VOL. XCIV, NO. 247
★ WIDE MOAT STOCKS & COMPETITIVE ADVANTAGES ★
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Thursday, January 8, 2026
CDW Corporation
CDW · NASDAQ
Weighted average of segment moat scores, combining moat strength, durability, confidence, market structure, pricing power, and market share.
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Overview
CDW Corporation is an IT solutions provider/value-added reseller serving U.S. corporate, small business, and public-sector customers, with additional operations in the UK and Canada. Its moat is primarily relationship- and execution-based: a large customer-facing sales and engineering organization, broad multi-vendor portfolio breadth, and vendor program access via top-tier certifications. Public-sector sales are meaningfully contract-driven (with procurement/regulatory constraints), while the overall market remains highly competitive, limiting structural pricing power.
Primary segment
Corporate
Market structure
Competitive
Market share
—
HHI: —
Coverage
4 segments · 6 tags
Updated 2026-01-06
Segments
Corporate
IT solutions provider / value-added reseller (VAR) + services for U.S. private-sector businesses (250+ employees)
Revenue
42.1%
Structure
Competitive
Pricing
weak
Share
—
Peers
Small Business
IT solutions provider / VAR + services for U.S. small businesses (<=250 employees)
Revenue
7.3%
Structure
Competitive
Pricing
weak
Share
—
Peers
Public
IT solutions provider / VAR + services for U.S. public sector (government, education, healthcare institutions)
Revenue
38.8%
Structure
Competitive
Pricing
weak
Share
—
Peers
Other (UK & Canada)
IT solutions provider / VAR + services in the United Kingdom and Canada
Revenue
11.8%
Structure
Competitive
Pricing
weak
Share
—
Peers
Moat Claims
Corporate
IT solutions provider / value-added reseller (VAR) + services for U.S. private-sector businesses (250+ employees)
Revenue_share and operating_profit_share derived from CDW FY2024 Form 10-K segment tables (Net sales and Operating income by segment). Source: https://www.sec.gov/Archives/edgar/data/1402057/000140205725000018/cdw-20241231.htm
Service Field Network
Supply
Service Field Network
Strength
Durability
Confidence
Evidence
Large customer-facing sales + specialist/engineering organization supports solution design, integration and ongoing service delivery at scale.
Erosion risks
- Talent attrition or wage inflation for engineers/specialists
- Competitors scaling services capacity or offshore delivery
- Automation/AI reducing need for human-led integration
Leading indicators
- Customer-facing coworker count and certification levels
- Gross margin on services and attached services mix
- Customer satisfaction / NPS trends
Counterarguments
- Other large solution providers can hire similar talent
- Some workloads shift to vendor-managed or cloud-native services, reducing intermediary value
Scope Economies
Supply
Scope Economies
Strength
Durability
Confidence
Evidence
Broad multi-vendor catalog lets enterprise buyers consolidate sourcing across hardware, software, cloud and services with one partner.
Erosion risks
- Vendors selling direct or via cloud marketplaces
- Vendor consolidation reducing differentiation among resellers
- Customers standardizing on fewer platforms, shrinking breadth value
Leading indicators
- Vendor program tiers and number of strategic vendor relationships
- Share of wallet per customer and attach rate across solution areas
- Mix shift toward cloud/subscription vs transactional hardware
Counterarguments
- Competing VARs/distributors also offer broad catalogs
- Large enterprises can dual-source with little incremental switching cost
Preferential Input Access
Supply
Preferential Input Access
Strength
Durability
Confidence
Evidence
Top-tier vendor certifications can improve access to pricing, incentive programs, and early solution roadmaps versus smaller resellers.
Erosion risks
- Vendor incentive programs reduced or restructured
- Vendors prioritize direct sales motions for strategic accounts
- Certification advantages competed away via discounting
Leading indicators
- Vendor rebate/incentive contribution to gross profit
- Retention of highest-level certifications with key vendors
- Gross margin stability vs peers
Counterarguments
- Vendor programs are not exclusive; benefits may be passed through to customers
- Large customers can negotiate directly with vendors, reducing reseller leverage
Small Business
IT solutions provider / VAR + services for U.S. small businesses (<=250 employees)
Revenue_share and operating_profit_share derived from CDW FY2024 Form 10-K segment tables. Source: https://www.sec.gov/Archives/edgar/data/1402057/000140205725000018/cdw-20241231.htm
Procurement Inertia
Demand
Procurement Inertia
Strength
Durability
Confidence
Evidence
Digital ordering/tracking/reporting tools and ongoing account relationships can embed CDW into SMB purchasing workflows.
Erosion risks
- SMBs shifting to low-touch e-commerce/marketplaces
- Price transparency increases switching and multi-sourcing
- Managed service providers disintermediate hardware/software purchasing
Leading indicators
- Repeat-customer rate and order frequency
- E-commerce/digital order share
- Average gross margin per order
Counterarguments
- SMBs are often more price-sensitive and can switch quickly
- Cloud subscriptions can be purchased directly from vendors with minimal friction
Operational Excellence
Supply
Operational Excellence
Strength
Durability
Confidence
Evidence
Fulfillment capabilities (including drop-ship at scale) support fast delivery and broad availability without holding all inventory.
Erosion risks
- Supply chain disruptions or carrier cost inflation
- Competitors replicate drop-ship/outsourced logistics
- Vendor allocations constrain availability in shortages
Leading indicators
- On-time delivery / fill-rate metrics (if disclosed)
- Inventory turns and cash conversion cycle
- Gross margin impact from freight/delivery costs
Counterarguments
- Logistics advantages can be outsourced and are not exclusive
- For many SMB purchases, speed of delivery is commoditized by major distributors/marketplaces
Scope Economies
Supply
Scope Economies
Strength
Durability
Confidence
Evidence
Breadth across hardware/software/cloud/services reduces the need for SMB buyers to manage multiple vendors and invoices.
Erosion risks
- SMBs standardize on a small set of cloud platforms
- Vendor direct-sales and online channels reduce channel value
Leading indicators
- Attach rate of services to product transactions
- Cloud/subscription sales growth rate
Counterarguments
- Many competitors offer similar breadth; differentiation can be thin
- Consolidation benefits are less valuable for very small customers
Public
IT solutions provider / VAR + services for U.S. public sector (government, education, healthcare institutions)
Public segment includes Government, Education, and Healthcare channels in CDW reporting. Revenue_share and operating_profit_share derived from FY2024 Form 10-K segment tables. Source: https://www.sec.gov/Archives/edgar/data/1402057/000140205725000018/cdw-20241231.htm
Government Contracting Relationships
Legal
Government Contracting Relationships
Strength
Durability
Confidence
Evidence
Access to public-sector demand is meaningfully contract-driven; contract vehicles and GPO participation can be a gatekeeper to compete for spend.
Erosion risks
- Contract recompetes / loss of contract vehicles
- Regulatory/procurement changes increasing compliance cost
- Budget cuts or government shutdowns reducing demand
Leading indicators
- Large contract wins/renewals and recompete outcomes
- Public-sector net sales trend vs funding cycles
- Audit findings / False Claims Act or procurement investigations
Counterarguments
- Public-sector contracts are generally terminable and frequently recompeted; incumbency is limited
- Specialist public-sector competitors can win on niche compliance and contract positioning
Service Field Network
Supply
Service Field Network
Strength
Durability
Confidence
Evidence
End-market focused sales teams supported by specialists improve solution fit for regulated/mission-driven customers.
Erosion risks
- Difficulty retaining cleared/qualified personnel
- Increased competition from OEM direct public-sector teams
- Standardization on fewer platforms reduces solution differentiation
Leading indicators
- Public segment operating income margin trend
- Customer satisfaction and renewal/renewal pipeline
- Specialist headcount in security/cloud
Counterarguments
- Public buyers can switch among contract holders with limited friction
- Differentiation often comes down to price, availability, and compliance rather than unique capability
Other (UK & Canada)
IT solutions provider / VAR + services in the United Kingdom and Canada
"Other" includes CDW UK and CDW Canada in CDW reporting. Revenue_share and operating_profit_share derived from FY2024 Form 10-K segment tables. Source: https://www.sec.gov/Archives/edgar/data/1402057/000140205725000018/cdw-20241231.htm
Scope Economies
Supply
Scope Economies
Strength
Durability
Confidence
Evidence
Group-wide multi-vendor portfolio and solution areas can transfer across geographies, supporting go-to-market breadth in UK/Canada.
Erosion risks
- Local competitors with stronger country-specific relationships
- FX volatility and differing procurement regimes
- Vendor program changes region-by-region
Leading indicators
- Other segment net sales and operating income trend
- Share of services vs product in UK/Canada mix
Counterarguments
- Scale advantages are smaller outside the U.S. core
- Local incumbents can have deeper relationships and contract positioning
Service Field Network
Supply
Service Field Network
Strength
Durability
Confidence
Evidence
Specialists/engineers and delivery capabilities support higher-value services attach versus purely transactional reselling.
Erosion risks
- Talent retention challenges in competitive labor markets
- Outsourcing/offshoring by competitors compressing service differentiation
Leading indicators
- Services gross margin and attach rates in UK/Canada (if disclosed)
- Employee certification counts
Counterarguments
- Services delivery can be replicated by other integrators/MSPs
- Cloud-first adoption can reduce need for on-prem integration services
Evidence
Our solutions are delivered ... through approximately 10,900 customer-facing coworkers, including sellers, highly-skilled specialists and engineers.
Supports a service-field-network moat: large sales + specialist/engineering coverage used to deliver complex IT solutions.
We are ... unbiased, with a solutions portfolio including more than 100,000 products and services from more than 1,000 leading and emerging brands.
Supports scope economies from a broad multi-vendor portfolio (customers can source many categories/brands via one partner).
These certifications also provide us with access to favorable pricing, tools and resources, including vendor incentive programs.
Supports preferential input access via top-tier vendor certifications and associated pricing/program benefits.
We believe our websites and software tools ... make it easy for customers to transact business with us and ... strengthen our customer relationships.
Supports procurement inertia/switching friction via embedded ordering, tracking, reporting and asset-management workflows.
These arrangements represented approximately 54% of total North America Net sales in 2024.
Supports operational/logistics advantage (drop-ship + distribution network efficiency can improve availability and delivery speed).
Showing 5 of 8 sources.
Risks & Indicators
Erosion risks
- Talent attrition or wage inflation for engineers/specialists
- Competitors scaling services capacity or offshore delivery
- Automation/AI reducing need for human-led integration
- Vendors selling direct or via cloud marketplaces
- Vendor consolidation reducing differentiation among resellers
- Customers standardizing on fewer platforms, shrinking breadth value
Leading indicators
- Customer-facing coworker count and certification levels
- Gross margin on services and attached services mix
- Customer satisfaction / NPS trends
- Vendor program tiers and number of strategic vendor relationships
- Share of wallet per customer and attach rate across solution areas
- Mix shift toward cloud/subscription vs transactional hardware
Curation & Accuracy
This directory blends AI‑assisted discovery with human curation. Entries are reviewed, edited, and organized with the goal of expanding coverage and sharpening quality over time. Your feedback helps steer improvements (because no single human can capture everything all at once).
Details change. Pricing, features, and availability may be incomplete or out of date. Treat listings as a starting point and verify on the provider’s site before making decisions. If you spot an error or a gap, send a quick note and I’ll adjust.