ServiceNow Acquires RPA Vendor
5/5 (1)
Spread the love
5/5 (1)

ServiceNow announced their intention to acquire robotic process automation (RPA) provider, Intellibot, for an undisclosed sum. Intellibot is a significant tier 2 player in the RPA market, that is rapidly consolidating into the hands of the big three – UiPath, Automation Everywhere, and Blue Prism – and other acquisition-hungry software providers. This is unlikely to be the last RPA acquisition that we see this year with smaller players looking to either go niche or sell out while the market is hot.

Expanding AI/Automation Capabilities

Intellibot is the latest in a string of purchases by ServiceNow that reveals their intention to embed AI and machine learning into offerings. In 2020, they acquired Loom Systems, Passage AI (both January), Sweagle (June), and Element AI (November) in addition to Attivio in 2019. These acquisitions were integrated into the latest version of their Now Platform, code-named Quebec, which was launched earlier this month. As a result, Predictive AIOps and AI Search were newly added to the platform while the low-code tools were expanded upon and became Creator Workflows. This means ServiceNow now offers four primary solutions – IT Workflows, Employee Workflows, Customer Workflows, and Creator Workflows – demonstrating the importance they are placing on low-code and RPA.

ServiceNow was quick to remind the market that although they will be able to offer RPA functionality natively once Intellibot is integrated into their platform, they are still willing to work with competitors. They specifically highlighted that they would continue partnering with UiPath, Automation Anywhere, and Blue Prism, suggesting they plan to use RPA as a complementary technology to their current offerings rather than going head-to-head with the Big Three. Only a month ago, UiPath announced deeper integration with ServiceNow, by expanding automation capabilities for Test Management 2.0 and Agile Development projects.

Expansion in India

The acquisition of Intellibot, based in Hyderabad, is part of ServiceNow’s expansion strategy in India – one of their fastest growing markets. The country is already home to their largest R&D centre outside of the US and they intend to launch a couple of data centres there by March 2022. The company plans to double their local staff levels by 2024, having already tripled the number of employees there in the last two years. The expansion in India means they can increasingly offer services from there to global customers.

Market Consolidation Accelerates

In the Ecosystm Predicts: The Top 5 AI & AUTOMATION Trends for 2021, Ecosystm had talked about technology vendors adding RPA functionality either organically or through acquisitions, this year.

“Buyers will find that many of the automation capabilities that they currently purchase separately will increasingly be integrated in their enterprise applications. This will resolve integration challenges and will be more cost-effective.”

ServiceNow’s purchase is one of several recent examples of low-code vendors acquiring their way into the RPA space. Last year, Appian acquired Novayre Solutions for their Jidoka product and Microsoft snapped up Softomotive. Speculation continues to build that Salesforce could also be assessing RPA targets. Considering RPA market leader, UiPath recently announced that their Series F funding round values the company at USD 35 billion, there is pressure on acquirers to gobble up the remaining smaller players before they are all gone or become prohibitively expensive.

The cloud hyperscalers are also likely to play a growing role in the RPA market over the next year. Microsoft and IBM have already entered the market, coming from the angle of office productivity and business process management (BPM), respectively. Google announced just last week that they will work closely with Automation Anywhere to integrate RPA into their cloud offerings, such as Apigee, AppSheet, and AI Platform. More interestingly, they plan to co-develop new solutions, which might for now satisfy Google’s appetite for RPA rather than requiring an acquisition.


Here are some of the trends to watch for RPA, AI and Automation in 2021. Signup for Free to download Ecosystm’s Top 5 AI & Automation Trends Report.

New call-to-action
1

Please rate this

Darian helps businesses navigate the path towards digital transformation, providing insight into cloud, automation, cybersecurity, and outsourcing. He has spent two decades advising business leaders on using technology to enter new markets, improve client experience, and enhance service delivery. Previously, Darian spent ten years at IBM, where he was a principal advisor for infrastructure services and hybrid cloud in Europe. Prior to this, he was a research manager at IDC, gaining emerging markets experience in Asia Pacific, Central Eastern Europe, Middle East, and Africa. In his final position, Darian headed up IDC’s ANZ offshore research team based in Kuala Lumpur. Originally from New Zealand, Darian is based in Prague, the Czech Republic. He holds a Bachelor of Business, majoring in marketing, from the University of Auckland. Outside of the office, Darian enjoys running up mountains, biking with his young daughters, and researching his family tree.


Similar Blogs

Subscribe to our monthly newsletter. Insights and analysis directly to your inbox.

Future of Work
0 0 vote
Article Rating
Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments