SAP has announced that Shawn Price, President of SuccessFactors, will be promoted to a new position heading SAP Cloud after Bob Calderoni resigned. The position – President, Global Cloud & Line of Business – comes amid a reshuffle that will see Shawn Price run the current SAP Cloud business units along with a number of on-premise line of businesses. He will report to Rob Enslin.
What does this mean for SAP?
I believe that for SAP this is going to even further accelerate SAP’s move to the Cloud. Certainly SAP on-premise customers should be mindful about SAP’s future investment in on-premise and overall direction. Or maybe that should be limited investment in on-premise. But should customers be concerned? Well, if you want to remain on-premise in the long-term then very much so. If you are planning on revamping your enterprise software investment then this should be seen as another reason to consider the Cloud sooner rather than later.
And what about SuccessFactors?
SuccessFactors will now be looking for a new President and Price’s will be tough shoes to fill. Executives Dmitri Krakovsky and Thomas Otter would make good appointments but this may be shifting the problem elsewhere as they both play critical roles within SuccessFactors core product team. David Ludlow has been the face of HCM at SAP for some time, is well known within the industry, and has an outside chance of taking the role. Unlike Price’s appointment, which came at a time when Dalgaard had departed SAP, outside cloud leadership is not so important now that SAP and SuccessFactors have merged the cloud and on-premise HCM businesses. However, Shawn is likely to keep a strong focus on HCM as the forerunner of SAP’s cloud initiative and could retain his role as part of the broader Global Cloud position. Overall there should be little change as SuccessFactors’ product direction is determined largely by Krakovsky and his influence will continue to be present.
All change at SAP Cloud again, but a great move by SAP. However, will Shawn last longer than his predecessors? My belief is that he will; both Lars Dalgaard and Bob Calderoni were coming into this role from the outside and Price has already established himself in SAP/SuccessFactors at an executive level prior to this appointment and should already have an understanding of the executive mechanisms of SAP. But whatever reasons led to the departure of Dalgaard and Calderoni – and these have not and probably will not be fully disclosed – may still linger and one hopes that there is more stability in the Cloud business going forward.