SAP Cloud Business Group President Robert Enslin has resigned to pursue another opportunity, the German software company disclosed today after U.S. markets closed. This is the latest in a growing list of executive changes at SAP, which is striving to accelerate its shift from traditional software sales toward subscription services.
In response to Enslin's departure, SAP says:
- SAP Executive Board Member Jennifer Morgan succeeds Enslin as president of the Cloud Business Group (CBG).
- SAP Executive Board Member Adaire Fox-Martin will take sole responsibility of Global Customer Operations (GCO) as president.
The leadership changes are effective immediately.
SAP Reorganization: Multiple Executive Departures
Multiple SAP executives have exited the company in recent weeks. Some of the positions apparently were eliminated amid a company reorganization. Among the notable exits: CTO Bjoern Goerke, and SAP HANA experts Thomas Jung and Rich Heilman.
SAP disclosed a restructuring plan in January 2019. The effort includes a $1 billion SAP charge related to 4,400 staff departures — though overall headcount will actually grow this year, CEO Bill McDermott has pointed out.
SAP has also doubled down on partner-led and partner-influenced sales, naming Karl Fahrbach as the company’s first chief partner officer in March 2019. A 13-year SAP veteran, he previously was COO for the company’s global partner organization.
SAP and Oracle: Cloud Services Revenue Challenges
SAP’s cloud-oriented revenues are growing — but perhaps not quickly enough. The evidence: The company’s legacy software license and support business still generates three-quarters of SAP’s revenue and the majority of profits, Reuters notes.
Meanwhile, SAP rival Oracle has experienced similar cloud services challenges. That company no longer discloses specific IaaS, PaaS and SaaS revenues each quarter. And former Oracle executive Thomas Kurian now leads Google Cloud Platform.
It’s safe to expect more details about the SAP partner and cloud strategy during SAP Sapphire Now 2019, a conference set for May in Orlando, Florida. Similarly, Oracle OpenWorld 2019 is scheduled for September in San Francisco.
Also, SAP's next quarterly earnings call is scheduled for April 24, 2019, according to the company's financial calendar.
