IBM announced that it has expanded its services that enable businesses to access computing capacity on demand. Using IBM's new Virtual Server Service, customers can tap into virtual server capacity on hosted IBM eServer xSeries, pSeries and iSeries systems, paying only for the computing power and capacity they require.

IBM is the first vendor to offer businesses a choice of Intel-based, Unix- based, or Linux-based server processing and network capacity delivered on demand. IBM became the first computer company to offer remotely-delivered virtual server capacity when it introduced Linux virtual services on eServer zSeries mainframe systems in July of 2002.

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.

Instead of the physical application servers they rely on now, IBM Virtual Server Services customers will tap into "virtual servers" on IBM eServer xSeries, pSeries and iSeries systems in a security-enhanced hosting environment, paying only for the computing power and capacity they require.

Multiple, scalable server technology platforms allow customers to deploy applications or services on varied technology platforms without having to manage their own systems or overinvesting in unused resources, therefore reducing time to market and total cost of ownership for the customer. With virtual servers, customers 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 customers to systematically 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.

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