The status of the problem has gone from "red to yellow and yellow is trending toward green. We will be bright green in the fall," Gilroy said. In responding to questions about the recent departures of Dawn Jaeger, channel development manager, and Geoff Ashley, director of channel sales for ByD, Gilroy said that attrition was at acceptable levels. SAP utilizes attrition in its balanced score card and said there are levels of employee loss that are both too low and too high. Without discussing the specifics about the departures, Gilroy said, “Anytime anybody leaves I log a phone call into those people. I can tell you I have my finger on the pulse of the organization." He also noted that, "I am driving a pretty hard change agenda. Some people are energized by change, some people don’t like that." Gilroy also remarked the "natural recruiting culling process" in which some new VARs decide they aren't a fit for a new product or SAP decides they aren't. Economics determines some of these decisions. "The interesting thing is that the P&L components of any cloud are pretty compelling. The balance sheet component is challenging," said Gilroy. "You have to have a lot of capital."