Top TomorrowNow execs resign; SAP ponders next move

Andrew Nelson departs the SAP subsidiary

TomorrowNow CEO Andrew Nelson and several of his senior managers abruptly resigned from the SAP subsidiary on Monday.

TomorrowNow is a key player in a lawsuit levied against SAP by Oracle over alleged illegal software downloads of customer-support materials by workers at the subsidiary (http://www.oracle.com/sapsuit/complaint.pdf).

Oracle filed the lawsuit in March, and in July, SAP acknowledged that TomorrowNow employees made "inappropriate" downloads of fixes and support documents from Oracle's Web site (http://www.tnlawsuit.com/uploads/pdf/pressrelease/pressrelease_ResponsetoOracleComplaint.pdf). At the time, SAP contended that the Oracle data did not leave its subsidiary's separate IT systems.

TomorrowNow provides services-based support and maintenance for PeopleSoft, Siebel and J.D. Edwards applications, each of which is owned by Oracle. SAP acquired TomorrowNow in January 2005.

In a statement issued today, SAP said that it is currently "considering several options" for the future of its TomorrowNow business, including a potential sale.

Mark White, executive chairman of TomorrowNow, said the unit plans to explain the management shakeup and its upcoming strategy over the next few days. "SAP is prepared to manage through these changes to ensure that TomorrowNow's obligations to its current customers are met," he said.

The lawsuit is scheduled to be heard in February 2009.

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