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Sidhu steps down as i2 CEO

J M Shenoy

Sanjiv S Sidhu, who quit his job at Texas Instruments 12 years ago to write a code for his business in his cramped Dallas apartment and guided his supply chain management company to be one of the biggest success stories in America, stepped down as its CEO.

Sidhu, 43, whose net worth was computed to be $6 billion last year, will be replaced as chief of i2 Technologies Inc, by Greg Brady, 40, the Dallas-based company's president since 1994. This is the second big shakeup in the business-to-business software vendors in recent weeks. Two days ago, Ariba replaced its CEO.

Hyderabad-born Sidhu was among the first to recognize that supply chain software over the Net could dramatically improve business efficiency.

But like many other hi-tech companies, i2, which produces software that helps companies better manage their suppliers and inventory commitments, has also faced rough times in recent months, with its profits down and about 10 per cent of its 6,100 workforce. Its stock crashed by near 70 per cent for the year and traded around $17 per share recently. i2 closed at $20.03 on Wednesday.

"Although we continue to see healthy demand for our solutions, some customers are delaying purchasing decisions due to uncertainties in the economy," Sidhu had said recently

Some industry analysts saw the problem differently. Though i2 has built one of the top sales forces of any enterprise software company, The Standard noted recently, its inability to deliver on promises its salespersons make. The article recalled how two months ago, Nike had blamed an earning shortfall on difficulties with i2 software; a charge denied by Sidhu.

"i2 excels at sales, but its execution isn't always flawless," Karen Peterson, a research director at Gartner Group had said recently. "The salespersons make bold promises that their software doesn't always live up to."

Sidhu, 43, will remain chairman of i2 under the new setup. Romesh Wadhwani, whose Aspect Development was bought by i2 last year, resulting in software's biggest merger, will remain vice chairman.

In a statement, the company said Sidhu will be "responsible for providing on-going direction and vision for the company."

"Greg and I have worked very closely over seven years, building a strong company focused on delivering value to our customers," Sidhu said.

"Greg possesses the best combination of sales and marketing, technology and business skills of any executive I know in the high-end software applications space," he continued.

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