|
SAP User Group CEO Ousted Amid Controversy
|
| Written by Mel Duvall |
SAP’s largest user group has fired its chief executive, Steven Strout, amid a growing controversy over the software company’s decision to hike maintenance fees.
The America’s SAP Users’ Group, or ASUG, issued a statement saying that it had “released Strout from his duties.” Strout was named the organization's first full-time CEO 16 months ago.
In the statement ASUG chairperson Michael O’Dell denied the firing was directly related to growing complaints by SAP customers over the new maintenance fees. “The speculation in the market that this decision is somehow related to Enterprise Support is incorrect; ASUG remains committed to our participation in the SAP User Group Exeuctive Network (SUGEN) and to the Enterprise Support statement issued jointly by SAP and SUGEN,” O’Dell said in the statement.
In July SAP announced that it would eliminate its Standard Support offering and that current users would have to move to a more extensive Enterprise Support offering. Such a move meant that some customers would end up paying a maintenance fee of 22% of their licensed software, as opposed to the 17% fee paid on the lower priced Standard Support offering. The new fee structure is to be phased in, starting in January 2009.
A number of customers have expressed anger with the change, arguing they did not need the more extensive offering. SAP, in turn, has been trying to convince customers that they will ultimately benefit from the enhanced services.
While ASUG says Strout’s firing is not related to the fee-hike controversy, his dismissal is only likely to increase the pressure on SAP to rethink its maintenance fee changes.
For the record, here’s what ASUG had to say about Strout’s dismissal:
The Board of Directors of the Americas’ SAP Users’ Group (ASUG) announced this week that it is pursuing alternate leadership for the organization and has released Steve Strout from his duties as CEO. This change is effective immediately.
The Board acknowledges that both as a board member and as CEO for the last 16 months, Strout has been instrumental in moving ASUG forward in multiple areas. However, the Board does feel that it is necessary to pursue new executive leadership.
“This was an internal ASUG decision,” said Mike O’Dell, ASUG chairperson. “The Board is confident that this leadership direction will allow ASUG to maintain the momentum we have established over the past year and advance the mission of our organization. ASUG members can continue to expect the organization’s focus to remain on providing valuable programs to increase their knowledge and utilization of SAP products and services.”
Only registered users can write comments.
Please login or register. |
| [ Back ] |
