VMware Ousts CEO Diane Greene |
| BusinessWeek - Jul 8, 2008 |
VMware ended a long-running battle over its strategic direction on July 8, ousting co-founder and CEO Diane Greene and installing Microsoft veteran Paul Maritz in her place. Investors pounded VMware's once high-flying stock on the shakeup and a warnings on sales growth. Still, Maritz's ascent could be just the tonic investors have sought as the company squares for a fight with the new CEO's former employer and grabs turf in the emerging cloud-computing market.
For months, Wall Street has been pressuring EMC (EMC), which owns most of VMware's (VMW) stock and controls virtually all of its voting rights and board, to replace Greene. She co-founded VMware a decade ago and sold it to storage vendor EMC in 2004, and stayed at the helm after VMware's blockbuster IPO last year. But Wall Street analysts and people close to the company say Greene clashed with EMC management over costs, the company's independence, and its ability to strike deals to distribute its software with EMC competitors like IBM (IBM) and Hewlett-Packard (HPQ). As VMware prepared to lower its 2008 sales estimate for the second time in six months, warning that revenues would fall "modestly below" previous guidance of 50% growth, the board made its move.
Read Full Article from BusinessWeek
- Posted: 2008-07-08 21:19:43
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