Compare moats
Up to three covered companies, band by band. Every call is a curated editorial judgment, never a disclosed figure — and every band carries its cited basis.
| Digital Realty Trust | SAP | Credo Technology | |
|---|---|---|---|
| Moat rating | narrow The FY2025 10-K's own competitive record cuts both ways. Item 1 says a "high-quality, highly interconnected global portfolio such as ours could not be easily replicated today on a cost-competitive basis," yet Item 1A concedes that competitors have "significantly greater financial, marketing and other resources and more ready access to capital" and that as rivals keep developing space, "rental rates may be reduced or we may face delays in leasing." A durable advantage that its own filing says new supply can price against is bounded, not unassailable. | wide The 20-F describes a migration market made of SAP's own customers: RISE with SAP 'is targeted at our installed base customers and helps them on their journey from legacy ERP systems to SAP Business Suite' — an installed base so entrenched that moving WITHIN the vendor is a multi-year journey, with the Q2 2026 statement showing €22.9 billion of contractually committed cloud backlog, up 27%. | narrow The 10-K names Broadcom, Marvell and Astera Labs as principal competitors that compete on 'some, but not all' of Credo's solutions, and discloses that the top 10 customers were approximately 90% of fiscal 2026 revenue with two customers at 10% or more each. A defensible technical position sold into a handful of buyers with that much leverage is narrow, not wide. |
| Moat type | network effects Item 1 attributes the hard-to-replicate part of the portfolio to connectivity rather than to real estate: "the network density, interconnection infrastructure and connectivity-centric customers in certain of our data centers have led to the organic formation of densely connected data communities that are difficult for competitors to replicate." That community sits on over 232,000 cross connects in over 55 metros, so each network and cloud that lands makes the same building worth more to the next tenant. | switching costs ERP is the system of record for a company's core processes; the 20-F's own strategy language — SAP Business Suite as 'the destination for all our customers,' with AI-enabled migration tools easing the journey off SAP's own legacy systems — is a switching-cost moat described from the inside. | intangibles ip The filing states the products 'are based on our own optimized Serializer/Deserializer (SerDes) and Digital Signal Processor (DSP) technologies' and lists 'extent of IP protection and enforcement of rights' among the principal competitive factors in its market. |
| Leadership | co leader Item 1 claims the title of "the largest global provider of cloud- and carrier-neutral data center, colocation and interconnection solutions," but the Competition section names Equinix and NTT as operators of properties "similar to ours in some of the same metropolitan areas," plus Global Switch and regional operators abroad — a shared top tier on the company's own telling, not a solitary one. | clear leader Grounded in scale and position rather than an asserted share: the 20-F describes a market segment consisting of SAP's own legacy estates (RISE), and the Q2 statement shows Cloud ERP Suite revenue of €5.5 billion in a single quarter, up 25% — no competitor filing this site tracks describes an installed-base market of its own. | co leader The 10-K states 'We believe we are the only company in our industry offering a complete suite of high-performance connectivity solutions', while naming Broadcom, Marvell and Astera as principal competitors on parts of the portfolio — a co-leader's claim, attributed to the company, not an independently observed share. |
| Pricing power | strong FY2025 renewals signed re-priced upward in every bucket — +27.0% on greater-than-1 MW space ($146 to $186 per square foot), +4.6% on 0-1 MW ($268 to $280) and +43.0% on other ($49 to $71) — and MD&A expects average aggregate rental rates on 2026 renewals to be positive against the rates currently paid for the same space "on a GAAP basis and on a cash basis." On costs, the filing says utilities expense "is our largest expense category" and that "the vast majority of the expense is passed directly through to our customers," which it credits with significantly mitigating exposure to power-cost increases rather than removing it. The cap: Item 1A warns competitor development could still force rates down. | moderate Q2 2026: total revenue up 9% with non-IFRS operating profit up 7% — profit growing slightly behind revenue, and the 2026 profit outlook 'updated to reflect dilutive impact from Dremio and Prior Labs acquisitions' rather than raised. | moderate The n-1 node advantage the filing describes lets Credo price against competitors from a lower cost base, but the same filing discloses two customers at 10% or more of revenue and a top-10 concentration near 90%, which is buyer leverage working the other way. |
| Summary | Digital Realty rents space, power and connectivity rather than compute: at 2025 year-end its portfolio held 310 data centers and roughly 57.6 million rentable square feet across more than 55 metros in over 30 countries, about 84.7% leased, serving more than 5,000 customers. Two different businesses sit inside that footprint. The greater-than-1 MW wholesale side is a capital-and-power race — 769 MW of projects underway with 64% pre-leased, and land that "could accommodate over 3,500 megawatts of additional data center capacity" — where the 10-K names Equinix, NTT, Global Switch and "various private operators" as rivals and warns that added supply can push rents down. The colocation and interconnection side is the defended half: over 232,000 cross connects and the "densely connected data communities" Item 1 says competitors cannot easily replicate, reinforced by contracts the filing describes as generally running 5-10+ years on large deployments and by improvements "installed at our customers' expense." FY2025 leasing supports that read — renewals signed re-priced +27.0% on greater-than-1 MW space and +4.6% on 0-1 MW — while customer concentration is the offsetting exposure, with the largest customer at roughly 11.7% of annualized recurring revenue. | SAP monetizes the stickiest software estate in enterprise computing twice over: a declining on-premise support stream and a growing cloud one, with the 20-F's 'flywheel' — Business AI enhancing Cloud ERP, which feeds Business Data Cloud, which fuels the AI — as the argument that the transition compounds rather than cannibalizes. The caveat is regulatory, in the filing's own words: the European Commission opened formal proceedings over on-premise maintenance and support policies, with suggested remedies market-tested in 2025 and 'pending final EC approval in 2026' — the moat's support-pricing half is under review. | Credo's durable asset is its own SerDes and DSP silicon, which the 10-K says reaches 'similar performance to leading competitors' products but at a lower cost and more highly available legacy node (n-1 advantage)'. That cost-and-supply edge, plus a portfolio the company believes is the industry's only complete high-performance connectivity suite, is what holds a position against far larger rivals — and it is held with roughly 90% of revenue coming from ten customers. |
| Chain position | Landlord to the AI stack — sells the space, power and interconnection that cloud, network and enterprise tenants run compute in (Oracle, IBM, Meta Platforms, AT&T, Comcast and Lumen are among the customers named in Item 1), with roughly 2.9 GW of total in-place IT capacity. | Layer-10 application incumbent embedding AI (Joule, Business AI) into the enterprise system of record. | Upstream interconnect supplier: SerDes/DSP silicon and active cables sitting between accelerators, switches and optics inside AI data centers. |
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| Long-horizon vote | +0.17 at weight 0.20 · swarm neutral Editorial prior, not backtested. | +0.38 at weight 0.20 · swarm neutral Editorial prior, not backtested. | +0.13 at weight 0.20 · swarm neutral Editorial prior, not backtested. |