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IBM Unveils On-Demand Add-On For WebSphere: Page 2 of 3

"You really do need to offer this kind of tier-level capability and pricing," Gordon Haff, analyst for market researcher Illuminata Inc., said. "Otherwise, you're forced to either give it away, or make it so expensive that only the largest enterprises will be able to buy it."

Offering multiple options for its on-demand technology is particularly important for IBM, which "really wants on-demand to move downhill to at least the medium-business space," Haff said.

The new product, which is in beta and scheduled for release later in the year, can divide jobs over many processors, databases, software and servers, assigning technology to specific tasks, IBM officials said. It can also prioritize workload based on its relative importance to other tasks.

The system includes a software console for administrators to monitor the performance of the product and handle system configurations.

IBM, along with rivals Hewlett-Packard Co. and Sun Microsystems Inc., have been aggressively marketing the concept of an IT infrastructure that can adapt quickly to changes in demand for computing power caused by shifts in a company's business operation.