Star Internet and IBM have launched a new managed service offering, enabling UK-based firms and other businesses to pay for server capacity as they use it, rather than buying the machines out-right, or renting a fixed number of servers from a hosted data centre.

The new service model, On Demand – which Star and IBM claim is unique in the UK and northern Europe – aims to reduce customers’ costs by charging them for the server capacity that they actually use, rather than for the calculated peak capacity of the servers that they use, so that the charge mirrors the peaks and troughs in the firm’s usage of its infrastructure.