Sep
16
2021
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Salesforce announces new MuleSoft RPA tool based on Servicetrace acquisition

When Salesforce announce0d it was buying German RPA vendor Servicetrace last month, it seemed that it might match up well with MuleSoft, the company the CRM giant bought in 2018 for $6.5 billion. MuleSoft, among other things, helps customers build APIs to legacy systems, while Servicetrace provides a way to add automation to legacy systems. Sure enough, the company announced today that it’s planning a new MuleSoft-Servicetrace tool called MuleSoft RPA.

The Servicetrace deal closed on September 2nd and the company isn’t wasting any time putting it to work wherever it makes sense across the organization — and the MuleSoft integration is a primary use case. John Kucera, SVP of product management at Salesforce where he leads product automation, says that MuleSoft has API management and integration tooling already, but RPA will add another dimension to those existing capabilities.

“We found that many of our customers also need to automate and integrate with disconnected systems, with PDFs, with spreadsheets, but also these legacy systems that don’t have events or API’s. And so we wanted to make sure that we can meet our customers where they are, and that we could have this end-to-end, solution to automate these capabilities,” Kucera told me.

The company will be packaging ServiceTrace as a part of MuleSoft, while blending it with other parts of the Salesforce family of integration tools, as well as other parts of the platform. The MuleSoft RPA tool will live under the Einstein Automate umbrella, but MuleSoft will also sell it as a standalone service, so customers can take advantage of it, even if they aren’t using other parts of the MuleSoft platform or even the broader Salesforce platform. Einstein is the name of Salesforce’s artificial intelligence capabilities. Although RPA isn’t really AI, it can become integrated into an AI-fueled workflow like this.

The MuleSoft acquisition always seemed to be about giving Salesforce, a fully cloud company at its core, a way to access on-prem, legacy enterprise systems, allowing customers to reach data wherever it lives. Adding RPA to the mix takes that a step further, enabling companies to build connections to these systems inside their more modern Einstein Automate workflow tooling to systems that previously wouldn’t have been accessible to the Einstein Automate system.

This is often the case for many large companies, which typically use a mix of newer and often very old systems. Giving them a way to link the two and bring automation across the company could prove quite useful if it truly works as described.

The company is announcing all of these capabilities at Dreamforce, its annual customer conference taking place next week. As with many announcements at the conference, this one is designed to let customers know what’s coming, rather than something that’s available now (or at least soon). MuleSoft RPA is not expected to be ready for general availability until some time in the first half of next year.

Aug
19
2021
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UiPath CEO Daniel Dines is coming to TC Sessions: SaaS to talk RPA and automation

UiPath came seemingly out of nowhere in the last several years, going public last year in a successful IPO during which it raised more than $527 million. It raised $2 billion in private money prior to that with its final private valuation coming in at an amazing $35 billion. UiPath CEO Daniel Dines will be joining us on a panel to discuss automation at TC Sessions: SaaS on October 27th.

The company has been able to capture all this investor attention doing something called robotic process automation (RPA), which provides a way to automate a series of highly mundane tasks. It has become quite popular, especially to help bring a level of automation to legacy systems that might not be able to handle more modern approaches to automation involving artificial intelligence and machine learning. In 2019 Gartner found that RPA was the fastest growing category in enterprise software.

In point of fact, UiPath didn’t actually come out of nowhere. It was founded in 2005 as a consulting company and transitioned to software over the years. The company took its first VC funding, a modest $1.5 million seed round, in 2015, according to Crunchbase data.

As RPA found its market, the startup began to take off, raising gobs of money, including a $568 million round in April 2019 and $750 million in its final private raise in February 2021.

Dines will be appearing on a panel discussing the role of automation in the enterprise. Certainly, the pandemic drove home the need for increased automation as masses of office workers moved to work from home, a trend that is likely to continue even after the pandemic slows.

As the RPA market leader, he is uniquely positioned to discuss how this software and other similar types will evolve in the coming years and how it could combine with related trends like no-code and process mapping. Dines will be joined on the panel by investor Laela Sturdy from CapitalG and ServiceNow’s Dave Wright, where they will discuss the state of the automation market, why it’s so hot and where the next opportunities could be.

In addition to our discussion with Dines, the conference will also include Databricks’ Ali Ghodsi, Salesforce’s Kathy Baxter and Puppet’s Abby Kearns, as well as investors Casey Aylward and Sarah Guo, among others. We hope you’ll join us. It’s going to be a stimulating day.

Buy your pass now to save up to $100. We can’t wait to see you in October!

Is your company interested in sponsoring or exhibiting at TC Sessions: SaaS 2021? Contact our sponsorship sales team by filling out this form.


Aug
02
2021
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Salesforce steps into RPA buying Servicetrace and teaming it with Mulesoft

Over the last couple of years, robotic process automation or RPA has been red hot with tons of investor activity and M&A from companies like SAP, IBM and ServiceNow. UIPath had a major IPO in April and has a market cap over $30 billion. I wondered when Salesforce would get involved and today the company dipped its toe into the RPA pool, announcing its intent to buy German RPA company Servicetrace.

Salesforce intends to make Servicetrace part of Mulesoft, the company it bought in 2018 for $6.5 billion. The companies aren’t divulging the purchase price, suggesting it’s a much smaller deal. When Servicetrace is in the fold, it should fit in well with Mulesoft’s API integration, helping to add an automation layer to Mulesoft’s tool kit.

“With the addition of Servicetrace, MuleSoft will be able to deliver a leading unified integration, API management and RPA platform, which will further enrich the Salesforce Customer 360 — empowering organizations to deliver connected experiences from anywhere. The new RPA capabilities will enhance Salesforce’s Einstein Automate solution, enabling end-to-end workflow automation across any system for service, sales, industries, and more,” Mulesoft CEO Brent Hayward wrote in a blog post announcing the deal.

While Einstein, Salesforce’s artificial intelligence layer, gives companies with more modern tooling the ability to automate certain tasks, RPA is suited to more legacy operations, and this acquisition could be another step in helping Salesforce bridge the gap between older on-prem tools and more modern cloud software.

Brent Leary, founder and principal analyst at CRM Essentials says that it brings another dimension to Salesforce’s digital transformation tools. “It didn’t take Salesforce long to move to the next acquisition after closing their biggest purchase with Slack. But automation of processes and workflows fueled by real-time data coming from a growing variety of sources is becoming a key to finding success with digital transformation. And this adds a critical piece to that puzzle for Salesforce/MuleSoft,” he said.

While it feels like Salesforce is joining the market late, in an investor survey we published in May, Laela Sturdy, general partner at CapitalG, told us that we are just skimming the surface so far when it comes to RPA’s potential.

“We’re a long way from needing to think about the space maturing. In fact, RPA adoption is still in its early infancy when you consider its immense potential. Most companies are only now just beginning to explore the numerous use cases that exist across industries. The more enterprises dip their toes into RPA, the more use cases they envision,” Sturdy responded in the survey.

Servicetrace was founded in 2004, long before the notion of RPA even existed. Neither Crunchbase nor PitchBook shows any money raised, but the website suggests a mature company with a rich product set. Customers include Fujitsu, Siemens, Merck and Deutsche Telekom.

Jun
17
2021
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How to launch a successful RPA initiative

Robotic process automation (RPA) is rapidly moving beyond the early adoption phase across verticals. Automating just basic workflow processes has resulted in such tremendous efficiency improvements and cost savings that businesses are adapting automation at scale and across the enterprise.

While there is a technical component to robotic automation, RPA is not a traditional IT-driven solution. It is, however, still important to align the business and IT processes around RPA. Adapting business automation for the enterprise should be approached as a business solution that happens to require some technical support.

A strong working relationship between the CFO and CIO will go a long way in getting IT behind, and in support of, the initiative rather than in front of it.

A strong working relationship between the CFO and CIO will go a long way in getting IT behind, and in support of, the initiative rather than in front of it.

More important to the success of a large-scale RPA initiative is support from senior business executives across all lines of business and at every step of the project, with clear communications and an advocacy plan all the way down to LOB managers and employees.

As we’ve seen in real-world examples, successful campaigns for deploying automation at scale require a systematic approach to developing a vision, gathering stakeholder and employee buy-in, identifying use cases, building a center of excellence (CoE) and establishing a governance model.

Create an overarching vision

Your strategy should include defining measurable, strategic objectives. Identify strategic areas that benefit most from automation, such as the supply chain, call centers, AP or revenue cycle, and start with obvious areas where business sees delays due to manual workflow processes. Remember, the goal is not to replace employees; you’re aiming to speed up processes, reduce errors, increase efficiencies and let your employees focus on higher value tasks.

May
07
2021
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5 investors discuss the future of RPA after UiPath’s IPO

Robotic process automation (RPA) has certainly been getting a lot of attention in the last year, with startups, acquisitions and IPOs all coming together in a flurry of market activity. It all seemed to culminate with UiPath’s IPO last month. The company that appeared to come out of nowhere in 2017 eventually had a final private valuation of $35 billion. It then had the audacity to match that at its IPO. A few weeks later, it still has a market cap of over $38 billion in spite of the stock price fluctuating at points.

Was this some kind of peak for the technology or a flash in the pan? Probably not. While it all seemed to come together in the last year with a big increase in attention to automation in general during the pandemic, it’s a market category that has been around for some time.

RPA allows companies to automate a group of highly mundane tasks and have a machine do the work instead of a human. Think of finding an invoice amount in an email, placing the figure in a spreadsheet and sending a Slack message to Accounts Payable. You could have humans do that, or you could do it more quickly and efficiently with a machine. We’re talking mind-numbing work that is well suited to automation.

In 2019, Gartner found RPA was the fastest-growing category in enterprise software. In spite of that, the market is still surprisingly small, with IDC estimates finding it will reach just $2 billion in 2021. That’s pretty tiny for the enterprise, but it shows that there’s plenty of room for this space to grow.

We spoke to five investors to find out more about RPA, and the general consensus was that we are just getting started. While we will continue to see the players at the top of the market — like UiPath, Automation Anywhere and Blue Prism — jockeying for position with the big enterprise vendors and startups, the size and scope of the market has a lot of potential and is likely to keep growing for some time to come.

To learn about all of this, we queried the following investors:

  • Mallun Yen, founder and partner, Operator Collective
  • Jai Das, partner and president, Sapphire Ventures
  • Soma Somasegar, managing director, Madrona Venture Group
  • Laela Sturdy, general partner, CapitalG
  • Ed Sim, founder and managing partner, Boldstart Ventures

We have seen a range of RPA startups emerge in recent years, with companies like UiPath, Blue Prism and Automation Anywhere leading the way. As the space matures, where do the biggest opportunities remain?

Mallun Yen: One of the fastest-growing categories of software, RPA has been growing at over 60% in recent years, versus 13% for enterprise software generally. But we’ve barely scratched the surface. The COVID-19 pandemic forced companies to shift how they run their business, how they hire and allocate staff.

Given that the workforce will remain at least partially permanently remote, companies recognize that this shift is also permanent, and so they need to make fundamental changes to how they run their businesses. It’s simply suboptimal to hire, train and deploy remote employees to run routine processes, which are prone to, among other things, human error and boredom.

Jai Das: All the companies that you have listed are focused on automating simple repetitive tasks that are performed by humans. These are mostly data entry and data validation jobs. Most of these tasks will be automated in the next couple of years. The new opportunity lies in automating business processes that involve multiple humans and machines within complicated workflow using AI/ML.

Sometimes this is also called process mining. There have been BPM companies in the past that have tried to automate these business processes, but they required a lot of services to implement and maintain these automated processes. AI/ML is providing a way for software to replace all these services.

Soma Somasegar: For all the progress that we have seen in RPA, I think it is still early days. The global demand for RPA market size in terms of revenue was more than $2 billion this past year and is expected to cross $20 billion in the coming decade, growing at a CAGR of more than 30% over the next seven to eight years, according to analysts such as Gartner.

That’s an astounding growth rate in the coming years and is a reflection of how early we are in the RPA journey and how much more is ahead of us. A recent study by Deloitte indicates that up to 50% of the tasks in businesses performed by employees are considered mundane, administrative and labor-intensive. That is just a recipe for a ton of process automation.

There are a lot of opportunities that I see here, including process discovery and mining; process analytics; application of AI to drive effective, more complex workflow automation; and using low code/no code as a way to enable a broader set of people to be able to automate tasks, processes and workflows, to name a few.

Laela Sturdy: We’re a long way from needing to think about the space maturing. In fact, RPA adoption is still in its early infancy when you consider its immense potential. Most companies are only now just beginning to explore the numerous use cases that exist across industries. The more enterprises dip their toes into RPA, the more use cases they envision.

I expect to see market leaders like UiPath continue to innovate rapidly while expanding the breadth and depth of their end-to-end automation platforms. As the technology continues to evolve, we should expect RPA to penetrate even more deeply into the enterprise and to automate increasingly more — and more critical — business processes.

Ed Sim: Most large-scale automation projects require a significant amount of professional services to deliver on the promises, and two areas where I still see opportunity include startups that can bring more intelligence and faster time to value. Examples include process discovery, which can help companies quickly and accurately understand how their business processes work and prioritize what to automate versus just rearchitecting an existing workflow.

Apr
21
2021
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As UiPath closes above its final private valuation, CFO Ashim Gupta discusses his company’s path to market

After an upward revision, UiPath priced its IPO last night at $56 per share, a few dollars above its raised target range. The above-range price meant that the unicorn put more capital into its books through its public offering.

For a company in a market as competitive as robotic process automation (RPA), the funds are welcome. In fact, RPA has been top of mind for startups and established companies alike over the last year or so. In that time frame, enterprise stalwarts like SAP, Microsoft, IBM and ServiceNow have been buying smaller RPA startups and building their own, all in an effort to muscle into an increasingly lucrative market.

In June 2019, Gartner reported that RPA was the fastest-growing area in enterprise software, and while the growth has slowed down since, the sector is still attracting attention. UIPath, which Gartner found was the market leader, has been riding that wave, and today’s capital influx should help the company maintain its market position.

It’s worth noting that when the company had its last private funding round in February, it brought home $750 million at an impressive valuation of $35 billion. But as TechCrunch noted over the course of its pivot to the public markets, that round valued the company above its final IPO price. As a result, this week’s $56-per-share public offer wound up being something of a modest down-round IPO to UiPath’s final private valuation.

Then, a broader set of public traders got hold of its stock and bid its shares higher. The former unicorn’s shares closed their first day’s trading at precisely $69, above the per-share price at which the company closed its final private round.

So despite a somewhat circuitous route, UiPath closed its first day as a public company worth more than it was in its Series F round — when it sold 12,043,202 shares at $62.27576 apiece, per SEC filings. More simply, UiPath closed today worth more per-share than it was in February.

How you might value the company, whether you prefer a simple or fully diluted share count, is somewhat immaterial at this juncture. UiPath had a good day.

While it’s hard to know what the company might do with the proceeds, chances are it will continue to try to expand its platform beyond pure RPA, which could become market-limited over time as companies look at other, more modern approaches to automation. By adding additional automation capabilities — organically or via acquisitions — the company can begin covering broader parts of its market.

TechCrunch spoke with UiPath CFO Ashim Gupta today, curious about the company’s choice of a traditional IPO, its general avoidance of adjusted metrics in its SEC filings, and the IPO market’s current temperature. The final question was on our minds, as some companies have pulled their public listings in the wake of a market described as “challenging.”

Why did UiPath not direct list after its huge February raise?

Apr
15
2021
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IBM acquires Italy’s myInvenio to integrate process mining directly into its suite of automation tools

Automation has become a big theme in enterprise IT, with organizations using RPA, no-code and low-code tools, and other technology to speed up work and bring more insights and analytics into how they do things every day, and today IBM is announcing an acquisition as it hopes to take on a bigger role in providing those automation services. The IT giant has acquired myInvenio, an Italian startup that builds and operates process mining software.

Process mining is the part of the automation stack that tracks data produced by a company’s software, as well as how the software works, in order to provide guidance on what a company could and should do to improve it. In the case of myInvenio, the company’s approach involves making a “digital twin” of an organization to help track and optimize processes. IBM is interested in how myInvenio’s tools are able to monitor data in areas like sales, procurement, production and accounting to help organizations identify what might be better served with more automation, which it can in turn run using RPA or other tools as needed.

Terms of the deal are not being disclosed. It is not clear if myInvenio had any outside investors (we’ve asked and are awaiting a response). This is the second acquisition IBM has made out of Italy. (The first was in 2014, a company called CrossIdeas that now forms part of the company’s security business.)

IBM and myInvenio are not exactly strangers: The two inked a deal as recently as November 2020 to integrate the Italian startup’s technology into IBM’s bigger automation services business globally.

Dinesh Nirmal, GM of IBM Automation, said in an interview that the reason IBM acquired the company was two-fold. First, it lets IBM integrate the technology more closely into the company’s Cloud Pak for Business Automation, which sits on and is powered by Red Hat OpenShift and has other automation capabilities already embedded within it, specifically robotic process automation (RPA), document processing, workflows and decisions.

Second and perhaps more importantly, it will mean that IBM will not have to tussle for priority for its customers in competition with other solution partners that myInvenio already had. IBM will be the sole provider.

“Partnerships are great but in a partnership you also have the option to partner with others, and when it comes to priority, who decides?” he said. “From the customer perspective, will they work just on our deal, or others first? Now, our customers will get the end result of this… We can bring a single solution to an end user or an enterprise, saying, ‘look you have document processing, RPA, workflow, mining.’ That is the beauty of this and what customers will see.”

He said that IBM currently serves with its automation products customers across a range of verticals, including financial, insurance, healthcare and manufacturing.

Notably, this is not the first acquisition that IBM has made to build out this stack. Last year, it acquired WDG to expand into robotic process automation.

And interestingly, it’s not even the only partnership that IBM has had in process mining. Just earlier this month, it announced a deal with one of the bigger names in the field, Celonis, a German startup valued at $2.5 billion in 2019.

Ironically, at the time, my colleague Ron wondered aloud why IBM wasn’t just buying Celonis outright in that deal. It’s hard to speculate if price was one reason. Remember: We don’t know the terms of this acquisition, but given myInvenio was off the fundraising radar, chances are it’s possibly a little less than Celonis’s price tag.

We’ve asked and IBM has confirmed that it will continue to work with Celonis alongside now offering its own native process mining tools.

“In keeping with IBM’s open approach and $1 billion investment in ecosystem, [Global Business Services, IBM’s enterprise services division] works with a broad range of technologies based on client and market demand, including IBM AI and Automation software,” a spokesperson said in a statement. “Celonis focuses on execution management which supports GBS’ transformation of clients’ business processes through intelligent workflows across industries and domains. Specifically, Celonis has deep connectivity into enterprise systems such as Salesforce, SAP, Workday or ServiceNow, so the Celonis EMS platform helps GBS accelerate clients’ transformations and BPO engagements with these ERP platforms.”

Indeed, at the end of the day, companies that offer services, especially suites of services, are working in environments where they have to be open to customers using their own technology, or bringing in something else.

There may have been another force pushing IBM to bring more of this technology in-house, and that’s wider competitive climate. Earlier this year, SAP acquired another European startup in the process mining space, Signavio, in a deal reportedly worth about $1.2 billion. As more of these companies get snapped up by would-be IBM rivals, and those left standing are working with a plethora of other parties, maybe it was high time for IBM to make sure it had its own horse in the race.

“Through IBM’s planned acquisition of myInvenio, we are revolutionizing the way companies manage their process operations,” said Massimiliano Delsante, CEO, myInvenio, who will be staying on with the deal. “myInvenio’s unique capability to automatically analyze processes and create simulations — what we call a ‘Digital Twin of an Organization’ — is joining with IBM’s AI-powered automation capabilities to better manage process execution. Together we will offer a comprehensive solution for digital process transformation and automation to help enterprises continuously transform insights into action.”

Apr
07
2021
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Berlin’s Bryter raises $66M to take its no-code tools for enterprises to the US

No-code startups continue to see a lot of traction among enterprises, where employees — strictly speaking, non-technical, but still using software every day — are getting hands-on and building apps to take on some of the more repetitive aspects of their jobs, the so-called “citizen coders” of the working world.

And in one of the latest developments, Bryter — an AI-based no-code startup that has built a platforms used by some 100 global enterprises to date across some 2,000 business applications and workflows — is announcing a new round of funding to double down on that opportunity. The Berlin-based company has closed a Series B of $66 million, money that it will be investing into its platform and expanding in the U.S. out of a New York office it opened last year. The funding comes on the heels of seeing a lot of demand for its tools, CEO and co-founder Michael Grupp said in an interview.

“It was a great year for low-code and no-code platforms,” said Grupp, who co-founded the company with Micha-Manuel Bues and Michael Hübl. “What everyone has realized is that most people don’t actually care about the tech. They only care about the use cases. They want to get things done.” Customers using the service include the likes of McDonald’s, Telefónica, PwC, KPMG and Deloitte in Europe, as well as banks, healthcare and industrial enterprises.

Tiger Global is leading this round, with previous backers Accel, Dawn Capital, Notion Capital and Cavalry Ventures also participating, along with a number of individual backers (they include Amit Agarwal, CPO of Datadog; Lars Björk, former CEO of Qlik; Ulf Zetterberg, founder and CEO of Seal Software; and former ServiceNow global SVP James Fitzgerald). The valuation is not being disclosed; Bryter has raised around $90 million to date.

Accel and Dawn co-led Bryter’s Series A of $16 million less than a year ago, in June 2020, a rapid funding pace that underscores both interest in the no-code/low-code space — Bryter’s enterprise customer base has doubled from 50 since then — and the fact that startups in it are striking while the iron is hot.

Bryter’s not the only one: Airtable, Genesis, Rows, Creatio and Ushur are among the many startups building “hands-on tech creation for non-techie people” that have raised money in the last several months.

Automation has been the bigger trend that has propelled a lot of this activity. Knowledge workers spend most of their time these days in apps — a state of affairs that pre-dates the COVID-19 pandemic, but has definitely been furthered throughout it. While some of that work still requires manual involvement and evaluation from those workers, software has automated large swathes of those jobs.

RPA — robotic process automation, where companies like UiPath, Automation Anywhere and Blue Prism have taken a big lead — has accounted for a significant chunk of that activity, especially when it comes to reading forms and lots of data entry. But there remains a lot of other transactions and activities within specific apps where RPA is typically not used (not yet at least!). And this is where non-tech workers are finding that no-code tools like Bryter, which use artificial intelligence to deliver more personalised, yet scalable, automation, can play a very useful role.

“We sit on top of RPA in many cases,” said Grupp.

The company says that business functions where its platform has been implemented include compliance, legal, tax, privacy and security, procurement, administration and HR, and the kinds of features that are being built include virtual assistants, chatbots, interactive self-service tools and more.

These don’t replace people as such, but cut down the time they need to spend in specific tasks to process and handle information within them, and could in theory also be used to build tools for customers to interact with services more easily, cutting down on the amount of time that agents are getting details and handling engagements.

That scalability and the rapid customer up-take from a pool of users that extends beyond tech early adopters are part of what attracted the funding.

“Bryter has all the characteristics of a top-tier software company: high quality product that solves a real customer pain point, a large market opportunity and a world-class founding team,” said John Curtius, a partner at Tiger Global, in a statement. “The feedback from Bryter’s customers was resoundingly positive in our research, and we are excited to see the company reach new heights over the coming years.”

“Bryter has seen explosive growth over the last year, signing landmark customers across a large number of sectors and use cases. This does not come as a surprise. In the pandemic-affected world, digitalisation is no longer a nice to have, it is an imperative,” added Evgenia Plotnikova, a partner at Dawn Capital.

Mar
26
2021
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UIPath’s meteoric rise from unknown startup to $35B RPA juggernaut

When TechCrunch covered UIPath’s Series A in 2017, it was a small startup out of Romania working in a little known area of enterprise software called robotic process automation (RPA).

Then the company took off with increasingly large multibillion dollar valuations. It progressed through its investment rounds, culminating with a $750 million round on an eye-popping $35 billion valuation last month.

This morning, the company took the next step on its rapid-fire evolutionary path when it filed its S-1 to go public. To illustrate just how fast the company’s rise has been, take a look at its funding history:

Chart illustrating rapid rise of UIPath through its funding rounds from 2017-2021

Image Credits: Bryce Durbin/TechCrunch

RPA is much better understood these days with larger enterprise software companies like SAP, Microsoft, IBM and ServiceNow getting involved. With RPA, companies can automate a mundane process like processing an insurance claim, moving work automatically, while bringing in humans only when absolutely necessary. For example, instead of having a person enter a number in a spreadsheet from an email, that can happen automatically.

In June 2019, Gartner reported that RPA was the fastest-growing area in enterprise software, growing at over 60% per year, and attracting investors and larger enterprise software vendors to the space. While RPA’s growth has slowed as it matures, a September 2020 Gartner report found it expanding at a more modest 19.5% with total revenue expected to reach $2 billion in 2021. Gartner found that stand-alone RPA vendors UIPath, Blue Prism and Automation Anywhere are the market leaders.

Although the market feels rather small given the size of the company’s valuation, it’s still a nascent space. In its S-1 filing this morning, the company painted a rosy picture, projecting a $60 billion addressable market. While TAM estimates tend to trend large, UIPath points out that the number encompasses far more than pure RPA into what they call “Intelligent Process Automation.” That could include not only RPA, but also process discovery, workflow, no-code development and other forms of automation.

Indeed, as we wrote earlier today on the soaring process automation market, the company is probably going to need to expand into these other areas to really grow, especially now that it’s competing with much bigger companies for enterprise automation dollars.

While UIPath is in the midst of its quiet period, it came up for air this week to announce that it had bought Cloud Elements, a company that gives it access to API integration, an important component of automation in the enterprise. Daniel Dines, the company co-founder and CEO said the acquisition was about building a larger platform of automation tools.

“The acquisition of Cloud Elements is just one example of how we are building a flexible and scalable enterprise-ready platform that helps customers become fully automated enterprises,” he said in a statement.

While there is a lot of CEO speak in that statement, there is also an element of truth in that the company is looking at the larger automation story. It can use some of the cash from its prodigious fundraising to begin expanding on its original vision with smaller acquisitions that can fill in missing pieces in the product road map.

The company will need to do that and more to compete in a rapidly moving market, where many vendors are fighting for different parts of the business. As it continues its journey to becoming a public company, it will need to continue finding new ways to increase revenue by tapping into different parts of the wider automation stack.

Mar
26
2021
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No code, workflow and RPA line up for their automation moment

We’ve seen a lot of trend lines moving throughout 2020 and into 2021 around automation, workflow, robotic process automation (RPA) and the movement to low-code and no-code application building. While all of these technologies can work on their own, they are deeply connected and we are starting to see some movement toward bringing them together.

While the definition of process automation is open to interpretation, and could include things like industrial automation, Statista estimates that the process automation market could be worth $74 billion in 2021. Those are numbers that are going to get the attention of both investors and enterprise software executives.

Just this week, Berlin-based Camunda announced a $98 million Series B to help act as a layer to orchestrate the flow of data between RPA bots, microservices and human employees. Meanwhile, UIPath, the pure-play RPA startup that’s going to IPO any minute now, acquired Cloud Elements, giving it a way to move beyond RPA into API automation.

Not enough proof for you? How about ServiceNow announcing this week that it is buying Indian startup Intellibot to give it — you guessed it — RPA capabilities. That acquisition is part of a broader strategy by the company to move into full-scale workflow and automation, which it discussed just a couple of weeks ago.

Meanwhile, at the end of last year, SAP bought a different Berlin process automation startup, Signavio, for $1.2 billion after announcing new automated workflow tools and an RPA tool at the beginning of December. Microsoft is in on it too, having acquired process automation startup Softmotive last May, which it then combined with its own automation tool PowerAutomate.

What we have here is a frothy mix of startups and large companies racing to provide a comprehensive spectrum of workflow automation tools to empower companies to spin up workflows quickly and move work involving both human and machine labor through an organization.

The result is hot startups getting prodigious funding, while other startups are exiting via acquisition to these larger companies looking to buy instead of build to gain a quick foothold in this market.

Cathy Tornbohm, Distinguished Research vice president at Gartner, says part of the reason for the rapidly growing interest is that these companies have stayed on the sidelines up until now, but they see an opportunity and are using their checkbooks to play catch-up.

“IBM, SAP, Pega, Appian, Microsoft, ServiceNow all bought into the RPA market because for years they didn’t focus on how data got into their systems when operating between organizations or without a human. [Instead] they focused more on what happens inside the client’s organization. The drive to be digitally more efficient necessitates optimizing data ingestion and data flows,” Tornbohm told me.

For all the bluster from the big vendors, they do not control the pure-play RPA market. In fact, Gartner found that the top three players in this space are UIPath, Automation Anywhere and Blue Prism.

But Tornbohm says that, even as the traditional enterprise vendors try to push their way into the space, these pure-play companies are not sitting still. They are expanding beyond their RPA roots into the broader automation space, which could explain why UIPath came up from its pre-IPO quiet period to make the Cloud Elements announcement this week.

Dharmesh Thakker, managing partner at Battery Ventures, agrees with Tornbohm, saying that the shift to the cloud, accelerated by COVID-19, has led to an expansion of what RPA vendors are doing.

“RPA has traditionally focused on automation-UI flow and user steps, but we believe a full automation suite requires that ability to automate processes across the stack. For larger companies, we see their interest in the category as a way to take action on data within their systems. And for standalone RPA vendors, we see this as validation of the category and an invitation to expand their offerings to other pillars of automation,” Thakker said.

The activity we have seen across the automation and workflow space over the last year could be just the beginning of what Thakker and Tornbohm are describing, as companies of all sizes fight to become the automation stack of choice in the coming years.


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