VOL. XCIV, NO. 247
★ WIDE MOAT STOCKS & COMPETITIVE ADVANTAGES ★
PRICE: 0 CENTS
Sunday, December 28, 2025
Manhattan Associates, Inc.
MANH · The Nasdaq Stock Market LLC
Weighted average of segment moat scores, combining moat strength, durability, confidence, market structure, pricing power, and market share.
Request update
Spot something outdated? Send a quick note and source so we can refresh this profile.
Overview
Manhattan Associates is a supply chain and omnichannel commerce software vendor with a growing cloud subscription base (Manhattan Active) and a large professional services business that implements and expands deployments. The core moat is a mix of suite unification (reducing integration complexity), workflow/data lock-in driven by deep configurability and extensions, and multi-year subscription contracts that support recurring revenue. Legacy maintenance remains a sticky, high-renewal stream but is structurally pressured as customers convert to cloud. Competition is intense (ERP vendors and other WMS/TMS/OMS platforms), and services revenue is more cyclical and budget-sensitive than subscriptions.
Primary segment
Professional services (implementation, consulting, training)
Market structure
Competitive
Market share
—
HHI: —
Coverage
4 segments · 7 tags
Updated 2025-12-28
Segments
Cloud subscriptions (Manhattan Active SaaS)
Enterprise cloud supply chain execution & omnichannel commerce software (WMS/TMS/OMS/POS)
Revenue
32.4%
Structure
Oligopoly
Pricing
moderate
Share
—
Peers
Professional services (implementation, consulting, training)
Supply chain & omnichannel software implementation and consulting services
Revenue
50.4%
Structure
Competitive
Pricing
weak
Share
—
Peers
Maintenance and support (legacy perpetual licenses)
Vendor maintenance & support for Manhattan perpetual-license (on-prem) software
Revenue
13.3%
Structure
Monopoly
Pricing
moderate
Share
—
Peers
—
Perpetual licenses and hardware
On-prem supply chain execution software licenses and related hardware resale
Revenue
4%
Structure
Competitive
Pricing
weak
Share
—
Peers
Moat Claims
Cloud subscriptions (Manhattan Active SaaS)
Enterprise cloud supply chain execution & omnichannel commerce software (WMS/TMS/OMS/POS)
Revenue share reflects FY2024 cloud subscription revenue ($337.2M; ~32% of total revenue) as reported in the FY2024 10-K.
Suite Bundling
Demand
Suite Bundling
Strength: 4/5 · Durability: durable · Confidence: 4/5 · 2 evidence
Unified suite across supply chain + omnichannel reduces integration burden, improves cross-sell, and raises switching friction versus stitching point solutions.
Erosion risks
- Best-of-breed point solutions + iPaaS reduce suite advantage
- ERP vendors deepen native WMS/TMS/OMS functionality
- Customers pursue modular procurement and unbundling
Leading indicators
- Multi-module attach rate per customer
- Net new cloud subscription bookings / RPO trend
- Win/loss vs SAP/Oracle in WMS/TMS/OMS deals
Counterarguments
- Enterprises can integrate point solutions effectively with modern middleware
- Large customers may standardize on ERP-adjacent suites for simplification
Data Workflow Lockin
Demand
Data Workflow Lockin
Strength: 4/5 · Durability: durable · Confidence: 4/5 · 2 evidence
Deep configuration + extensibility (data model/UI/logic changes) and integrations embed Manhattan into mission-critical warehouse/order/transport workflows, making replacement risky and expensive.
Erosion risks
- Standardized APIs and composable architectures lower switching costs
- Customers minimize customization to preserve portability
- Competitive parity in core WMS/TMS/OMS features
Leading indicators
- Customer expansion of additional modules and sites
- Churn / logo retention for cloud subscriptions
- Average contract scope growth over time
Counterarguments
- Open integration and microservices can reduce lock-in vs monolithic legacy systems
- Some buyers may prioritize portability and avoid deep vendor-specific extensions
Long Term Contracts
Demand
Long Term Contracts
Strength: 4/5 · Durability: medium · Confidence: 4/5 · 2 evidence
Direct, multi-year SaaS subscriptions (often 5+ years) create revenue visibility and embedded customer relationships, supporting persistence through renewals/expansions.
Erosion risks
- Customers push for shorter terms or stronger renewal concessions
- Competitive displacement at renewal due to feature/price parity
- Macro-driven deferrals in new site/module rollouts
Leading indicators
- Remaining performance obligation (RPO) trend
- Renewal rates and net revenue retention
- Discounting intensity in renewal cohorts
Counterarguments
- Multi-year terms do not guarantee renewal if ROI is questioned
- High competition can force pricing concessions at rebid
Reputation Reviews
Demand
Reputation Reviews
Strength: 3/5 · Durability: medium · Confidence: 3/5 · 2 evidence
Reputation as a leading WMS vendor can influence enterprise shortlists and procurement confidence for mission-critical deployments.
Erosion risks
- Category reputation shifts with product execution and service quality
- New entrants with superior UX/AI features change buyer perception
Leading indicators
- Independent analyst placements and customer review trends
- Referenceability and NPS / CSAT disclosures (if provided)
Counterarguments
- Procurement teams may prioritize TCO and integration fit over analyst branding
- Large SIs can neutralize vendor differentiation through standardized playbooks
Professional services (implementation, consulting, training)
Supply chain & omnichannel software implementation and consulting services
Revenue share reflects FY2024 services revenue ($525.5M; ~51% of total revenue) as reported in the FY2024 10-K.
Procurement Inertia
Demand
Procurement Inertia
Strength: 3/5 · Durability: medium · Confidence: 3/5 · 1 evidence
Post go-live, customers often keep buying services for additional locations, features, and products, creating repeat engagements and lowering service-provider switching.
Erosion risks
- More delivery shifts to global system integrators
- Customers internalize implementation capabilities
- Budget constraints delay expansions
Leading indicators
- Services utilization rate and backlog
- Partner-delivered vs vendor-delivered services mix
Counterarguments
- Implementation services are largely commoditized and bid competitively
- Large SIs can displace vendor services on scale and price
Maintenance and support (legacy perpetual licenses)
Vendor maintenance & support for Manhattan perpetual-license (on-prem) software
Revenue share reflects FY2024 maintenance revenue ($138.3M; ~13% of total revenue) as reported in the FY2024 10-K.
Installed Base Consumables
Demand
Installed Base Consumables
Strength: 4/5 · Durability: medium · Confidence: 4/5 · 2 evidence
Maintenance renewals on the installed base are recurring and typically paid in advance; customers often renew or convert to cloud subscriptions.
Erosion risks
- Legacy maintenance declines as customers migrate to cloud
- Customers reduce support scope or self-support
- Competitive cloud offerings accelerate replacement cycles
Leading indicators
- Maintenance revenue trend and churn
- Rate of maintenance-to-cloud conversions
Counterarguments
- This is a melting-ice-cube stream as the market shifts away from perpetual licenses
Perpetual licenses and hardware
On-prem supply chain execution software licenses and related hardware resale
Revenue share aggregates FY2024 software license ($15.1M) and hardware ($26.2M) revenue as reported in the FY2024 10-K.
Switching Costs General
Demand
Switching Costs General
Strength: 2/5 · Durability: fragile · Confidence: 3/5 · 2 evidence
Existing on-prem deployments can be sticky due to operational disruption risk, but new perpetual license demand is shrinking with customer preference for cloud subscriptions.
Erosion risks
- Ongoing SaaS migration reduces perpetual license relevance
- Alternative vendors win remaining on-prem deals on price
- Hardware resale remains low-margin and volatile
Leading indicators
- Perpetual license bookings trend
- Hardware revenue volatility and attach rate
Counterarguments
- Customers can choose cloud or competitor platforms rather than remain on legacy on-prem systems
Evidence
"Solution Unification ... engineered to provide cross-application benefit ... reduces complexity."
Supports suite/unification positioning as a buyer value prop.
"brings together Order Management ... POS and Customer Engagement tools into a single application"
Direct statement of multi-module unification on a shared platform.
"allows our customers to change the underlying data model ... user interface ... core business logic"
Extensibility implies deep tailoring that increases workflow/data lock-in over time.
"solutions are designed to interoperate ... with a customer's existing legacy systems"
Interoperability + integrations are a pathway to high operational switching costs.
"sold directly in multi-year cloud subscription arrangements ... five years or more"
Primary-source statement of typical subscription duration.
Showing 5 of 13 sources.
Risks & Indicators
Erosion risks
- Best-of-breed point solutions + iPaaS reduce suite advantage
- ERP vendors deepen native WMS/TMS/OMS functionality
- Customers pursue modular procurement and unbundling
- Standardized APIs and composable architectures lower switching costs
- Customers minimize customization to preserve portability
- Competitive parity in core WMS/TMS/OMS features
Leading indicators
- Multi-module attach rate per customer
- Net new cloud subscription bookings / RPO trend
- Win/loss vs SAP/Oracle in WMS/TMS/OMS deals
- Customer expansion of additional modules and sites
- Churn / logo retention for cloud subscriptions
- Average contract scope growth over time
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.