Google on Thursday announced Compute Engine, a cloud-computing service that allows businesses to run their applications on servers in the tech giant's data center.

Google Compute Engine is an Infrastructure-as-a-Service product that lets potential users run Linux Virtual Machines (VMs) on the same infrastructure that powers Google - high performing, scalable data centers placed around the world.

The Compute Engine allows users to launch Linux VMs on-demand and offer 1, 2, 4 and 8 virtual core VMs with 3.75GB RAM per virtual core. Storage option sinclude local disks, Google's new persistent block device, or Google's Internet-scale object store, Google Cloud Storage. VMs are connected toether using Google's high-performance network technology to form compute clusters and manage connectivity to the Internet with configurable firewalls. Users can connect their virtual machines to the Internet with either static IP addresses or ephemeral addresses that are assigned to their machines. The VMs can be configured and controlled via a scriptable command line tool or web UI. Alternatively, users can also create their own dynamic management system using Google's API.

The new service promises to offer its clients scalability - users can aunch enormous compute clusters, performance and value, as Google's data centers allows Google Compute Engine to provide 50% more compute for money. Google will offer a free package of the service, along with 'Paid' and a 'Premier' versions. For pricing details visit http://cloud.google.com/pricing/.

At launch, Google has worked with a number of partners - such as RightScale, Puppet Labs, OpsCode, Numerate, Cliqr and MapR - to integrate their products with Google Compute Engine. These companies offer management services that make it easy for Google's clients to move their applications to the cloud and between different cloud environments.

With the new service, Google is targeting Amazon's web services as well as Microsoft's Azure, which has the advantage of allowing developers and customers to host Linux and Windows Server, as well as applications (including SharePoint Server and SQL Server in these VMs).