis, stress-tested

✓ What validates it

✓Earnings reports from major horizontal SaaS players showing accelerated growth
✓Decline in contract values for pure-play vertical SaaS providers

▸ Risks discussed

▸Enterprises may struggle to build and maintain custom workflows internally
▸Horizontal tools may require higher upfront development costs

Hear it yourself

"everybody. Welcome back to the number one podcast in the world, the All In podcast, episode 273. It's a huge week. Sachs is out. So we got to get Marc Benioff, CEO of Salesforce. I'm the only one left here. You're the only one left. That's how I made it on."

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