Software developer 3Tera (3tera.com) set out to tackle the problem head-on with its upcoming release, AppLogic, a grid operating system that runs and scales Web applications on grids of commodity servers.

"First and foremost, [AppLogic] enables hosting providers to differentiate [themselves]," says Vlad Miloushev, president and CEO of 3Tera. "Instead of offering the same services as everyone else, the same real dedicated servers, or low margin shared applications, [AppLogic] will allow you to run any application on the Web."

The innovative technology is built on what 3Tera calls a "disposable infrastructure," enabling it to visually assemble existing software directly into portable applications that run on any grid and scale from a fraction of a server to hundreds of servers with a single command.

AppLogic enables users to deploy existing Web applications without changing code, maintain hardware failures automatically without losing data, add or remove servers and storage without disrupting applications and manage all their applications, servers and storage with just a browser.

The solution enables hosting providers to offer metered utility computing services without buying expensive new hardware or re-training staff. Equipped with standard Intel or AMD servers, direct attached storage and Gigabit Ethernet, the software separates applications from the main hardware, enabling hosting providers to run applications smoothly, regardless of server requirements.

"A lot of hosting providers have tried to host existing regular applications," says Miloushev. "What we're hearing is that most of them have abandoned this because it's very labor intensive to do this; the profit margins don't work with this amount of labor. But with AppLogic, we can get all the packages packaged with the applications and make them available to hosting providers."

Among the ready to deploy applications are CPanel, SugarCRM, Bugzilla, Twiki and SiteKreator. Also included with AppLogic is a catalog of pre-packaged, tested and supported disposable infrastructure built using Linux and popular open source middleware like Apache, MySQL, JBoss and Ruby on Rails that can be used to deploy applications within weeks.

UtilityServe (utilityserve.com) is the first hosting provider to deploy the AppLogic service, a step it announced at last month's LinuxWorld Conference & Expo in San Francisco. Miloushev says that more providers will soon be announced.

"There are more and more hosting providers coming on board," says Miloushev. "We're also in discussions with three out of the four largest enterprise hosting providers in the world."

To support a utility pricing model, AppLogic incorporates full resource metering, integrating it within its hosting partners' revenue streams. 3Tera enables users to download, install, test and deploy the software for free, with no charge until users deploy applications on the system.

"This is the first technology to embrace all applications," says Miloushev, "it [allows hosting providers to] differentiate and earn a much better rate of return per server than it could otherwise, because [the hosting providers] are expanding their market beyond the traditional market."