Cloud Financial Officer

Once again, the question must be asked: Can SAP also do cloud computing? SAP is successful in the cloud business. But this answer is too general. What exactly is SAP's potential for success in cloud computing?

In the past, the most convincing cloud figures were regularly delivered by SAP CFO Luka Mucic. Sales grew regularly and some cloud figures from the balance sheet even surprised financial analysts. In contrast, the SAP community heard very little from board members Thomas Saueressig and Jürgen Müller regarding cloud applications and cloud technology.

Quite obviously, SAP has no cloud expertise in the scientific and technical area. The cloud apps purchased by Klein's predecessor Bill McDermott are proving to be mostly usable. Sufficient integration into the ERP core also satisfies many existing SAP customers. But while Luka Mucic's eyes regularly light up when he is allowed to report on SAP's cloud successes, his colleagues on the Executive Board, Saueressig and Müller, remain very unimpressive and mute.

SAP Executive Board member Luka Mucic can be called a cloud financial officer with good reason. With a deft hand, he has lifted many SAP revenues into the cloud over the past few years - a feat that Professor Hasso Plattner also mentions and lets stand in the room as a unique selling point. As if Luka Mucic had done nothing else in his 26 years at SAP.

"We are very grateful to Luka Mucic for his 26 years of service and commitment to the company"said Hasso Plattner, Chairman of the Supervisory Board of SAP. "During his tenure as CFO, SAP's cloud revenue grew from one billion euros to more than nine billion euros. Luka and his leadership team have been a cornerstone of SAP's successful cloud transformation. I am confident that they will continue to do an outstanding job during the coming transition period."

So Luka Mucic has been busy, multiplying SAP's cloud revenue. Not a word from Plattner about the impeccable financial management during the 2008 international financial crisis, the financial protection during SAP's reorganization, the management of the numerous acquisitions during Bill McDermott's reign, and the successful IPO of Qualtrics, as well as the outstanding collaboration at Sapphire Venture. And much more.

So the cloud financial officer is leaving the board: SAP announced in mid-March that the Supervisory Board and Luka Mucic had mutually agreed that he would leave the company on March 31 of next year. The Supervisory Board has initiated a search for a successor. Mucic is the third CFO in the company's 50-year history. He took over the position from Werner Brandt in 2014, when he was appointed to the Executive Board. Mucic began his career at SAP in 1996 as a member of the legal department.

After serving as CFO of the DACH region from 2008 to 2012, he was appointed Head of Global Finance and member of SAP's Global Managing Board in 2013. Mucic also leads SAP's sustainability efforts and is responsible for the Taulia and SAP Signavio business units. Taulia and Signavio are not yet on their own feet. Mucic's years of experience and knowledge of the SAP tradition will be missed by these two divisions as they emancipate.

One can feel sorry for SAP CEO Christian Klein. The young CEO is losing his experienced CFO and cloud comrade-in-arms. The future development of SAP's cloud business is in serious jeopardy. Luka Mucic not only has ten years more professional experience, but also knows SAP development first-hand. Rarely has there been such a smooth and successful handover in a DAX company as between ex-CFO Werner Brandt and Luka Mucic.

Chief Technology Officer Jürgen Müller and Chief Applications Officer Thomas Saueressig are no support for Klein. Chief Marketing Officer Julia White has delivered nothing in her first 100 days on the board and will remain a blank slate for the rest of her tenure at SAP. In terms of experience, intellect and ability, only Sabine Bendiek, Chief People and Operating Officer, offers herself as a partner and mentor for Christian Klein - perhaps a return to an SAP dual leadership.

"Luka has been a wonderful mentor throughout my career at SAP.", said Christian Klein on the occasion of the new situation. "His intellect and generosity, his principles-based leadership style, and his commitment to SAP and our customers have been tremendous assets not only to me personally, but also to the teams he has led, to our growth, and to our success as a company."

Note on the current E-3 Cover April 2022: Power of Orange is the leitmotif of SAP partner cbs and not a political statement. Due to the war in Ukraine by the Russian aggressor Vladimir Putin, which is to be condemned in every respect, the E-3 editorial team considers this note important for clarification against the background of the Orange Revolution of 2004.