[1]

IBM has released its first Web-based e-mail offering, an enterprise-focused addition to Lotus Notes called iNotes, and undercut Google in the process.

Users are able to pick their domain name and will debut at $3 per month. Google charges $50 per year  while Microsoft's web mail costs around $12 per month.

The service includes 1GB of storage per user and comes with calendar and contact capabilities – although customers can buy an additional 100GB storage as needed. Google, meanwhile, starts off with a 25GB inbox to go with its web-hosted word processing, spreadsheet, presentation applications and a tool for building a business intranet.

IBM is aiming the software at large enterprises that want to migrate an on-premise e-mail system to SaaS as well as from smaller companies interested in on-demand software.

LotusLive iNotes is based on technology IBM purchased from the Hong Kong company Outblaze."What we brought to Outblaze and to the marketplace is what you'd expect from IBM in terms of security, reliability and privacy," said Sean Poulley, vice president of IBM's Cloud Collaboration Services. "It's going to be very competitive both functionally and from an economic point of view.”