No surprise, Mendel Rosenblum resigns from VMware

VMware's co-founder Mendel Rosenblum is the latest to leave the company following Diane Greene's removal as CEO

VMware has been facing a number of challenges since the removal of its co-founder and CEO Diane Greene, which includes growing competition from the likes of Microsoft and its Hyper-V hypervisor, Citrix, Parallels, Oracle, Sun, Virtual Iron, and a whole host of others that are all fighting for increased market share from IT organizations that are facing tightened budgets for the remainder of the year.

The dismissal of Diane Greene earlier this summer started a negative trend for the otherwise positive virtualization giant. Upon her departure, shares in VMware dropped by 24 percent. And since Greene's removal, three other key figures in the company have resigned.

On Sept. 2, VMware announced the resignation of Executive Vice President of Research and Development Richard Sarwal. Greene brought Sarwal over from Oracle in December 2007, and now he leaves VMware to return to Oracle, a company that has its own virtualization platform and a VMware competitor.

It is also being reported that Paul Chan, VMware's vice president of product development, will also leave the company next month after quietly resigning his position in August after serving seven years in the company.

And finally, the brain drain continued on Tuesday with the breaking news that Dr. Mendel Rosenblum, VMware co-founder, chief scientist, and husband of ousted Diane Greene, resigned his post as well. The move was certainly no surprise. The only surprise was that it took two months after his wife's removal as CEO and that it didn't happen sooner. Perhaps the news of his departure was postponed until after registration for VMware's massive virtualization event, VMworld, was concluded. The show takes place next week in Las Vegas with an estimated 14,000 in attendance; at the annual event, Rosenblum is always considered a crowd favorite keynote speaker. He and Greene will both be missed this year.

Don't get me wrong, the company still has more than its share of virtualization experts and brainiacs on the payroll, but losing Rosenblum is still a big deal in my book. He was more than a figurehead at the company; he was its visionary and someone who continued to come up with forward thinking technology designed to lead the company down an innovative path to the future, staying ahead of the competition.

It is being reported that Rosenblum will continue to work at Stanford where he and his wife, along with other colleagues, first started VMware 10 years ago.

VMware shares closed down Tuesday $2.44, a nearly 7 percent drop, reaching $32.47. The stock went down as low as $31.51 on the day, its lowest point since it first went public back in August 2007 for $29 a share.