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IBM takes "on-demand" plan downstream

Big Blue reaches out to smaller businesses with its new computing model that's intended to allow companies to buy computing power as it's needed.

Margaret Kane Former Staff writer, CNET News
Margaret is a former news editor for CNET News, based in the Boston bureau.
Margaret Kane
IBM is reaching out to smaller businesses with its "on-demand" computing model.

The company on Tuesday announced a new software, training and support program that will allow its resellers to work with the new business model.

IBM launched the new plan last month. The idea is that by using advanced computer networks and other new technologies, businesses will be able to buy computing power as it's needed, similar to the way electricity is purchased.

Big Blue is making a big bet on the model, setting up a new on-demand computing group and committing to spending $10 billion on research and development, company initiatives and acquisitions, CEO Sam Palmisano said recently.

The initial launch focused heavily on big business. But with Tuesday's announcement, IBM is reaching out to smaller companies.

The new launch makes some of IBM's middleware products--software that connects back-end programs such as databases with client programs such as Web browsers--available to smaller companies. One of the first products available will be an Express version of IBM's WebSphere software, an application server that developers can use to build programs. WebSphere-Express will start at $25 per user.

An Express version of IBM's DB2 database software is expected to be available in the first quarter of 2003. It will start at $1,000, and will be available on Linux, Windows and Unix.

IBM and VeriSign will also release a security service that uses IBM Tivoli Access Manager to secure portals, extranets and other business applications.