Vertical & horizontals industry(2)
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Vertical & horizontals industry(2)






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    Vertical & horizontals industry(2) Vertical & horizontals industry(2) Presentation Transcript

      • In Business of Software Vertical versus Horizontal
      • Vertical versus Horizontal:
      • vertical merger means a merger with says a supplier.
      • Horizontal merger means one with a competior.
    • What are they? I think Vertical refers to a Chain of customer/Suppliers.
      • Vertical:
      • Vertical can also mean a particular industry or sector
      • ie,”oil & Gas” or “Auto manufacturing”.
      • Horizontal:
      • Horizontal Would be a Categorization that cuts across
      • Vertical,ie.”Windows System Administrators” or
      • “ Accounting Managers”.
      • Going Vertical means targetting a group of customers who
      • are all in the same industry.
      • Examples:
      • A vertically targetted ISV might go after financial companies or Manufacturing Companies.Each of those represents vertical market.
      • Targetting a Horizontal market segments means making your
      • products or Services available to a variety of different companies that do totally different things.
      • Examples:
      • Windows XP has broad Horizontal appeal because it’s in use by all kinds of businesses,consumers & even students.
      • Totally different types of users.
      • When I sold Sun Hardware,
      • Vertical Scaling meant that you could add more CPUs,
      • RAM,ect one machine.
      • Horizontal Scaling meant adding more Smaller machines.
      • The web tier of a 3-tier solution should scale
      • Horizontally (more load=more servers).
      • The DB powering the backend should be on hardware that scale Vertically(more load=more RAM,CPUs,ect..).
      • A definition of a vertical market is one that deals with a particular industry meeting its needs,
      • A horizontal market is more general,it appeals to,or deals
      • with a much wider range of business,uses,ect…
      • ‘ A market which meets a given need of a wide variety of industries , rather than a specific one , for
      • eg:word processing software’.
      • A same site classes a vertical market as:
      • ‘ A market which meets the needs of a particular industry,
      • for eg:a piece of equipment used only by semiconductor manfactures’.
    • Empirical analysis of vertical & horizontal Intra Industry Trade.
    • Horizontal & vertical milling Machines manufacture