SAP makes TomorrowNow yesterday's news

SAP is set to distance itself from TomorrowNow, the subsidiary that is accused by Oracle of stealing corporate confidential information about clients.

SAP acquired TomorrowNow in early 2005 to provide independent maintenance and support for PeopleSoft customers after the firm had been acquired by Oracle. In March this year, Oracle filed a lawsuit against SAP accusing the TomorrowNow division of "inappropriate downloads" of Oracle support materials, among other things.

Oracle alleged some 10,000 technical documents from Oracle's Customer Connection had been illegally downloaded from the TomorrowNow offices. These materials apparently included program and software updates, bug fixes, patches, custom solutions and instructional documents for the PeopleSoft and JD Edwards portfolio.

In July, SAP admitted to charges leveled against it by Oracle and admitted that employees at TomorrowNow had downloaded customer support files to which they were not entitled. SAP Hennig Kagermann said at the time that heads would roll.

TomorrowNow's current CEO, Andrew Nelson, one of the founders of the third-party support provider, and several members of TomorrowNow's senior management team are resigning, effective immediately. TomorrowNow's management team also includes Nelson's wife and other family members.

Mark White, who was appointed by SAP as executive chairman of TomorrowNow in July 2007, will continue in that role.
"Our primary focus is TomorrowNow's existing customers, who will be supported through this management transition," said White. "SAP is prepared to manage through these changes to ensure that TomorrowNow's obligations to its current customers are met."

But it's now widely speculated that the next step will be for SAP to divest itself of the subsidiary altogether in a bid to reach a settlement with Oracle before the case is scheduled to return to court in February next year.