Hasso Plattner, who founded SAP with former IBM colleagues more than 30 years ago, was co-chief executive along with Henning Kagermann.

He will now join the German company's supervisory board and leave Mr Kagermann as sole CEO.

Mr Plattner's exit comes among growing suggestions that he was tired of his role and will soon step down altogether.

New pursuits

"I think it's inevitable," said Bruce Richardson, an analyst at industry research group AMR.

He can now be the senior statesman of the software market Bruce Richardson, AMR

"The guy's a billionaire. He doesn't have to work hard or travel as much... the company's direction has been set."

SAP supplies business planning and internet-based software to almost 20,000 companies.

The company has managed to ride out the current slump in the technology sector better than most of its rivals and comfortably beat analysts expectations for 2002.

Mr Plattner, 59, is one of the most colourful characters in European business and Germany's 10th richest man.

He sparked speculation that his interest in the company was waning when he failed to show up for SAP's annual news conference in January after competing in the Cape to Rio yacht race.

Analysts say Mr Kagermann, who became co-chief executive in 1998, has provided a more reserved and good humoured counterpart to the more fiery Mr Plattner.

But they suggested Mr Plattner was unlikely to disappear.