SAP SE, the German software company with more than 13,000employees in the U.S., is competing with Google Inc. and FacebookInc. for top Silicon Valley graduates the old-fashioned way: aface-to-face pitch.

“Not a lot of companies are doing that anymore, this is whereyou gain traction,” Stefan Ries, SAP's personnel chief, saidyesterday at Bloomberg's Berlin office. “People want to see you andtalk to you and that hopefully makes the difference.”

Helping lead the charge will be Quentin Clark, a Microsoft Corp.veteran who started this week as SAP's chief technology officer andwill be based in Palo Alto. Nabbing talent from Stanford Universityand other California campuses is crucial as SAP tries to gain anedge over big technology peers as well as startups, Ries said.

Silicon Valley is one of the most competitive places to vie fornew employees. A Glassdoor Inc. report in May that ranked U.S.employers based on compensation and benefits showed that technologycompanies made up 12 of the top 25 spots, with most of those basedin northern California. Google placed first on the list, andFacebook came third.

SAP Chief Executive Officer Bill McDermott this year accelerateda shift into the new business fields as revenue from traditionalsoftware suites installed on customers' premises drops off fasterthan initially expected. CTO Clark's mandate also includes shapingSAP's technology push after the departure of development chiefVishal Sikka in May.

Investors have been skeptical whether the company cansuccessfully manage its transition into Web-based software amidintensifying competition with Salesforce.com Inc. and Workday Inc.The shares were down 15 percent this year through yesterday. Theyrose 1 percent to 53.69 euros at 9:01 a.m. in Frankfurt, valuingthe company at 66 billion euros ($82 billion).

The shift to cloud computing has also prompted about 2,000positions to be eliminated, forcing Ries to oversee the company'sfirst major job reduction in five years.

SAP's last attempt to pare its workforce didn't go down smoothlyat its headquarters in Walldorf, a town south of Frankfurt. FormerCEO Leo Apotheker's plan to cut 3,000 jobs in 2009 caused a plungein morale and helped accelerate his exit.

This time, about 30 percent of the affected people have alreadybeen moved to new posts internally, according to Ries. The ratiocould rise to as high as 70 percent after the company reaches adeal with labor representatives in Germany and France, thepersonnel chief said.

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