By Justin Lee, theWHIR.com
September 3, 2008 — (WEB HOST INDUSTRY REVIEW) — Virtualization solutions provider VMware (vmware.com) has apparently lost its top executive for product development after he resigned to return to rival software developer, Oracle (oracle.com), just nine months after joining VMware, according to reports by Reuters.
In a prepared statement, VMware CEO Paul Maritz said on Tuesday that he would announce a replacement for Richard Sarwal, executive vice president for research and development, in due course.
Sarwal joined the company in December 2007. VMware says that Stephen Herrod, chief technology officer and senior vice president for research and development, will take over his duties until its finds a permanent replacement.
News of Sarwal’s resignation fell hard on the New York Stock Exchange, with shares declining by four percent to $38.15 in afternoon trading. VMware shares have seen more than a 50 percent reduction in value this year.
Meanwhile, Oracle shares fell 1.5 percent to $21.60 on Nasdaq. Oracle spokeswoman Deborah Hellinger would not disclose any information as to what Sarwal’s role with the company would entail.
The company recently experienced a virtual server bug in its software that sent thousands of users offline, which it promptly issued a fix for.
VMware, majority-owned by EMC (emc.com), has suffered significantly this year, cutting its full-year revenue forecasts. The company cites new competition from Microsoft and a troubled economy as reasons.
In July, Maritz replaced Diane Greene, who co-founded VMware, in the role of CEO.
The company recently experienced a virtual server bug in its software that sent thousands of users offline, and issued a fix for the vulnerability as well as an apology soon thereafter.
