Tuesday, September 14, 2010

SAP sales drop turmoil spread to China, CEO to resign

As with other industries, IT industry personnel changes normal, but the world's largest business management software company SAP's management changes, both at Headquarters and in China, is always beyond industry expectations.

2009 Q4 revenue down SAP management restructuring

February 8 am, according to foreign media reports, SAP announced its fourth CEO Li Aike (Leo Apotheker) after the expiration of the employment contract not to renew, resign his office, the company has appointed two co-CEO to replace its CEO jobs, respectively, president, SAP Global Operations, Bill McDermott (Bill McDermott) and product development business leader Shijie Han (Jim Hagemann Snabe).

SAP also announced that its Chief Technology Officer Vishal Sikka has joined the Executive Committee, and co-founder Hasso Plattner (Hasso Plattner) will remain as chairman.

Previously, SAP Q4 release, rumors, SAP China, after the first loss, SAP China President Zhang Liesheng also will soon resign. Prior to this, SAP Asia Pacific, North Asia have made executives also resigned. This is from Li Yike and Zhang Liesheng office, only about two years time.

Li Yike Since April 2008 he was appointed CEO. Zhang Liesheng will begin in May 2008 as president of SAP China.

January 27, SAP announced results for the fourth quarter of 2009. Report, SAP 09 in the fourth quarter net profit fell 12 percent, from 830 million euros a year earlier fell to 727 million euros, lower than analyst expectations of 736 million euros. While total revenue was down 9% to 3.19 billion euros, of which software revenue is down 15%, to 11.2 billion euros.

For less than the analysis of the expected earnings, SAP said the difficult market environment is the main reason for falling profits, but business-related software revenue in 2010 will continue to grow, the growth of the software and follow-up services in 2010 will reach 4% to 8 %.

Zhang Liesheng also said, SAP's revenue below analyst forecasts, but the SAP that the company is progressing, which is SAP's business model by the decision, SAP is not in distress and to cut spending, "We have new software sector , there are some services, this is a balanced model. "" may have some analysts say that forecast could be 31% to 32%, my personal view is that you grow with your profits will always be relevant. When the two months in advance when there is a progressive not so fast, it should be a balanced development. "Zhanglie Sheng said.

The industry believes that regardless of whether SAP is really satisfactory, the CEO departure is a signal. And whether it is SAP, or Li Yike I, not indicated in the decision not to renew the contract how specifically made. In a brief statement, SAP announced the "Company Board of Supervisors unanimously agreed" not to renew the contract of employment Li Yike. This gives the industry more room for speculation.

Leave the technology to send the markets rise?

Li Yike 1988, joined the SAP, SAP co-founder of France, has worked as a SAP France, Belgium, head of Middle East and Africa. April 2008 was promoted to the company's co-CEO. Since January 2009 Henning (Henning Kagermann) retirement began as co-CEO of Li Aike before the start full play CEO responsibilities.

Li Aike is SAP's first non-engineer to enable the background of CEO. Has been, SAP has the United States and the European culture of confrontation between the two factions, the former acting publicity, pay attention to the struggle for markets; the latter act calm, respected strict perfect, to behave as a guide. From the outside, Li Yike's office, on behalf of SAP is moving from a technology-oriented company with a market-oriented shift-based company.

McDermott said the current co-CEO, Li Aike "more familiar with the market, the company has a better understanding of his vision, he thinks the company is finally doing things from a customer perspective issue, so it can continue to grow on him, how the company There are no limitations in the development of thinking. "

However, Li Aike under market-oriented, SAP's progress can not seem to satisfy the wishes of the board of directors. For SAP itself, the biggest challenge is a large enterprise market is saturated large enterprises market share in the guard, based on how quickly tap SMB market is the key. Although SAP has introduced solutions for SMEs, but SMEs market is still developing slowly.

Instead, SAP rival Oracle progressing rapidly, now its strength in the enterprise software has created a serious threat to SAP. The world's No. 2 software company, is the largest provider of Oracle database software in the past five years is a chain takeover battle, spent more than 340 million acquisition of 56 U.S. companies rapidly increase their profits nearly doubled.

Li Yike departure, its co-CEO again there is a product development leader, Chief Technology Officer Vishal Sikka also join the Executive Committee. In the industry believe that this is a signal: the last time, SAP attention to the market, but product innovation can not be satisfactory.

According to reports, SAP co-founder Hasso Plattner in addition to remain as chairman, will "continue to provide leadership for the company's new technology and product development proposals." Plattner also said the new company's executive committee will constitute a "better coordination of product innovation and consumer demand."

Li Yike leave doubts SAP China

For SAP China, SAP was not positive before and after a loss to explain China's hearsay, but stressed that China is only part of multinational SAP, SAP Asia Pacific and Japan region will be as a whole, can not give separate data for China.

Zhang Liesheng has also insisted that China has become the SAP world's third largest market potential, Li Yike, etc. are also very value management in China. For the trade rumors about leaving, Zhang Liesheng laughed, saying that SAP China, no major changes in staffing arrangements.

Zhang Liesheng was in May 2008 from IBM airborne as president of SAP China, in office less than 2 months on with their superiors-SAP North Asia, Ji Ping, president of Union (Mark Gibbs) co-directed "Jiuhuashanzhuang executives cleaning door" thus establish a "civil war master", "senior sweeper" personal reputation.

涓?湞澶╁瓙涓?湞鑷? If Zhang Liesheng of lung power, the support from the Li Yike, then with the departure of Li Yike, SAP China, the situation will become complicated and confusing.


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