The Palo Alto, California-based server virtualization giant VMware has, with a couple of name-changes while upgrading, released its next generation hypervisor - ESX Server 4.0 - and its associated management tools, which are now take the name vSphere rather than the earlier Virtual Infrastructure.

According to VMware's VP Marketing in server division, Bogomil Balkansky, the vSphere load up represents a 'strategy and product' set, which was earlier called the Virtual Data Center Operating System, or VDC-OS, but now the name has been changed to Cloud OS.

As per the company, vSphere 4 belongs to a new class of software that allows internal IT and the internal data center to take advantage of the relatively-recent and futuristic "cloud computing" technology - whereby services are offered over the web from remote data centers.

Balkansky said that vSphere would help customers save extra expenses by simplifying internal IT, and allowing them to use only what they need. He clarified, customers need not "worry about the capital expenditure of putting storage and network together because that's already been done."

The fourth major release of VMware's virtualization software in its 11-year span, vSphere will come in six editions, with $995 being the starting price for three physical servers for small offices. The software is expected to hit the markets in the second quarter this year!