IBM unabashedly pitched its new LotusLive iNotes as an alternative to email service Google has been promoting as part of a campaign to win businesses over to using applications hosted as services on the Internet. "Email and other collaboration services are the right entry point for many companies to realize the promise of cloud computing," said IBM Lotus Software general manager Bob Picciano.

"But, only if clients feel confident they're getting business-grade service from a trusted leader in enterprise services." Software provided online as a service instead of being purchased and installed on home or office computers has been a growing trend accelerated by tough economic times because it is cheaper to "rent" than to buy software.

Google has been enticing users to a suite of online applications offered as services, many of which compete with text, email, accounting and other software sold by Microsoft. The California-based Internet titan stumbled last month when its web-based email went offline for a couple of hours.