IBM plans to overhauls its i5/OS operating system next year, featuring new encryption, virtualization and Web services capabilities, while the System i server the operating system runs on will become twice as powerful with a new release in September.

I5/OS Version 6, to be released on an undetermined date in 2008, will feature encryption of data on disk drives and tape backups; virtualization allowing one i5/OS partition to host storage for another partition; tools for deployment and integration of Web services; and a Web application server to simplify deployment of Java applications.

The storage enhancement will make it easier and less expensive to create virtual-server partitions, which can number up to 160 on System i servers, IBM says. Previously, the operating system would not allow the sharing of hard drives across multiple partitions, forcing clients to set aside new storage.

IBM refers to i5/OS as an “integrated” operating system, because it includes database management, storage management, security and a Web application server, items that in other cases may have to be purchased separately, says Elaine Lennox, vice president of marketing for System i. Next year’s operating-system upgrade will be better able to support mixed environments, including Unix and Windows operating systems.