hio -
Yesterday's CPQ announcement signaled the end of the "geo-dominated" classic CPQ. In the world according to Pfeiffer, the geos controlled everything about how CPQ went to market - the product mix, the advertising, the prices charged for products, the channel relationships, even service and support. The product groups were captive to the geos in terms of execution. EP understood the field, and did not understand the products well - he was not a technologist. So he left the power in the areas of the company he understood.
The announcement yesterday was really revolutionary for CPQ. The three global business units will control everything about their products - including the field. The sales force becomes a delivery and execution subsidiary to the product teams.
Andreas Barth had long been the most powerful of the geo heads. During most of EP's tenure, the geos were roughly divided between Ross Cooley, who owned North America, and Barth, who owned Europe. These two geos accounted for more than 80% of CPQ's revenue and these two executives ruled them absolutely, and thus controlled most of CPQ's destiny.
After Cooley left, there has been a power vacuum in North America. EP pretty much ran that personally after Cooley's departure.
It is unlikely that Barth would be interested in a much reduced role, especially working for Peter Blackmore, a former Barth protege. He had done a fine job in building and maintaining EMEA (the european geo) which had grown to provide 40% of CPQ revenue. Why not retire on a high note?
Koepf is highly regarded as a competent, execution-oriented executive and in the reduced role he will have, I would expect him to do fine. |
