VMware says another executive is stepping down

VMware Inc. said today that a senior executive in charge of product development is leaving after seven years with the company, the latest in a string of executive departures in recent months.

California-based VMware, whose virtualization software helps businesses boost the efficiency of server computers and cut energy costs, is majority owned by EMC Corp., the data storage giant with headquarters in Hopkinton.

Company spokeswoman Mary Ann Gallo said that vice president of product development Paul Chan will leave Oct. 3.

VMware stock, one of last year's top tech performers, has lost about two-thirds of its value so far this year as two of its founders and its top executive in charge of research and development have left the software maker.

Investors are concerned about the departure of those executives as well as mounting competition from Microsoft Corp , which recently introduced rival software to VMware's top-selling product. They are also worried about cuts to corporate technology budgets as the economy weakens.

Gallo said that she could not immediately say why Chan is leaving or who will replace him.

Chan could not immediately be reached. (Reuters)