Greene was replaced by Paul Maritz, a former Microsoft executive. Maritz addressed attendees at VMware's annual VMworld conference in Las Vegas on Tuesday, and laid out a strategy for the company that focuses on virtual desktop computers, virtual cloud computing and virtual data center operations.
Katherine Egbert, an analyst with Jeffries & Co., said in a research note that while VMware's plans provide a good framework for new product development and growth, they "will take several years to achieve."
Egbert, who cut her target price on VMware's stock to $30 a share from $40, said the company appears to be challenged by reports that many of its developers are leaving the company, and the competition coming from Microsoft's HyperV virtualization technology.
At Citigroup, analyst Brent Thill echoed some of Egbert's thoughts about Microsoft, saying that the company's presence in the market "may be having an economic impact" on VMware, even though VMware has better products.
Thill also said that VMware will likely continued to be roiled by its heavy exposure to the financial sector, declines in overall sales, and the possibility of more executive changes. Thill holds a $33 price target on VMware's stock.