Out with the new in with the old

Users of SAP software may be intrigued to hear that its chief executive Léo Apotheker was forced to “unexpectedly resign” this week just seven months into the job.

It seems the German company declined to renew Apotheker’s contact and will revert back to having two joint CEOs; current board members Bill McDermott, head of field organisation, and Jim Hagemann Snabe, head of product development.

Accountants which use SAP may feel vindicated in this move as reports have already begun to circulate that the change are a result of the company trying to increase support services by 22% last year.

However following a backlash from user groups the company backtracked and instead priced its Standard Support package at 18% of software licences.

One of the biggest selling factors in a predominately on-premise or traditional software company is its brand strength.

However the latest news has “increased uncertainty” on the company’s future according to some analysts.

As the software industry this year is to go through various changes, with the growing demand of online and remote working capabilities; the introduction of inline eXtensible Business Reporting Language for tax filing; and the introduction of IFRS; it seems odd SAP would pick now to let its CEO go, without giving him the chance to sink his teeth into the role and face the changes head on.

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