IBM Offers Virtual Linux-On-Demand Server Mon Jul 1, 1:41 PM ET Tim McDonald, www.NewsFactor.com
IBM ( NYSE: IBM - news) said Monday that it will launch a service that lets businesses buy "large-scale computing infrastructure" on demand and over the Internet, much as one might buy water or electricity from a local utility company.
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The technology lets users with Linux ( news - web sites)-based applications connect to IBM's zSeries mainframes running Linux, the open-source operating system. Instead of buying separate servers, companies can plug into IBM's "virtual servers," paying only for the power and storage they need.
IBM is calling it a major expansion of its utility computing effort. "It's a big step forward because you're talking about computing power -- true infrastructure -- across the network for the first time," IBM spokesperson Jim Larkin told NewsFactor.
Potential for Great Change
Utility computing is an emerging technology that, although approached cautiously so far by vendors, has the potential to radically change the way computing power is used on a global scale.
The idea is that hosting companies provide computing power and storage capacity that can be used and reallocated on a "pay-as-you-go" basis.
IBM's "Linux Virtual Services" allows customers to buy power by the "service unit," which IBM officials said would average around US$300 per month, depending on a user's particular needs.
'Server Sprawl'
When compared with the steadily dropping prices of servers, one might think this price model might not seem like such a good deal. Not so, says IBM, which offers managed services as part of the package.
Renting computer power instead of buying physical servers reduces costs in several ways, IBM claims.
"Customers should not think of it as a direct comparison in price between an Intel ( Nasdaq: INTC - news) server and the cost of a mainframe," Larkin said. "You've also got to factor in the whole question of server sprawl."
Companies that expand and buy additional servers must find the physical space, as well as hire IT technicians to monitor the servers, Larkin pointed out. And, there are other management costs associated with adding real servers.
"So when you factor all those pieces into it, the cost to rent the power from IBM becomes very compelling," Larkin said. "You don't have to buy new servers -- you use the existing stuff you've already bought to tap into the rented power."
Intersecting Technologies
Analyst predict utility computing will become more popular as various other Web technologies, such as Web hosting and grid computing, continue to evolve and begin to intersect.
Several companies, including IBM, Hewlett-Packard ( NYSE: HPQ - news) and Sun Microsystems ( Nasdaq: SUNW - news), have been experimenting with utility computing. HP has its Utility Data Center and Compaq has its Compute on Demand Initiative, for example.
One model with which companies have experimented involves placing servers, storage devices and printers onsite and charging customers only when the equipment is turned on and used. But IBM claims that Monday's announcement puts it ahead in utility computing efforts.
"IBM advances in technology now permit the 'virtualization' of computing, networking and storage components within the data center," general manager of IBM hosting services Jim Corgel said in a statement.