Dave Vellante from SiliconAngle, and Erik Bradley from Enterprise Technology Research, recently made their analysis and predictions regarding Robotic Process Automation domain. According to their discussion, automation makes a resurgence in 2023, with ETR data showing an increase in spending momentum. UiPath and Microsoft Power Automate will lead, with UiPath separating itself from Automation Anywhere. However, Microsoft Power Automate has a significant presence with its “good enough” approach.
The focus for robotic process automation and automation generally is shifting from back-office to front-office workloads, with software testing emerging as a mainstream use case. Machine learning and AI are becoming more embedded in end-to-end automations. Low-code is also becoming more prevalent, serving lines of business. This trend is expected to continue as organizations strive to automate as much as possible, particularly in light of recent layoffs in the tech industry. However, there is a challenge for companies like UiPath and Automation Anywhere to compete with Microsoft’s low cost and ease of use. To compete, these companies will need to have a 10 times better product that offers more powerful end-to-end use cases.
Surprisingly, a recent Cowen survey in the U.S. and Europe captured the following results regarding automation:
- Two-thirds of respondents are currently involved with or plan to assess RPA in 2023;
- 72% that are implemented or in proof-of-concept anticipate RPA spending growth. UiPath was the most cited vendor (68%) followed by Microsoft (41%).
At a starting point of $15 per user per month for Power Automate, it’s unlikely that Microsoft has fewer RPA deployments. We note the ETR data across 1,500-plus respondents shows almost the exact reverse in terms of account presence (60%/40% Microsoft over UiPath). But the Cowen data caught the attention. Nonetheless, firms like UiPath, Automation Anywhere and the others listed above have significantly broader enterprise-wide automation agendas and can offer greater benefits; albeit at higher software costs.
Watch the full discussion on Dave’s and Erik’s predictions around the automation: