SAP announced that Bill McDermott, its CEO since 2010, is stepping down effective immediately. The move comes six months after SAP launched an internal review aimed at increasing profitability in its cloud applications business.
SAP is replacing McDermott with two senior executives from inside the company: Christian Klein, chief operating officer, and Jennifer Morgan, president of SAP’s Cloud Business Group, who will lead the company as co-CEOs.
SAP, founded in 1972, is in the midst of a transition from selling software that customers run in private data centers to selling subscription-based cloud services. In April, activist investor Elliott Management revealed it had taken a 1% stake (worth $1.3 billion) in SAP and said it supported the company’s plan to study its cloud business.
Under McDermott, SAP has made several deals to accelerate its shift to cloud software, including its $8 billion acquisition of Qualtrics, a maker of software for measuring the sentiments of customers and employees, last November.