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Apps & Software

VMware Talks Down Growth & CEO Is Out (VMW, EMC)

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By Douglas A. McIntyre Published
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VMware Inc. (NYSE: VMW) has made an announcement of a significant management change this morning.  Diane Greene is departing as the company’s President and CEO.

VMware’s Board of Directors has appointed Paul Maritz as President and CEO of VMware effective immediately. Maritz was also named to VMware’s Board of Directors.

Greene is one of VMware’s founders.  Maritz is a former Microsoft employee noted as one of the builders of their Windows franchise, and he founded cloud-based solutions company Pi Corporation in 2003.  Pi was acquired by EMC in February 2008.

The company is also sneaking in some guidance, while it says it isn’t.  "While VMware is not updating guidance for Q2, we expect revenues for the full year of 2008 will be modestly below the previous guidance of 50% growth over 2007."

VMware shares are down literally about 20% at $42.50 in the initial reaction.  Expect a drop in EMC Corp. (NYSE: EMC) as well as it is the majority owner of VMware.

Jon C. Ogg
July 8, 2008

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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