The firm has also cut its sales forecast for the year, warning annual sales would likely fall "modestly below" previous predictions of 50% sales growth.
By submitting your email address, you agree to receive emails regarding relevant topic offers from TechTarget and its partners. You can withdraw your consent at any time. Contact TechTarget at 275 Grove Street, Newton, MA.
The VMware share price dived almost 25% on the sacking and sales announcement, part of a 70% slide since last October.
VMware is the market leader in server virtualisation, where companies can run multiple operating systems and demanding applications on a single machine to save on costs.
Greene has been replaced by Paul Maritz, a former senior Microsoft executive who managed the development of Windows 95 and other software releases before he retired from Microsoft in 2000.
EMC, which owns 85% of VMware, was the main instigator of Greene's removal.
EMC and other major investors wanted someone with more experience of running a large and growing company, and said Greene had been offered other roles, but that she had refused to move over.