Research Report

Pivoting from Horizontal to Vertical Selling

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There is increasing evidence that technology companies maintaining a solely horizontal go-to-market posture will run the risk of margin reduction from commoditization and disaggregation caused by market disruption.

Making the move toward a more vertical posture in your go-to-market can start with relatively simple and subtle changes. This paper outlines a set of recommendations on the steps that companies can take as they start to make this pivot.
 
Recent TSIA research has shown that companies that adopt a more vertical posture in the way that they take their products and services to market achieve a higher rate of annual recurring revenue (ARR) growth from subscription-based offers. In addition, we are starting to see a growing body of data to suggest that being more vertical in your GTM will result in higher profitability.

If you are sitting on the fence trying to figure out whether your company should explore the benefits of becoming more vertical in the way you sell, this paper will provide you with clear evidence that it is not a matter of if, but how urgently, you should start taking the first steps.

Authored By:

Martin Dove

Vice President, Subscriptions Sales Research, TSIA

Publish Date: February 13, 2019

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Peg Rodarmel, SVP, Subscription Services, Infor

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