IBM adds e-mail to hosted software offerings

BOSTON (Reuters) - International Business Machines Corp said on Tuesday it will give customers the option of buying its Lotus e-mail and collaboration software as a service hosted at its data centers, allowing customers to access those programs through Web browsers.

Customers will be required to buy licenses for Lotus Notes and Domino software, then sign service agreements for IBM to host those programs at one of its data centers, said Lisa Johnston, the company's director for applications on demand.

IBM already offers similar services with software from other companies including Oracle Corp and SAP AG, she said.

Customers get everything they need over the Web without having to purchase anything up front. They pay monthly for the software.

Companies that offer such products include Salesforce.com, Google as well as privately held NetSuite Inc, which is majority-owned by Oracle Corp. Chief Executive Larry Ellison, and Workday Inc., whose chief executive is PeopleSoft founder Dave Duffield.

(Reporting by Jim Finkle)