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VMware CEO in shock departure

Virtualization software company VMware gets rid of founder and CEO

VMware has pushed out CEO and founder Diane Greene, in a shock move that hit share prices by more than 25%.

The board of virtualization specialist, and stock market favorite, VMware has appointed Paul Maritz to replace Greene. Formerly with Microsoft, Maritz start up company Pi was acquired by EMC in Feburary.

Shares in the company hit a low $36.51 on Tuesday, down from $53.19 at end of day on Monday. VMware also warned that it would miss revenue targets for 2008, stating that revenues for the year would be "modestly below the previous guidance of 50% growth over 2007".

No reason was given for the sudden departure, which comes at a time when VMware is gradually facing more serious competition in the virtualisation space from products such as Microsoft's Hyper-V and the open source KVM hypervisor.

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