SAP's CEO Resigns: Delays in Launching Online Business Software Cited as One Reason for Downfall
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SAP's CEO Léo Apotheker resigned today. SAP will return to a co-CEO structure, replaced by Bill McDermott, head of field organization, and Jim Hagemann Snabe, head of product development.
The particulars are to be announced early tomorrow.
According to the Financial Times, one reason for the resignation is SAP's delays in the introduction of a new online-based business software for small and medium-size companies.
The competition is getting fierce for companies like SAP that have prospered for years with on-premise software deployments for the world's largest companies.
SaaS providers are starting to make some headway into the market against giants like SAP. Companies like NetSuite are offering services that do not require software or a significant infrastructure.
NetSuite knows it has an opportunity to take clients away from SAP. It has a program for prospective customers that want to switch from SAP to NetSuite.
NetSuite even offers a cloud conversion kit. Here's how it positions itself against SAP:
If you're running SAP R/3 4.6 or 4.7, then you know that it's time to make a difficult decision. Should you upgrade to SAP ERP 6.0--and face a notoriously complicated, expensive and risky process--or pay a costly hike in maintenance to keep your old system running? Fortunately, there's another option.
In face of this, it doesn't help that SAP increased maintenance fees during a worldwide recession.
Dennis Howlett said the resignation is no surprise.
"It won't take a nano-second for the enterprise pundit tongues to start wagging. I'll kick it off. Leo's departure has long been predicted. In private conversations stretching back to last fall, I initially thought he would survive through SAPPHIRE but more recently thought the company would get the Q4 earnings out the way and then make changes. So it seems.The choice of new leaders should not be surprising but hardly imaginative. In effect, SAP has chosen 'last men standing' rather than taking what some of us thought might be a bold move by appointing an outsider."
What is SAP's alternative in the market? How is it moving out of its shell into a more modern company that can compete with SaaS providers like NetSuite? We'll take a look at this issue tomorrow on ReadWriteCloud.
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It is downhill for SAP. People like Shai Agassi understood that when he left the company. Good riddance .
SAP vs. Netsuite?
Seriously? Maybe Joey's Biotech Startup, but Dow has spent more than $4B over the last 10 years to integrate SAP into their enterprise. Their support fees are $40M+/year just for software.
Get real.
-XC
The article sounds more like an ad for NetSuite, which isn't even a very good tool to begin with.
Companies who 'exist' use NetSuite. Companies who want to actually make money and grow use SAP.
BTW, Shai left because of his own ego.
Brian,
Keep thinking that way and you'll soon realize the world is changing my friend.
XC,
so you think $4B, 10 years to integrate a piece of software and $40M/year in maintenance is the way to go?
It might well be that both you and Brian work for SAP.
There's much more to this than NetSuite or the product development schedule. Leo recruited, trained and shaped the field organizations over a decade and coveted the top job for just as long. A skilled bureaucratic in-fighter, with loyalists hand-picked and placed at strategic junctions throughout SAP, he isn't the type to fall on his sword over this long-standing and on-going agility issue. There's more to the story that hasn't surfaced.
sometimes company post blogs to manipulate stock price....
its either time time to buy or sell, lose or win...
I think there is lot of technology lobbying inside the company. The old timers want to do anything and everything in ABAP. I have seen in my projects where ABAP related products have failed to comply with the latest industry standards. As a result, customers had to do ground up development or move away from SAP.
It is downhill for SAP. People like Shai Agassi understood that when he left the company. Good riddance . which isn't even a very good tool to begin with.
Anybody know how much cost useful system erp ?! thanks for answer
A skilled bureaucratic in-fighter, with loyalists hand-picked and placed at strategic junctions throughout SAP, he isn't the type to fall on his sword over this long-standing and on-going agility issue. There's more to the story that hasn't surfaced.
Seriously? Maybe Joey's Biotech Startup, but Dow has spent more than $4B over the last 10 years to integrate SAP into their enterprise. Their support fees are $40M+/year just for software
A skilled bureaucratic in-fighter, with loyalists hand-picked and placed at strategic junctions throughout SAP, he isn't the type to fall on his sword over this long-standing and on-going agility issue. There's more to the story that hasn't surfaced
It is downhill for SAP. People like Shai Agassi understood that when he left the company. Good riddance .
Seriously? Maybe Joey's Biotech Startup, but Dow has spent more than $4B over the last 10 years to integrate SAP into their enterprise. Their support fees are $40M+/year just for software
think there is lot of technology lobbying inside the company. The old timers want to do anything and everything in ABAP. I have seen in my projects where ABAP related products have failed to comply with the latest industry standards.
There's much more to this than NetSuite or the product development schedule. Leo recruited, trained and shaped the field organizations over a decade and coveted the top job for just as long.