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SAP names McDermott CEO: Now the heavy lifting begins

21/05/2014 by


SAP on Tuesday named Bill McDermott sole CEO of the enterprise applications giant. McDermott is the first American to run the company.

McDermott, a co-CEO since 2010 alongside Jim Hagerman Snabe, takes over amid a series of inflection points for SAP. To wit:

  • SAP is transitioning to a cloud model.
  • There’s turnover among management as the company evaluates various positions.
  • SAP has to grow its HANA and cloud subscriptions at a fast enough rate to offset slowing application licensing over time. Does the suite win in the cloud too? Is HANA in the cloud priced right?
  • And SAP has to convince customers that it’s an innovation partner in the long run as competition escalates in everything from CRM to human capital management to its core ERP.

The other wrinkle is that McDermott is from the sales side of SAP and has to win over the engineering crew based in Germany. SAP’s tech lead, Vishal Sikka, recently left the company and Shawn Price, president of SAP’s cloud and line of business sales, also departed. In addition, SAP is re-balancing its workforce as it transitions to be more of a cloud player.

McDermott’s big pitch to customers about those aforementioned inflection points begins at SAP’s Sapphire conference in Orlando at the beginning of June.

For now, analysts are seeing SAP’s moving parts as a reason for caution. However, McDermott’s appointment as sole CEO may also indicate that SAP has become more global.

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Montash is a multi-award winning, global IT recruitment firm. Specialising in permanent and contract positions across mid-senior appointments which cover a wide range of industry sectors and IT functions, including:

ERP, BI & Data, Information Security, IT Architecture & Strategy, Scientific Technologies, Demand IT and Business Engagement, Digital and E-commerce, Infrastructure and Service Delivery, Project and Programme Delivery.

With offices based in London, Montash has completed assignments in over 30 countries and has appointed technical professionals from board level to senior and mid-management in permanent and contract roles.

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