Industry News Desk
One of SAP’s Co-CEOs to Step Down
The plan then is for the 47-year-old Dane to join the German company’s supervisory board
Jul. 23, 2013 08:30 AM
Jim Hagemann Snabe, whose contract was supposed to run through 2017, has apparently tired of his half of SAP's CEO job and will be stepping down next May leaving the post solely to Bill McDermott, a 51-year-old American.
The plan then is for the 47-year-old Dane, who's been responsible for SAP's product development, to join the German company's supervisory board (provided 25% of SAP's shareholders vote for him).
Supposedly he wants to see more of his family. In a canned statement he said, "After more than 20 years with SAP, I have decided that it is time for me to begin the next phase of my career, closer to my family."
SAP reported its latest quarter last week, coming in with less-than-expected results, and trimmed its revenue outlook for the year citing slow growth in China and slow adoption of its cloud product.
All Things Digital said customers aren't seeing the ROI they hoped for from conversion to HANA while at the same time the cloud sales it is making are impacting its legacy software business.
It previously forecast 11%-13% growth in software revenues. Now it's saying the number will be more like 10%.
SAP recently moved all its development activities under executive board member Vishal Sikka, based in Silicon Valley, who replaces cloud chief Lars Dalgaard.
McDermott and Snabe replaced Leo Apotheker after he was sacked in February of 2010.
With McDermott, the sales guy, as sole CEO, Reuters thinks SAP will focus more on the US market, something it's been doing for a while now anyway considering Europe's lack of growth.
McDermott, who came up through Xerox and Siebel Systems, is based at SAP's US headquarters near Philadelphia. Snabe lives in Denmark.
Meanwhile, Sanjay Poonen, SAP's head of mobile, will leave the company at the end of this month.