TomorrowNow resignations point to possible sale
By Miya Knights,
SAP late yesterday issued a statement saying the chief executive and other management team members of its US support subsidiary, TomorrowNow have "chosen to resign".
It said TomorrowNow chief, Andrew Nelson and several members of his senior management team will leave the company, while it also considers several options for the future of the support business, including its possible sale.
But SAP added that Mark White, who was appointed in July 2007 as executive chairman of TomorrowNow, would continue in that role.
White said in the statement that meeting obligations to existing TomorrowNow customers and supporting them through this management transition would now be SAP's main focus.
"Over the next days, we will be communicating with TomorrowNow customers about these changes and our plans to support them going forward," he said.
He added that programmes are currently being put in place to ensure the continued delivery of the subsidiary's provision of maintenance and support for customers of Oracle's PeopleSoft, JD Edwards and Siebel software as well as the retention of key support and middle management personnel.
The resignations and possible sale come as TomorrowNow is currently embroiled in an ongoing lawsuit brought by Oracle earlier this year. The suit alleges the support company used logins "stolen" from high profile customers to fraudulently access and download information from the database and software giant's support website for competitive gain.
Most recently, Oracle rejected a call from SAP for an early settlement of the lawsuit, after the German software maker admitted to discovering some "inappropriate downloads" in the course of investigating the Oracle allegations.
SAP had made no further comment on its announced management restructuring plans at time of writing, nor had Oracle issued any reaction in response.
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