VMware chief executive ousted

Diane Greene will be replaced by former Microsoft executive Paul Maritz

Diane Greene: Replaced

Shares in virtualisation software company VMWare plummeted 28 per cent yesterday as chief executive Diane Greene was ousted from the company.

VMWare also cut its yearly sales forecast, and said annual revenues were likely to fall below predictions.

Virtualisation is one of the largest growing markets in software, and VMWare – originally a pioneer in the market - is facing more competition as giants such as Oracle move into the market.

VMWare did not confirm the reason for the move, though it is thought the board was concerned that the company was not sustaining its previous rate of growth.

The company's shares have fallen 70 per cent since November.

Greene will be replaced by Paul Maritz, a former Microsoft executive who managed the development and marketing of Windows 95 and Windows NT.

Chairman of the board Joe Tucci said he hoped the change would lead to further growth for the company.

“VMware is in a tremendous position to extend its lead in the virtualization market," he said.

"VMware’s Board of Directors is very pleased to be able to appoint an executive with Paul’s experience and track record to lead VMware to its next stage of growth and development."