July 8, 2008 / 6:53 PM / 11 years ago

INTERVIEW-VMware's Tucci says economy behind rev warning

BOSTON, July 8 (Reuters) - VMware Inc (VMW.N) Chairman Joseph Tucci said on Tuesday the weak economy was behind the revenue warning issued by the company earlier in the day.

“This economy is tough. We don’t see any signs of it improving soon,” Tucci told Reuters in an interview.

It is taking longer for the company to close sales because deals are getting more scrutiny from customers, he said.

“But it is not that we have lost deals,” he added.

He declined to say if other factors were behind the warning, saying VMware would elaborate when it reports quarterly results later this month.

Tucci also said the company’s board decided to fire VMware’s chief executive, company founder Diane Greene, because the software maker had grown to the point where it needed a CEO with more experience running a large company.

“After careful consideration we felt ... we wanted to get some leadership with more operational experience,” he said.

He said he asked Greene to stay on with VMware but she declined to take another post. Greene could not be reached for comment.

Tucci is chief executive of EMC Corp EMC.N, which owns 86 percent of VMware.

(Reporting by Jim Finkle; editing by John Wallace)

((jim.finkle@thomsonreuters.com; + 1 617 367 4164; Reuters Messaging: jim.finkle.reuters.com@reuters.net)) Keywords: VMWARE/TUCCI

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