SAP's chief executive steps down

SAP has confirmed it's all change at the top as its chief executive (CEO) resigns and it reverts to a co-chief executive leadership model.

Leo Apotheker has stepped down from his role as CEO and member of the SAP Executive Board with immediate effect. He will be replaced in the hot seat by Bill McDermott, who currently heads up SAP's field organisation, and Jim Hagemann Snabe, who's in charge of product development.

"The new setup of the SAP Executive Board will allow SAP to better align

product innovation with customer needs," said Hasso Plattner, SAP co-founder and chairman of the SAP Supervisory Board, in a statement.

"The new leadership team will continue to drive forward SAP's strategy and focus on profitable growth, and will deliver its innovations in 2010 to expand SAP's leadership of the business software market."

Plattner will continue to play a strong advistory role for the company and Vishal Sikka, SAP's chief technology officer, now has a place on the executive board as part of the re-organisation.

"Apotheker's departure is not a surprise for those of us following the enterprise applications industry his contract was up for renewal and business was not so good," said Forrester analyst Paul Hamerman, in a blog post.

"...Just a week and a half prior to today's announcement, SAP reported Mr. Apotheker couldn't have been expected to perform miracles in a down economy, and can't be blamed for the false starts with Business ByDesign that he inherited. On the other hand, Mr. Apotheker's persona projected defensiveness rather than adopting a tone of reconciliation and accountability that would have helped heal the wounds with customers."

Despite difficult financial times, SAP can turn a corner, according to Hamerman.

"What SAP needs at this time is more charismatic and visionary leadership," he wrote.

"In this new configuration, McDermott will evidently provide the charisma and Snabe the vision for innovation. We shall see how well this works over the next year or so. For SAP to get back on track and reassert market leadership on all fronts, it may need to continue to look for a strong leader from the outside."