VMware Acquires Business Management SAAS Provider Digital Fuel

By Chris Preimesberger  |  Posted 2011-06-13 Print this article Print

Digital Fuel's products and services enable companies to manage and optimize cost associated with cloud systems.

VMware made a move into the business-management software as a service sector June 13 by acquiring Israel-based Digital Fuel.

Terms of the transaction were not released by either company, but Globes, an Israeli business Website that has covered the burgeoning IT scene in that country for a long while, reported that the deal cost VMware $85 million.

VMware, which acquired enterprise social-collaboration software maker SocialCast only two weeks ago, now has added five companies to its fold this year.

Eleven-year-old Digital Fuel, founded by President and CEO Yisrael Dancziger, specializes in IT financial and business management software as a service. Its products and services enable companies to manage and optimize cost in cloud systems.

Digital Fuel's IP will provide VMware's enterprise customers with meaningful measurements and reports, including a bill of IT services, chargeback information, service-level reporting and vendor scorecards; consolidated visibility into all IT costs (capital expenditures, operating expenses and service costs); and better management of IT agendas, enabling fact-based decisions across the IT portfolio.

Digital Fuel has several hundred enterprise customers, including BASF, BBC, BT, Capital One, Capgemini, Cisco Systems, Dell, Deutsche Bank, First Horizon, GE, IBM and others.

The acquisition is scheduled to close in July.


Chris Preimesberger Chris Preimesberger was named Editor-in-Chief of Features & Analysis at eWEEK in November 2011. Previously he served eWEEK as Senior Writer, covering a range of IT sectors that include data center systems, cloud computing, storage, virtualization, green IT, e-discovery and IT governance. His blog, Storage Station, is considered a go-to information source. Chris won a national Folio Award for magazine writing in November 2011 for a cover story on Salesforce.com and CEO-founder Marc Benioff, and he has served as a judge for the SIIA Codie Awards since 2005. In previous IT journalism, Chris was a founding editor of both IT Manager's Journal and DevX.com and was managing editor of Software Development magazine. His diverse resume also includes: sportswriter for the Los Angeles Daily News, covering NCAA and NBA basketball, television critic for the Palo Alto Times Tribune, and Sports Information Director at Stanford University. He has served as a correspondent for The Associated Press, covering Stanford and NCAA tournament basketball, since 1983. He has covered a number of major events, including the 1984 Democratic National Convention, a Presidential press conference at the White House in 1993, the Emmy Awards (three times), two Rose Bowls, the Fiesta Bowl, several NCAA men's and women's basketball tournaments, a Formula One Grand Prix auto race, a heavyweight boxing championship bout (Ali vs. Spinks, 1978), and the 1985 Super Bowl. A 1975 graduate of Pepperdine University in Malibu, Calif., Chris has won more than a dozen regional and national awards for his work. He and his wife, Rebecca, have four children and reside in Redwood City, Calif.Follow on Twitter: editingwhiz

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