This offers businesses a choice of Intel-based, Unix-based, or Linux-based server processing and network capacity delivered on demand. With access to virtual server solutions on every IBM eServer platform, businesses now have the potential to achieve from 15 to 30 percent cost savings over deploying solutions in-house.

"On demand businesses require secure, flexible environments to deploy critical applications and services," said Jim Corgel, general manager, IBM e-business Hosting Services. "We are addressing this need by providing customers with a comprehensive, scalable virtual service, on multiple technology platforms, to help them reduce costs and compete better."

Instead of the physical application servers users rely on now, the new offering allow users to tap into "virtual servers" in a security-enhanced hosting environment, paying only for the computing power and capacity they require.

Multiple, scalable server technology platforms allow users to deploy applications or services on varied technology platforms without having to manage their own systems or overinvesting in unused resources. With virtual servers, users are able to deploy single or multiple applications or services within the virtual machine and pay only for the server resources used.

IBM's Virtual Server Services help users to decrease capital spending through consolidation of their current Windows, AIX or OS/400-based infrastructure. They can benefit from standardization of tools and methods across their disparate systems and seize control of their costs with usage-based pricing. Virtual server solutions are deployed from an IBM Service Delivery Center and managed by IBM Global Services.

By adding additional virtual infrastructure services, such as Internet connectivity, caching, storage and backup services, and virtual firewall and load balancing through IBM's partnership with Inkra Networks, users can experience a comprehensive virtual hosting solution with total usage-based pricing.

Users will be charged a one-time setup fee, followed by variable monthly recurring charges for the computing capacity consumed.