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VIRTUALIZATION BECOMES FOCUS OF COMPUTER BUSINESS INDUSTRY

IBM's Silicon Valley Laboratory, located in Coyote Valley outside San Jose, Calif., is attempting to make networked, Intel-type computers behave much like older mainframe computers. By combining various computer resources and treating them as one large machine, companies may help to push low-cost servers into segments currently dominated by huge, expensive machines. The idea is referred to as virtualization.

The Silicon Valley Lab unveiled the first of its planned "Centers of Competency" for its On-Demand plan. Virtualization is a very important part of this strategy.

Virtualization could revamp the way IT business is done today. Technological spending risks are diminished, which lets users add more capacity as it is needed. The guesswork is virtually eliminated.

IBM will use the process through the WebSphere software platform. It is hoped that only minor tweaks will be necessary for WebSphere-ready software to benefit from virtualization. Virtualization is similar in concept to IBM's grid-computing, which links systems across large networks.

Hewlett-Packard, with its Adaptive Enterprise effort, and Sun, with its N1 umbrella, are also adopting the ideas of virtualization.

The systems involved can shift computing power and storage between units as needed. If more power is needed, another computer just needs to be hooked up to the network.

When usage levels peak, dormant servers can share the load and hardware will work at a more optimum level.

Experts believe virtualization could diminish business costs by 15-25 percent by 2008.

HP expects the market for virtualization software to hit $3 billion within the next four years.

Cigna Corp, for instance, is applying IBM virtualization to its 33 applications including billing and voice-response phone systems. Cigna can thus eliminate the extra software licenses that sat on idle servers.

The visualization idea was enhanced earlier this month with HP's Client Consolidation Infrastructure, which connects blade-type servers that imitate desktop PC functions. Users, hooked up to the blade server assigned to them, shouldn't be able to tell the difference if they use a different one later when they log back in to the system. This gives users the ability to log in from just about anywhere, on-site or off.

In addition, HP launched an updated version of its Virtual Server platform for BEA's Weblogic and Oracle's database software.

Sun touted its N1 package stating that over 110 customers are using it in some way, including DaimlerChrysler AG, Verisign, and Samsung. While similar to IBM and HP in its approaches, Sun claims a unique technique where customers easily solve their own problems, as opposed to a team of consultants.

Sun has a smaller services business than its rivals, focusing on hardware sales.

IBM says its virtualization effort is broader than Sun's or HP's with thousands of customers running actual applications.

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