SAP Cuts Its Losses

Heads roll at TomorrowNow as SAP tries to reassure customers in the aftermath of Oracle's suit.

The other shoe has dropped in the ongoing legal battle between software applications giant SAP and Oracle, its fierce competitor.

SAP announced Nov. 19 that Andrew Nelson, the CEO of its embattled subsidiary, TomorrowNow, has chosen to resign, along with several other senior managers.

SAP also announced that it is considering several options for the subsidiary, including a possible sale.

TomorrowNow is a services company specializing in PeopleSoft that was acquired by SAP as a response to Oracles acquisition of popular ERP (enterprise resource planning) vendor PeopleSoft.

SAP said that it will ensure that current obligations to customers are met.

This all results from a lawsuit filed by Oracle on March 22, 2007, against SAP, charging the Walldorf, Germany, company with massive fraud and patent infringement.

In July, SAP admitted to charges leveled against it by Oracle and admitted that employees at TomorrowNow had downloaded customer support files to which they were not entitled.


Read more here about Oracles suit against SAP.

Henning Kagermann, CEO of SAP, had hinted at the time that heads would roll, but left that decision to newly appointed TomorrowNow Executive Chairman Mark White.

"We will be communicating with TomorrowNow customers about these changes and our plans to support them going forward," said White in a statement.


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