Virtualisation giant VMware has named Borland Software CEO Tod Nielsen to the newly created position of chief operating officer.

It's the latest chapter of a VMware management shakeup that began with the ouster in July 2008 of co-founder and CEO Diane Greene.

Nielsen had held the top job at Borland, which focuses on application lifecycle management tools, since November 2005. He was previously senior vice president of marketing and global sales support at Oracle, and also spent 12 years at Microsoft, serving in roles such as general manager of database and developer tools.

"Having worked closely with Tod in the past, I know that we will work effectively together and complement each other," said VMware CEO Paul Maritz - another Microsoft veteran - in a prepared statement.

Maritz added that he will have more time to focus on product development and strategy, leaving the day-to-day marketing and operational duties to Nielsen.

VMware, a subsidiary of EMC, had revenue of $1.3 billion (approx £875 million) in 2007 and claims more than 120,000 customers, making it the virtualization market's largest player. However, it has faced heightened competition of late, including from Microsoft.

Meanwhile, Borland made an announcement of its own Tuesday, saying it would cut 15 percent of its workforce - about 130 full-time employees - and acknowledging Nielsen's resignation. Erik Prusch has been named acting CEO of Borland.