Hyperscience Layoffs: Warning Signals for Automation and RPA Software?

Hyperscience laid off 100 employees – or about 25 percent of the automation software company’s staff, according to The Information. Moreover, Hyperscience Co-founder and CEO Peter Brodsky stepped down, the report indicated.

Hyperscience layoffs offer a warning for IT consulting firms and MSPs that dive into the software automation market and related areas such as Robotic Process Automation (RPA).

Related: List of All Removals in the Technology Industry

Hyperscience Growth, Partnerships and Missteps

Instead of competing directly against RPA tools, Hyperscience’s machine learning software works in conjunction with PRA to help channel partners and end-customers automate document processing.

Anecdotal evidence suggests that Hyperscience, based in New York, will be on rapid growth at least until 2021. In fact, Hyperscience revenue will grow nearly 1,000 percent over a three -year extension, according to the report. Inc. 5000 for 2021.

Most of Hyperscience’s initial partners were enterprise IT consulting firms such as Accenture, Atos, Cognizant, Deloitte, Infosys and Tata Consultancy Services, among others.

The company in December 2021 raised $ 100 million in Series E funding led by Global Founders Capital, Tiger, Stripes, and Bessemer. At the same time, Hyperscience acquired Boxplot, a graph data modeling software startup that “enables organizations to see and better understand their customers’ data and explore how it relates to other data in their organization,” said the consumer at the time.

However, Hyperscience has taken some wrong steps, according to The Information. Errors include: Making a blitz on hiring in sales and marketing even though its software isn’t meeting customers as it expected, the report indicated.

RPA Software: Market Forecast

Despite the downturns in Hyperscience, the overall automation software market appears to be strong and growth in the RPA software segment also appears to be strong. In fact, the global robotic process automation market is expected to reach $ 10.7 billion by 2027, expanding at a CAGR (compound annual growth rate) of 33.6% from 2020 to 2027, according to Grand View Research Inc.

Amid the growth of the RPA market, many companies are acquiring RPA software providers and related RPA consulting skills.

RPA’s major enterprise -focused software companies include Automation Anywhere, Blue Prism, Microsoft Power Automate, Salesforce, ServiceNow and UiPath, among others.

Even IBM jumped into the action, as part of IBM CEO Arvind Krishna’s M&A to pivot the enterprise technology provider towards multi-cloud software that drives business automation.

RPA Software: MSP Opportunities

Meanwhile, startups like Rewst and ElectroNeek want to bring the power of RPA to the MSP sector.

Among the latest moves: Rewst took ConnectWise and Perch Security veteran Wes Spencer as president in February 2022. Earlier, Rewst raised $ 3.5 million from Florida Funders in November 2021. Also, ElectroNeek raised mid -term of 29021 $ 20 million in Series A funding.

Elsewhere, Ingram Micro has agreed to distribute UiPath’s RPA software worldwide, the two technology companies confirmed in May 2021.

Those milestones suggest that automation software is catching up with MSPs. But job cuts at Hyperscience offer a timely reminder of business resets-especially if Wall Street and Venture Capitalists are wary of valuations around the world …

Disclosure: ChannelE2E Editorial Director Joe Panettieri is a member of the Florida Funders.

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