Apr
15
2020
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ServiceNow pledges no layoffs in 2020

You don’t need your PhD in economics to know the economy is in rough shape right now due to the impact of COVID-19, but ServiceNow today pledged that it would not lay off a single employee in 2020 — and in fact, it’s hiring.

While Salesforce’s Marc Benioff pledged no significant layoffs for 90 days last month, and asked other company leaders to do the same, ServiceNow did them one better by promising to keep every employee for at least the rest of the year.

Bill McDermott, who came on as CEO at the end of last year after nine years as CEO at SAP, said that he wanted to keep his employees concentrating on the job at hand without being concerned about a potential layoff should things get a little tighter for the company.

“We want our employees focused on supporting our customers, not worried about their own jobs,” he said in a statement.

In addition, the company plans to fill 1,000 jobs worldwide, as well as hire 360 college students as interns this summer, as they continue to expand their workforce, when many industries and fellow tech companies are laying off or furloughing employees.

The company also announced that it is taking part in a program called People+Work Connect, with Accenture, Lincoln Financial Group and Verizon (the owner of this publication). This program acts as an online employer to employer clearing house for these companies to hire employees laid off or furloughed by other companies. The company plans to post 800 jobs through this channel.

Nov
18
2019
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Bill McDermott takes reins as ServiceNow CEO sooner than expected with new CFO

It was pretty unexpected when former SAP CEO Bill McDermott announced he was stepping down in October after a decade in the position. He indicated at that point he would stay until the end of the year to help with the transition to new leadership — then ServiceNow hired him to be its CEO just a few weeks later. Today, the company announced, McDermott has taken over his duties earlier than expected.

The company also announced it has filled its vacant CFO job, hiring Gina Mastantuono, who previously served in similar roles at Ingram Micro and Revlon, and has more than 20 years experience in finance.

It was a game of CEO musical chairs when ServiceNow announced on October 22 that former CEO John Donahoe was leaving to be CEO at Nike, and it would be bringing in McDermott to replace him.

Ray Wang, founder and principal analyst at Constellation Research says all of these changes had a cascading impact, and once Donahoe decided to leave early, everything else happened much faster than planned. “The original plan was to have a transition in January, however there was an urgency on Donahoe’s side to get the Nike thing wrapped up. One of the key reasons to do this early [from a business perspective] is to get the sales team and sales kickoff aligned for 2020. The other reason is providing the same smooth transition for SAP’s co-CEOs Jennifer Moran and Christian Klein,” Wang told TechCrunch.

It is a time of transition for ServiceNow, having to replace both a CFO and CEO, but they landed two experienced pros, who should help continue to guide the company into the future. The company has stated that it hopes to eventually achieve a $10 billion revenue goal under the new leadership team.

As I wrote in a piece analyzing his move to ServiceNow, McDermott seemed to fully embrace that challenge, even though he has a ways to go:

McDermott has his work cut out for him. The company’s 2018 revenue was $2.6 billion. Still, he fully embraced the $10 billion challenge. “Well let me answer that very simply, I completely stand by [the $10 billion goal], and I’m looking forward to achieving it,” he said with bravado during today’s call.

Mastantuono has a lot in common with McDermott, who also came from a much larger organization to help lead ServiceNow to the next level. At her previous position at Ingram Micro she led finance for a company with $50 billion in revenue and more than 200,000 customers.

Mastantuono sees a company with great potential as she takes over to guide the financial side of the organization. “ServiceNow is highly regarded by its customers and has tremendous momentum and opportunity to enable digital transformation and help make work, work better for people,” she said in a statement.

The new leadership duo has its work cut out for it, but it’s a company with lots of room for growth. It will now be up to McDermott and Mastantuono to lead it into that next phase.

Oct
23
2019
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Bill McDermott aims to grow ServiceNow like he did SAP

Bill McDermott has landed. Two weeks ago, he stepped down as CEO at SAP after a decade leading the company. Yesterday, ServiceNow announced that he will be its new CEO.

It’s unclear how quickly the move came together but the plan for him is clear: to scale revenue like he did in his last job.

Commenting during the company’s earning’s call today, outgoing CEO John Donahoe said that McDermott met all of the board’s criteria for its next leader. This includes the ability to expand globally, expand the markets it serves and finally scale the go-to-market organization internally, all in the service of building toward a $10 billion revenue goal. He believes McDermott checks all those boxes.

McDermott has his work cut out for him. The company’s 2018 revenue was $2.6 billion. Still, he fully embraced the $10 billion challenge. “Well let me answer that very simply, I completely stand by [the $10 billion goal], and I’m looking forward to achieving it,” he said with bravado during today’s call.

It’s worth noting that as the company strives to reach that lofty revenue goal in the coming years, it will be doing with a new CEO in McDermott, as well as a new CFO. The company is in the midst of a search to fill that key position, as well.

McDermott has been here before though. He points out that in the decade he was at SAP, under his leadership the company moved the market cap from $39 billion to $163 billion. Today, ServiceNow’s market cap is similar to when McDermott started at SAP at a little over $41 billion.

He also recognizes that this is going to be a new challenge. “I’ve seen a lot of different business models, and [SAP has] a very different business model than ServiceNow. This is a pure play cloud,” he said. That means as a leader, he says that has to think about product changes differently, how they fit in the overall platform, while maintaining simplicity and keeping the developer community in mind.

Ray Wang, founder and principal analyst at Constellation Research said that ServiceNow is at a point where it needs an enterprise-class CEO who understands tech, partnerships, systems integrators and real enterprise sales and marketing — and McDermott brings all of that to his new employer.

Oct
22
2019
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Former SAP CEO Bill McDermott taking over as ServiceNow CEO

When Bill McDermott announced he was stepping down as CEO at SAP a couple of weeks ago, it certainly felt like a curious move — but he landed on his feet pretty quickly. ServiceNow announced he would be taking over as CEO there. The transition will take place at year-end.

If you’re wondering what happened to the current ServiceNow CEO, John Donahoe, well he landed a job as CEO at Nike. The CEO carousel goes round and round (and painted ponies go up and down).

Jeff Miller, lead independent director on the ServiceNow board of directors, was “thrilled” to have McDermott fill the void left by Donahoe’s departure. “His global experience and proven track record will provide for a smooth transition and continued strong leadership. Bill will further enhance ServiceNow’s momentum and reputation as a digital workflows leader committed to customer success, and as a preferred strategic partner enabling enterprise digital transformation,” Miller said in a statement.

Jennifer Morgan and Christian Klein replaced McDermott as co-CEOs at SAP, and during the announcement, McDermott indicated he would stay until the end of the year to help with the transition. After that, no vacation for McDermott, who will apparently start at ServiceNow after his obligations at SAP end.

As Frederic Lardinois wrote regarding McDermott’s resignation:

I last spoke to McDermott about a month ago, during a fireside chat at our TechCrunch Sessions: Enterprise event. At the time, I didn’t come away with the impression that this was a CEO on his way out (though McDermott reminded me that if he had already made his decision a month ago, he probably wouldn’t have given it away).

ServiceNow is a much different company than SAP. SAP was founded in 1972 and was a traditional on-premises software company. ServiceNow was founded in 2004 and was born as a SaaS company. While McDermott was part of a transition from a traditional, on-premises enterprise software company to the cloud, working at ServiceNow he will be leading a much smaller organization. Published estimates have SAP at around 100,000 employees, while ServiceNow now has around 10,000.

It’s worth noting that the company made the announcement after the market closed and it announced its latest quarterly earnings. Wall Street did not appear to the like news, as the stock was down $13.34, or 5.84%, in early after-hours trading.

Oct
11
2019
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Why it might have been time for new leadership at SAP

SAP CEO Bill McDermott announced he was stepping down last night after a decade at the helm in an announcement that shocked many. It’s always tough to measure the performance of an enterprise leader when he or she leaves. Some people look at stock price over their tenure. Some at culture. Some at the acquisitions made. Whatever the measure, it will be up to the new co-CEOs Jennifer Morgan and Christian Klein to put their own mark on the company.

What form that will take remains to be seen. McDermott’s tenure ended without much warning, but it also happened against a wider backdrop that includes other top executives and board members leaving the company over the last year, an activist investor coming on board and some controversial licensing changes in recent years.

Why now?

The timing certainly felt sudden. McDermott, who was interviewed at TechCrunch Sessions: Enterprise last month sounded more like a man who was fully engaged in the job, not one ready to leave, but a month later he’s gone.

But as McDermott told our own Frederic Lardinois last night, after 10 years, it seemed like the right time to leave. “The consensus was 10 years is about the right amount of time for a CEO because you’ve accomplished a lot of things if you did the job well, but you certainly didn’t stay too long. And if you did really well, you had a fantastic success plan,” he said in the interview.

There is no reason to doubt that, but you should at least look at context and get a sense of what has been going in the company. As the new co-CEOs take over for McDermott, several other executives including SAP SuccessFactors COO Brigette McInnis-Day, Robert Enslin, president of its cloud business and a board member, CTO Björn Goerke and Bernd Leukert, a member of the executive board have all left this year.

Oct
10
2019
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SAP’s Bill McDermott on stepping down as CEO

SAP’s CEO Bill McDermott today announced that he wouldn’t seek to renew his contract for the next year and would step down immediately after nine years at the helm of the German enterprise giant.

Shortly after the announcement, I talked to McDermott, as well as SAP’s new co-CEOs Jennifer Morgan and Christian Klein. During the call, McDermott stressed that his decision to step down was very much a personal one, and that while he’s not ready to retire just yet, he simply believes that now is the right time for him to pass on the reins of the company.

To say that today’s news came as a surprise is a bit of an understatement, but it seems like it’s something McDermott has been thinking about for a while. But after talking to McDermott, Morgan and Klein, I can’t help but think that the actual decision came rather recently.

I last spoke to McDermott about a month ago, during a fireside chat at our TechCrunch Sessions: Enterprise event. At the time, I didn’t come away with the impression that this was a CEO on his way out (though McDermott reminded me that if he had already made his decision a month ago, he probably wouldn’t have given it away).

Keeping an Enterprise Behemoth on Course with Bill McDermott SAPDSC00240

“I’m not afraid to make decisions. That’s one of the things I’m known for,” he told me when I asked him about how the process unfolded. “This one, I did a lot of deep soul searching. I really did think about it very heavily — and I know that it’s the right time and that’s why I’m so happy. When you can make decisions from a position of strength, you’re always happy.”

He also noted that he has been with SAP for 17 years, with almost 10 years as CEO, and that he recently spent some time talking to fellow high-level CEOs.

“The consensus was 10 years is about the right amount of time for a CEO because you’ve accomplished a lot of things if you did the job well, but you certainly didn’t stay too long. And if you did really well, you had a fantastic success plan,” he said.

In “the recent past,” McDermott met with SAP chairman and co-founder Hasso Plattner to explain to him that he wouldn’t renew his contract. According to McDermott, both of them agreed that the company is currently at “maximum strength” and that this would be the best time to put the succession plan into action.

SAP's new co-CEO Jennifer Morgan.

SAP co-CEO Jennifer Morgan

“With the continuity of Jennifer and Christian obviously already serving on the board and doing an unbelievable job, we said let’s control our destiny. I’m not going to renew, and these are the two best people for the job without question. Then they’ll get a chance to go to Capital Markets Day [in November]. Set that next phase of our growth story. Kick off the New Year — and do so with a clean slate and a clean run to the finish line.

“Very rarely do CEOs get the joy of handing over a company at maximum strength. And today is a great day for SAP. It’s a great day for me personally and Hasso Plattner, the chairman and [co-]founder of SAP. And also — and most importantly — a great day for Jennifer Morgan and Christian Klein.”

Don’t expect McDermott to just fade into the background, though, now that he is leaving SAP. If you’ve ever met or seen McDermott speak, you know that he’s unlikely to simply retire. “I’m busy. I’m passionate and I’m just getting warmed up,” he said.

As for the new leadership, Morgan and Klein noted that they hadn’t had a lot of time to think about the strategy going forward. Both previously held executive positions in the company and served on SAP’s board together for the last few years. For now, it seems, they are planning to continue on a similar path as McDermott.

“We’re excited about creating a renewed focus on the engineering DNA of SAP, combining the amazing strength and heritage of SAP — and many of the folks who have built the products that so many customers around the world run today — with a new DNA that’s come in from many of the cloud acquisitions that we’ve made,” Morgan said, noting that both she and Klein spent a lot of time over the last few months bringing their teams together in new ways. “So I think for us, that tapestry of talent and that real sense of urgency and support of our customers and innovation is top of mind for us.”

SAP co-CEO Christian Klein

SAP co-CEO Christian Klein

Klein also stressed that he believes SAP’s current strategy is the right one. “We had unbelievable deals again in Q3 where we actually combined our latest innovations — where we combined Qualtrics with SuccessFactors with S/4 [Hana] to drive unbelievable business value for our customers. This is the way to go. The business case is there. I see a huge shift now towards S/4, and the core and business case is there, supporting new business models, driving automation, steering the company in real time. All of these assets are now coming together with our great cloud assets, so for me, the strategy works.”

Having co-CEOs can be a recipe for conflict, but McDermott’s time as CEO also started out as co-CEO, so the company does have some experience there. Morgan and Klein noted that they worked together on the SAP board before and know each other quite well.

What’s next for the new CEOs? “There has to be a huge focus on Q4,” Klein said. “And then, of course, we will continue like we did in the past. I’ve known Jen now for quite a while — there was a lot of trust there in the past and I’m really now excited to really move forward together with her and driving huge business outcomes for our customers. And let’s not forget our employees. Our employee morale is at an all-time high. And we know how important that is to our employees. We definitely want that to continue.”

It’s hard to imagine SAP with McDermott, but we’ve clearly not seen the last of him yet. I wouldn’t be surprised if we saw him pop up as the CEO of another company soon.

Below is my interview with McDermott from TechCrunch Sessions: Enterprise.

Oct
10
2019
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Bill McDermott steps down as SAP’s CEO

SAP today announced that Bill McDermott, its CEO for the last nine years, is stepping down immediately. The company says he decided not to renew his contract. SAP Executive Board members Jennifer Morgan and Christian Klein have been appointed co-CEOs.

McDermott, who started his business career as a deli owner in Amityville, Long Island and recently spoke at our TechCrunch Sessions: Enterprise event, joined SAP in 2002 as the head of SAP North America. He became co-CEO in 2008 and the company’s sole CEO in 2014, making him the first American to take on this role at the German enterprise giant. Under his guidance, SAP’s annual revenue and stock price continued to increase. He’ll remain with the company in an advisory role for the next two months.

It’s unclear why McDermott decided to step down at this point. Activist investor Elliott Management recently disclosed a $1.35 billion stake in SAP, but when asked for a comment about today’s news, an Elliott spokesperson told us that it didn’t have any “immediate comment.”

It’s also worth noting that the company saw a number of defections among its executive ranks in recent months, with both SAP SuccessFactors COO Brigette McInnis-Day and Robert Enslin, the president of its cloud business and a board member, leaving the company for Google Cloud.

Keeping an Enterprise Behemoth on Course with Bill McDermott SAPDSC00248

“SAP would not be what it is today without Bill McDermott,” said Plattner in today’s announcement. “Bill made invaluable contributions to this company and he was a main driver of SAP’s transition to the cloud, which will fuel our growth for many years to come. We thank him for everything he has done for SAP. We also congratulate Jennifer and Christian for this opportunity to build on the strong foundation we have for the future of SAP. Bill and I made the decision over a year ago to expand Jennifer and Christian’s roles as part of a long-term process to develop them as our next generation of leaders. We are confident in their vision and capabilities as we take SAP to its next phase of growth and innovation.”

McDermott’s biggest bet in recent years came with the acquisition of Qualtrics for $8 billion. At our event last month, McDermott compared this acquisition to Apple’s acquisition of Next and Facebook’s acquisition of Instagram. “Qualtrics is to SAP what those M&A moves were to those wonderful companies,” he said. Under his leadership, SAP also acquired corporate expense and travel management company Concur for $8.3 billion and SuccessFactors for $3.4 billion.

“Now is the moment for everyone to begin an exciting new chapter, and I am confident that Jennifer and Christian will do an outstanding job,” McDermott said in today’s announcement. “I look forward to supporting them as they finish 2019 and lay the foundation for 2020 and beyond. To every customer, partner, shareholder and colleague who invested their trust in SAP, I can only relay my heartfelt gratitude and enduring respect.”

Updating…

Aug
27
2019
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SAP covers hot topics at TechCrunch’s Sept. 5 Enterprise show in SF

You can’t talk enterprise software without talking SAP, one of the giants in a $500 billion industry. And not only will SAP’s CEO Bill McDermott share insights at TC Sessions: Enterprise 2019 on September 5, but the company will also sponsor two breakout sessions.

The editors will sit down with McDermott and talk about SAP’s quick growth due, in part, to several $1 billion-plus acquisitions. We’re also curious to hear about his approach to acquisitions and his strategy for growing the company in a quickly changing market. No doubt he’ll weigh in on the state of enterprise software in general, too.

Now about those breakout sessions. They run in parallel to our Main Stage set and we have a total of two do-not-miss presentations for you to enjoy. On September 5, you’ll enjoy three breakout sessions –two from SAP and one from Pricefx. You can check out the agenda for TC Sessions: Enterprise, but we want to shine the light on the sponsored sessions to give you a sense of the quality content you can expect:

  • Innovating for a Super-Human Future 
    Martin Wezowski (SAP)
    We talk about change, but what are the mechanics and the dynamics behind it? And how fast is it? The noted futurist will discuss what it means to be an innovator is transforming faster than before, and this transformation is deeply rooted in the challenges and promises between cutting-edge tech and humanism. The symbiosis between human creativity & empathy and machine intelligence opens new worlds for our imagination in a time when “now” has never been so temporary, and helps us answer the question: “What is human, and what is work in a superhuman future?” (Sponsored by SAP)
  • Pricing from Day One
    Madhavan Ramanujam (Simon-Kucher & Partners, Gabriel Smith) and Darius Jakubik (Pricefx) A key ingredient distinguishing top performing companies is clear focus on price. To maximize revenue and profits, pricing should be a C-level / boardroom consideration. To optimize pricing, you should think about price when determining which products and features to bring to market; put the people, process and technology in place to optimize it; and maintain flexibility to adjust strategy and tactics to respond to changing markets. By doing so, companies unlock the single greatest profit lever that exists. (Sponsored by Pricefx)
  • Cracking the Code: From Startup to Scaleup in Enterprise Software 
    Ram Jambunathan (SAP.iO), Lonnie Rae Kurlander (Medal), Caitlin MacGregor (Plum) and Dimitri Sirota (BigID) The startup journey is hard. Data shows that 70% of upstart tech companies fail, while only 1% of these startups will go on to gain unicorn status. Success in enterprise software often requires deep industry experience, strong networks, brutally efficient execution and a bit of luck. This panel brings together three successful SAP.iO Fund-backed enterprise startups for an open discussion on lessons learned, challenges of scaling and why the right strategic investors or partners can be beneficial even at early stages. (Sponsored by SAP)

TC Sessions: Enterprise 2019 takes place in San Francisco on September 5. It’s a jam-packed day (agenda here) filled with interviews, panel discussions and breakouts — from some of the top minds in enterprise software. Buy your ticket today and remember: You receive a free Expo-only pass to TechCrunch Disrupt SF 2019 for every ticket you buy.

Aug
19
2019
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The five great reasons to attend TechCrunch’s Enterprise show Sept. 5 in SF

The vast enterprise tech category is Silicon Valley’s richest, and today it’s poised to change faster than ever before. That’s probably the biggest reason to come to TechCrunch’s first-ever show focused entirely on enterprise. But here are five more reasons to commit to joining TechCrunch’s editors on September 5 at San Francisco’s Yerba Buena Center for an outstanding day (agenda here) addressing the tech tsunami sweeping through enterprise. 

No. 1: Artificial intelligence
At once the most consequential and most hyped technology, no one doubts that AI will change business software and increase productivity like few, if any, technologies before it. To peek ahead into that future, TechCrunch will interview Andrew Ng, arguably the world’s most experienced AI practitioner at huge companies (Baidu, Google) as well as at startups. AI will be a theme across every session, but we’ll address it again head-on in a panel with investor Jocelyn Goldfein (Zetta), founder Bindu Reddy (Reality Engines) and executive John Ball (Salesforce / Einstein). 

No. 2: Data, the cloud and Kubernetes
If AI is at the dawn of tomorrow, cloud transformation is the high noon of today. Indeed, 90% of the world’s data was created in the past two years, and no enterprise can keep its data hoard on-prem forever. Azure’s CTO
Mark Russinovitch will discuss Microsft’s vision for the cloud. Leaders in the open-source Kubernetes revolution — Joe Beda (VMware), Aparna Sinha (Google) and others — will dig into what Kubernetes means to companies making the move to cloud. And last, there is the question of how to find signal in all the data — which will bring three visionary founders to the stage: Benoit Dageville (Snowflake), Ali Ghodsi (Databricks) and Murli Thirumale (Portworx). 

No. 3: Everything else on the main stage!
Let’s start with a fireside chat with
SAP CEO Bill McDermott and Qualtrics Chief Experience Officer Julie Larson-Green. We have top investors talking where they are making their bets, and security experts talking data and privacy. And then there is quantum computing, the technology revolution waiting on the other side of AI: Jay Gambetta, the principal theoretical scientist behind IBM’s quantum computing effort, Jim Clarke, the director of quantum hardware at Intel Labs and Krysta Svore, who leads Microsoft’s quantum effort.

All told, there are 21 programming sessions.

No. 4: Network and get your questions answered
There will be two Q&A breakout sessions with top enterprise investors; this is for founders (and anyone else) to query investors directly. Plus, TechCrunch’s unbeatable CrunchMatch app makes it really easy to set up meetings with the other attendees, an
incredible array of folks, plus the 20 early-stage startups exhibiting on the expo floor.

No. 5: SAP
Enterprise giant SAP is our sponsor for the show, and they are not only bringing a squad of top executives, they are producing four parallel track sessions, featuring key SAP Chief Innovation Officer
Max Wessel, SAP Chief Designer and Futurist Martin Wezowski and SAP.IO’s managing director Ram Jambunathan (SAP.iO), in sessions including how to scale-up an enterprise startup, how startups win large enterprise customers, and what the enterprise future looks like.

Check out the complete agenda. Don’t miss this show! This line-up is a view into the future like none other. 

Grab your $349 tickets today, and don’t wait til the day of to book because prices go up at the door!

We still have two Startup Demo Tables left. Each table comes with four tickets and a prime location to demo your startup on the expo floor. Book your demo table now before they’re all gone!

Aug
14
2019
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Every TC Sessions: Enterprise 2019 ticket includes a free pass to Disrupt SF

Shout out to all the savvy enterprise software startuppers. Here’s a quick, two-part money-saving reminder. Part one: TC Sessions: Enterprise 2019 is right around the corner on September 5, and you have only two days left to buy an early-bird ticket and save yourself $100. Part two: for every Session ticket you buy, you get one free Expo-only pass to TechCrunch Disrupt SF 2019.

Save money and increase your ROI by completing one simple task: buy your early-bird ticket today.

About 1,000 members of enterprise software’s powerhouse community will join us for a full day dedicated to exploring the current and future state of enterprise software. It’s certainly tech’s 800-pound gorilla — a $500 billion industry. Some of the biggest names and brightest minds will be on hand to discuss critical issues all players face — from early-stage startups to multinational conglomerates.

The day’s agenda features panel discussions, main-stage talks, break-out sessions and speaker Q&As on hot topics including intelligent marketing automation, the cloud, data security, AI and quantum computing, just to name a few. You’ll hear from people like SAP CEO Bill McDermott; Aaron Levie, Box co-founder; Jim Clarke, director of Quantum Hardware at Intel and many, many more.

Customer experience is always a hot topic, so be sure to catch this main-stage panel discussion with Amit Ahuja (Adobe), Julie Larson-Green (Qualtrics) and Peter Reinhardt (Segment):

The Trials and Tribulations of Experience Management: As companies gather more data about their customers and employees, it should theoretically improve their experience, but myriad challenges face companies as they try to pull together information from a variety of vendors across disparate systems, both in the cloud and on prem. How do you pull together a coherent picture of your customers, while respecting their privacy and overcoming the technical challenges?

TC Sessions: Enterprise 2019 takes place in San Francisco on September 5. Take advantage of this two-part money-saving opportunity. Buy your early-bird ticket by August 16 at 11:59 p.m. (PT) to save $100. And score a free Expo-only pass to TechCrunch Disrupt SF 2019 for every ticket you buy. We can’t wait to see you in September!

Interested in sponsoring TC Sessions: Enterprise? Fill out this form and a member of our sales team will contact you.

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