Start-up Parallels recently introduced virtualization software for workstations and announced plans to expand into server-based virtualization.

Parallels joins an already crowded space that consists of virtualization tools from VMware, Microsoft, SWsoft, plus the open source Xen virtual machine monitor, which XenSource has just begun marketing. Parallels says it differs from these other implementations because its Parallels Workstation product is priced at $100 per physical workstation. By contrast, VMware's GSX Workstation is priced at $189.

Parallels Workstation is in beta test now. It runs on Windows or Linux workstations and can host a variety of guest operating systems, including Linux, Windows, MS-DOS, OS/2, eComStation and FreeBSD. Future versions of Parallels Workstation will support NetWare, Solaris and Mac OS X.

Parallels Workstation is most similar to VMware's GSX Workstation, which is used primarily for application development and testing. Parallels claims that its software is so easy to use that it could be installed on an end-user's desktop to allow them to run multiple operating systems.

With Parallels Workstation, there is no limit to the number of virtual machines that can exist on a physical box.

Version 2 of the workstation product, along with the Parallels Server product due in early 2006, will support dual-core processor technology. Intel's Vanderpool virtualization technology will be supported in Parallels Server as well as in Version 3 of the workstation product, also due in early 2006.

"Parallels Server is very similar to Parallels Workstation - it is an emulation-based package," says Ben Rudolph, marketing manager for Parallels. "Enterprise Server has its own self-contained operating system that sits directly on the hardware in between the hardware and the operating system that can dynamically pool and allocate resources to the virtual servers."

The company also expects to release Parallel Enterprise Server in mid-2006. "Enterprise server is targeted more at the enterprise-sized businesses than Parallels Server, which has some home applications," Rudolph says.

Parallels was founded in 2001 and is located in Herndon, Va. The company is privately funded.

Interested users can download the Parallels Workstation beta software from the Parallels Web site.