Storage start-up ParaScale is opening a beta trial for software that will let IT shops build internal storage "clouds" and give service providers the ability to build cloud storage services similar to Amazon's S3. 

ParaScale's software aggregates disk storage on standard Linux servers and some Windows machines to create a pool of storage that can be easily managed and accessed over a network. While cloud storage typically refers to storage accessed over the Internet, ParaScale CEO Sajai Krishnan says his company's target customer base includes businesses that want to build "private clouds" inside the firewall.

"Whether it's the Internet or an intranet, it means I've got a pool of storage that I don't see and I don't manage … but I'm able to access it over distances," Krishnan says.

On Monday ParaScale is announcing its second beta trial, allowing users to download the software from its Web site for the first time. Potential users can apply on the Parascale site for a limited number of slots.

The trial will be followed by general availability within six months or less, Krishnan says. ParaScale software will be sold through channel partners. Price is undetermined but should be around a dollar per gigabyte, he says.

ParaScale is hoping to attract vendors that want to compete against Internet services like Amazon’s S3, which provides scalable storage capacity that’s paid for on a monthly basis. IT shops that like the Amazon model but aren’t comfortable putting their data online may also want to try out ParaScale's software, Krishnan says.

"We think there is an opportunity to fundamentally change the economics of cloud storage," Krishnan says.

ParaScale, which was recently featured in Network World's Companies to Watch series, has overseen trial installations of its technology at Blue Coat Systems and four other beta customers. ParaScale's software-only product can be loaded onto standard Linux servers, or Windows machines if they have been virtualized with VMware's hypervisor.