u/Beneficial-Chair-333 ·
Reddit — r/ValueInvesting
· June 30, 2026 at 05:03
· ⬆ 15 pts
· 💬 28 comments
| View on Reddit ↗
AI Summary
Summary
Author compares moats of ServiceNow (NOW), SAP, and Veeva Systems (VEEV), arguing that SAP and VEEV have stronger competitive advantages due to higher regulatory/compliance risks and replacement costs.
Thesis: Ledger/ERP systems (SAP, VEEV) have "bigger moats" than ServiceNow, which handles internal operations and is less critical for external legal compliance.
Quality assessment: Speculative opinion with logical reasoning but no data or financial metrics; more a discussion starter than well-researched DD.
Score15
Comments28
Upvote %70%
▶ Full Post Text
I don't know why people hyping Servicenow so much over ledger systems like SAP and Veev. Is it orchestrated or just a following ship?
I know NOW handles and tracks whole internal operations of the company over digital blueprint but SAP has valuable and vast data even small error in organizing and executing it can stall logistics of shipment or can face the bigger lawsuite over missing deadlines or can send officials in jail due to non-compliance of law. Also, replacement cost of SAP is high.
Similarly Veev has extra layer over ordinary saas, their client have to revalidate whole system by authorities like FDA if they chose to replace by other over VEEV and which is very costly.
Ledger systems have much more external critical lawful and compliance complications and high replacement cost than internal systems NOW handles. I think these ledger systems have bigger moat than NOW.
Or Am I missing something? I would like to see your views?
(Why am I getting donvoted? It is discussion haha)
VEEV’s FDA revalidation requirement for customers creates an extra switching cost layer beyond typical SaaS. Regulatory lock-in gives VEEV a near-insurmountable moat, potentially mispriced vs. NOW. Author contrasts VEEV’s external compliance burden with NOW’s internal operations, implying VEEV’s moat is stronger. FDA policy changes, new competition, or customer consolidation; VEEV already trades at high multiples.
SAP's vast data, high replacement cost, and critical role in logistics/compliance create a durable moat. If SAP's moat is undervalued relative to market hype for NOW, it may offer a relative value opportunity. Author argues SAP's external legal/compliance risks make it stickier than NOW, suggesting long-term competitive advantage. SAP faces legacy tech disruption, cloud transition challenges, or macroeconomic slowdown affecting enterprise spending.
This Reddit post, published June 30, 2026,
features u/Beneficial-Chair-333
discussing VEEV, SAP.
2 trade ideas extracted by AI with direction and confidence scoring.