Vertical Software: The New Mote: Distribution, Governed Data and Workflow Entrenchment; ADSK, GWRE, and QTWO Among Top Picks

研报英文原文证据摘录

Vertical Software: The New Mote: Distribution, Governed Data and Workflow Entrenchment; ADSK, GWRE, and QTWO Among Top Picks

J P M O R G A N North America Equity Research

17 July 2026

Vertical Software

The New Mote: Distribution, Governed Data and

Workflow Entrenchment; ADSK, GWRE, and QTWO

Among Top Picks

Generative AI has reframed the core question in vertical software: not whether Vertical SaaS & HealthTech

ACsoftware can be built, but what actually makes it defensible. For years, the bull case Alexei Gogolev

was specialization: niche workflows, industry-specific data, and switching costs (1-212) 622-9391

that horizontal players struggled to replicate. AI complicates that narrative by alexei.gogolev@jpmorgan.com

compressing the marginal cost of building applications, pushing defensibility Ella Smith AC

beyond the application layer and into deeper control points. Our expert channel (1-212) 622-2451

checks point to a clear conclusion: the moat is migrating from code to harder-to- ella.smith@jpmchase.com

copy assets, such as distribution, governed proprietary data, and entrenched, multi- Destiny Jackson

stakeholder workflows. We remain constructive on Vertical Software as a (1-212) 622-4360

destiny.jackson@jpmorgan.com

fundamental long and believe our coverage is more defensive—not less—in an AI

Isabella A Camajworld.

(1-212) 834-2379

• Software’s crown jewel used to be the code—now it’s everything that bella.camaj@jpmorgan.comJ.P. Morgan Securities LLC

surrounds it. One engineering leader at a cloud data-platform company

describes the product lifecycle as ideation, execution, and distribution, and

argues that AI has cut execution costs by ~80–90% while leaving distribution

largely untouched, making go-to-market advantage a primary differentiator.