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SAP to sell TomorrowNow?

Software giant exploring its options...

Tags: court battle, legal action, oracle, sap

By Dawn Kawamoto

Published: 20 November 2007 09:38 GMT

SAP has announced its third-party support and maintenance company TomorrowNow, which is embroiled in a legal battle with rival Oracle, may be put up for sale. TomorrowNow's founder and several executives have resigned effective immediately.

SAP acquired TomorrowNow as a means to draw maintenance and support customers away from Oracle. TomorrowNow provides third-party support and maintenance for PeopleSoft and JD Edwards - two companies Oracle acquired.

But earlier this year, Oracle filed a lawsuit against TomorrowNow and SAP, alleging the company went beyond its former customers' contracts and downloaded proprietary Oracle software and materials.

SAP and Oracle have been in the process of seeking documents and depositions from each other and are scheduled to give the court an update in February on that process.

In the announcement, SAP said it is exploring its options for TomorrowNow's business, including the possible sale of TomorrowNow. An SAP spokesman declined to comment on whether these options are currently being explored because TomorrowNow has seen a drop-off in customers since the controversy erupted, or whether it may be part of any potential settlement negotiations with Oracle.

Mark White, TomorrowNow executive chairman, will continue in his role in running the company.

Dawn Kawamoto writes for CNET News.com

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