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VMWare Drops 25% Of Market Cap

Stock in virtualization provider VMWare today dropped almost 25%, as growth expectations were lowered and founding CEO Diane Greene was replaced by the board. Prior to today, VMWare were the fourth largest software company in the world, with a market cap of over $20B. They have slipped down the list and lost $5B in value as the company struggles to match high growth expectations places on it after its much-hyped IPO almost a year ago.

Greene, an original founder of the VMWare company, will be replaced by Paul Maritz as President and CEO, and he has also been assign to the board of the company. Maritz was the founder of Pi Corporation, a cloud based storage and services provider that was acquired by EMC last year. Previously Maritz was the VP of Cloud Services at EMC, and prior to that was a long-term executive at Microsoft.
The company faces a number [...]

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