Narrow-Moat Pegasystems Helps Streamline Customers' Business Processes

We believe Pegasystems is well established in the business process management, or BPM, software niche and further benefits from related customer engagement applications. We expect the company to remain a leading provider in the coming years as it moves customers to its new Pega Infinity platform, which unifies customer engagement with automation. We think the model transition was complicated in the early going, but it is moving to the scaling phase where Pegasystems’ financials should begin to improve going forward. High retention and long customer relationships are testament to the company’s switching-cost-driven narrow moat.