Feeds

HP strikes back at Oracle with SAP CEO pick

Apotheker more Hurd than Hurd

New hybrid storage solutions

Comment Let's see, now. If I was a big Oracle partner and I really wanted Larry Ellison to go ballistic, what's the worse thing I could do?

How about elect the former CEO of SAP – one of his most hated rivals – as my CEO?

Well, that's what Hewlett-Packard has done in what looks an awful lot like a strike back at Ellison after he attacked the HP board for booting his friend and tennis buddy Mark Hurd. In a final fuck-you to HP's board, Ellison hired Hurd at Oracle.

Such a strike must be the only reason HP has put Leo Apotheker at the helm, because the clutch of clichéd reasons the company has given for Apotheker's recruitment just don't stand up.

According to HP, Apotheker is a "strategic thinker" with "global experience", "proven operational discipline", and a "strong track record of driving technological innovation." The world's second largest PC company said Apotheker helped SAP to 18 consecutive quarters of double-digit revenue growth between 2004 and 2009.

Apotheker is "operational" all right, and in the post-Fiorina era, HP certainly wants operational types in the CEO role – i.e. people unlikely to hog a stage with Gwen Stefani in Las Vegas.

Before he ascended to the top of SAP, Apotheker served as president of customer solutions and operations at the company. A 20-year SAP veteran, he joined as CEO of SAP France in 1988, and he was a field man managing partners and customers.

A remarkable leader he's not, and he's certainly no visionary. He shares responsibly for the fact that SAP is now banging its head on the inside walls of the enterprise IT cage, with no real clue how to get out.

And he wasn't CEO of SAP for very long. Apotheker only became SAP's CEO in May 2009, having taken over as deputy CEO in April 2007 and then as co-CEO with Henning Kagermann in April 2008.

When Kagermann went Apotheker took on the role full time, but by February 2010 things hadn't gone as expected and there was a "mutual agreement" with the board that his contract would not be renewed. He was unwilling to again share the CEO's position, and SAP promptly reverted to co-CEO leadership under former head of field organization Bill McDermott and product development head Jim Hagemann Snabe.

Strike one: Apotheker lacks solo-top leadership experience.

During his time near the top, Apotheker - along with the rest of SAP's conservative leadership - failed to predict the transition to software delivered online and the swing away from monolithic suites of software running on the server sweeping through SAP's customer base.

And the company ended up losing business to Salesforce.com.

Customers not first

Apotheker talked of putting customers first, but SAP's true loyalty was to its systems integrators and consultants. These companies make a lot of money customizing the notoriously complicated set of modules that comprise SAP, tailoring it to customers' needs. Often, if you hear of an ERP implementation going awry, it's an SAP implementation. And by "awry," we mean late and over budget – and quite probably scrapped.

SAP didn't champion customers, it squeezed them. During Apotheker's co-CEO tenure, SAP raised its software maintenance and support fees, ignoring the software-as-a-service revolution.

In 2008, SAP introduced an increase in the basic software support package from 17 per cent of a customer's standard licensee fee to 22 per cent - a move that sparked a revolt and went on to hurt SAP financially.

Secure remote control for conventional and virtual desktops

More from The Register

next story
'Windows 9' LEAK: Microsoft's playing catchup with Linux
Multiple desktops and live tiles in restored Start button star in new vids
Not appy with your Chromebook? Well now it can run Android apps
Google offers beta of tricky OS-inside-OS tech
New 'Cosmos' browser surfs the net by TXT alone
No data plan? No WiFi? No worries ... except sluggish download speed
Greater dev access to iOS 8 will put us AT RISK from HACKERS
Knocking holes in Apple's walled garden could backfire, says securo-chap
NHS grows a NoSQL backbone and rips out its Oracle Spine
Open source? In the government? Ha ha! What, wait ...?
Google extends app refund window to two hours
You now have 120 minutes to finish that game instead of 15
Intel: Hey, enterprises, drop everything and DO HADOOP
Big Data analytics projected to run on more servers than any other app
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.