VMware axes CEO to get growth back on track

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VMware axes CEO to get growth back on track

Simon Quicke

The ousting of the CEO of VMware has surprised some in the channel and comes against a background of booming interest in virtualisation technology.

The board of the vendor announced that Diane Green was being replaced with immediate effect by Paul Maritz to the position of president and CEO.

Maritz, a 14-year Microsoft veteran who retired from the software vendor in 2000, will now have the responsibility for helping the vendor hit its growth targets.

In a statement Joe Tucci, chairman of the board of directors, said it needed to introduce a change of leadership to reach "£the next stage of growth and development".

The vendor is announcing its results for the quarter ended 30 June later this month and has already indicated revenues will be below the previous guidance of 50% growth over last year.

Only last month at a distribution investors conference VMware's vice president of partner sales Steve Houck boasted that it had outgrown the market faster than analyst predictions and was looking to grow its market share even further,

Alan Brown, business strategy director at Panacea Services, said that it had been surprised by the move.

"From where we're standing, the virtualisation market is booming. VMware did not look like a company in crisis and there continues to be massive demand for virtualisation products from our customers, particularly large City organisations. It's unlikely the change will affect this demand much but it will be interesting to see how Maritz faces the upcoming battle with Microsoft's Hyper-V," he said.

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