In this third blog in the short series of Automation Predictions for 2019, Alex Croucher our Director of Intelligent Automation, shares some final predictions for the year ahead. You can find the previous 2 articles here
Large technology businesses buying smaller software vendors is nothing new but with Intelligent Automation being a relatively immature marketplace, there have only been a few of note e.g. Pega’s purchase of OpenSpan and SAP’s recent acquisition of Contextor. With a small number of software vendors such as UiPath and Automation Anywhere now dominating the market and raising large sums this year, smaller vendors such as Kryon and Thoughtonomy may merge or be acquired by more established organisations. That could be tech businesses trying to augment their existing capabilities or a global consultancy trying to develop a differentiator vs their competitors (particularly relevant with process mining vendors).
Will the big 3 be acquired? Unlikely.
- Why would they allow it? Automation Anywhere and UiPath have both raised huge sums this year to grow their businesses and develop their product offerings. If they wanted to be acquired, it would have happened earlier this year
- The current valuations of UiPath, Automation Anywhere and Blue Prism mean there are cheaper alternatives available where value can be developed
- Their revenues are growing which will continue pushing up their valuations this year and profits could result in shareholder dividends incentivising investors to hold their assets
Will we see an IPO for Automation Anywhere or UiPath? My gut feeling is no, not this year. I can see me suggesting that in next year’s predictions.
Whether any of these predictions are right or wrong, 2019 will definitely be an exciting year for everyone in the world of Intelligent Automation and related technologies. What are your thoughts? Please let us know your predictions for 2019.
About VKY Automation
VKY Automation are at the forefront of Intelligent Automation technology in Scotland and are the first independent Scottish business to achieve partner status with both Automation Anywhere and UI Path – 2 of the top software vendors in the global automation market. We understand how to get the most out of the technology and how to avoid the pitfalls. Scottish tech news site digit.fyi recently described VKY as one of the leading Intelligent Automation consultancies in Scotland. To find out more about Intelligent Automation and what it can do for you, please get in touch for a confidential and no obligation chat by emailing [email protected]