Progress Software Corporation
Moat Score — Progress Software Corporation
Total Moat Score
16 / 30
| Moat Factor | Score | Analysis |
|---|---|---|
| Intangible Assets Patents, trademarks, brand strength, or regulatory licenses that protect a company's products or services from being freely copied by competitors. | 4 / 5 | Owns a portfolio of proprietary enterprise software products (OpenEdge, Sitefinity, MarkLogic, ShareFile) built or acquired over decades, embedded deeply in customer environments. |
| Cost Advantage A durable ability to produce goods or services more cheaply than competitors — through scale, unique access to cheap inputs, location, or process — that lets a company undercut rivals or out-earn them at the same price. | 2 / 5 | Some scale benefit from running many mature software franchises on a shared corporate cost base, but no structural low-cost advantage versus competitors in any single product category. |
| Pricing Power The ability to raise prices without losing meaningful business, because the product or service is differentiated, mission-critical, or has few good substitutes. | 3 / 5 | Sticky maintenance/SaaS renewal base (100% net retention cited) gives real pricing power on existing customers, though new-logo competition is more price-sensitive. |
| Network Effect The product or service becomes more valuable to every user as more people or organizations use it, making an established leader harder to displace. | 1 / 5 | Minor ecosystem effects from ISV/partner integrations around platforms like OpenEdge, but not a primary value driver. |
| Switching Costs The money, time, or operational disruption a customer would face switching to a competitor, which locks in existing customers and supports renewals. | 4 / 5 | Infrastructure software like OpenEdge and data platforms is deeply embedded in customer IT stacks; migrating off is costly and risky, which is the core of the business's retention economics. |
| Efficient Scale A market that can only profitably support a small number of players, so incumbents face limited threat from new entrants even without other defenses. | 2 / 5 | Operates in fragmented, mature enterprise-infrastructure niches with multiple viable competitors; no single market is too small to support multiple players. |