The Automation Landscape in Flux: What’s Next for Leading Automation Players?

EMA (Enterprise Management Associates) estimates the Workload Automation (WLA) market could grow to as much as $5.1 billion over the next five years. The enterprise automation industry is undergoing a period of dramatic transformation. Recent acquisitions, divestitures, and shifting strategies are redrawing the map for customers and stakeholders alike. Customers have questions about what vendors they can depend on and where their solutions are headed. The big question on people’s minds is: Are you sure the solution you have today will be fit for purpose in three years’ time? What about five years? Nobody wants to get left behind in this ever-accelerating automation landscape.

Let’s dive into the current state of some of the major automation players and explore what might lie ahead.

BMC: Splitting to survive?

Once a titan in IT operations, BMC has encountered roadblocks on its path to going public or securing a lucrative exit. BMC first went public in an initial public offering (IPO) in 1988. In 2013 the company was taken private by KKR, a private equity firm. The recent organizational split hints at a new direction. Gartner VP Analyst Gregg Siegfried recently stated, “A decision by BMC to split into two independent companies was surprising from a timing perspective, but may have taken place so one unit, or potentially both, could be eventually sold off."

The mainframe side will keep the BMC name, along with their automation products, and the other half will be called BMC Helix and focus on software tools that monitor and manage technology in an organization.

What’s next for BMC?

• The split could streamline operations, enabling more focused growth strategies for individual segments. One of the businesses may do an IPO or be sold to another competitor or private equity buyer.
• On the flip side, fragmenting the company could lead to a loss of synergy across its automation portfolio. Time will tell if this gamble pays off or leads to further fragmentation.
• One thing is certain: Customers don’t like uncertainty, and some will undoubtedly start looking for other options, especially if their contract is nearing completion.

Redwood Software: A strategy for turmoil or transformation?

Redwood’s more recent moves, including the acquisition of ActiveBatch and Tidal, followed by significant staff reductions, signalled a decisive pivot. The company’s end-of-life (EOL) announcement for SAP BPA (December 2024) has left customers scrambling to migrate to alternative solutions. Additionally, Redwood itself has changed ownership, adding more uncertainty to the mix. In September 2024, Redwood Software agreed to be acquired by Vista Equity Partners and Warburg Pincus for a possible $2.5B.

What’s next for Redwood?

These bold but risky moves could either herald a focused strategy aimed at reshaping the company into a leaner, more efficient player or alienate a critical customer base. Key questions remain:

• Will Redwood double down on new product innovation or seek further acquisitions?
• How will it rebuild trust with enterprise customers navigating forced migrations?
• How will their existing product lines be supported and updated with such a limited staff?

IBM’s IWS: Where is HCL heading?

IBM’s sale of its Workload Automation (IWS) solution to HCL Technologies back in 2018 raised eyebrows. India-based HCL is known primarily for its IT services rather than software product development. The company continues to face a steep climb in demonstrating it can successfully maintain and innovate IWS.

The road ahead

HCL must prove its mettle by delivering:

• A clear and credible product roadmap.
• Investments in R&D to modernize IWS and address evolving customer needs. Without a strong strategy, the acquisition risks stagnating or even eroding the product’s competitive edge.
• And then there’s the question of who bears responsibility for the product? IBM holds the commercial contract, while HCL delivers the product.

Stonebranch Software: The clock is ticking

Founded in 1999, Stonebranch has carved out a niche in the automation space. In 2024, Stonebranch received an infusion of cash from EMH, which took a significant minority position in the company. But, just like some of its competitors, its trajectory begs the question: what’s the exit strategy? As a private company, it faces pressure to either scale dramatically or find a buyer.

Possible outcomes:

• A strategic acquisition by a larger player could provide resources to scale.
• However, inaction risks falling behind in an industry increasingly dominated by consolidation and aggressive innovation.
• As a private company owned by equity partners, leaders may be hoping to pursue an IPO at some point to give investors an exit.

Broadcom: Stability and growth in automation

Amid the turbulence, Broadcom emerges as a paragon of stability. The company’s acquisition of CA Technologies brought in a robust portfolio of automation tools. Unlike others in this space, Broadcom has consistently invested in all its automation products, releasing multiple major updates since the acquisition.

What sets Broadcom apart?

• Strong financial metrics provide room for sustained investment in R&D.
• A clear commitment to its automation portfolio positions Broadcom as a reliable long-term partner for enterprises.
• Consistent product updates across its entire portfolio.
• Strong, global customer support to help customers resolve issues quickly.
• Solid customer reviews.

Conclusion: Navigating the changing automation landscape

The automation industry’s major players are at crossroads, each facing unique challenges and opportunities. Customers should closely monitor these developments, as the stability and innovation potential of these vendors will have a direct impact on their operations.

• For those working with Redwood, SAP BPA’s end-of-life and the company’s restructuring are red flags requiring proactive planning.
• IBM IWS customers must press HCL for transparency on its product roadmap.
• BMC and Stonebranch’s uncertain futures underscore the importance of vetting vendor stability before making strategic commitments.

In this volatile environment, Broadcom stands out as the safe bet, consistently delivering on promises with significant ongoing investments in automation tools.

Key takeaway

Enterprises must remain vigilant, ready to adapt, and prepared to migrate if necessary. The automation landscape is shifting, and staying ahead requires both awareness and action.