IBM says its new WebSphere Portal Server makes portal deployment quicker, simpler and less expensive than its top of the line WebSphere Portal Enable and Portal Extend products.

The server, which is built on an Ajax interface, offers core WebSphere portal functionality like application integration (for SAP, Oracle and BEA), templates, personalization tools, customization enhancements for better team productivity, and RSS support. Developers also have access to over a 1,000 partner applications (portlets) including IBM Lotus’ collaboration and messaging suite

What’s missing are more advanced features like Web content management, document repositories and instant messaging. But IBM said it is offering favorable terms for customers to upgrade to Portal Enable and Portal Extend if they want these capabilities in the future.

IBM said the functionality and pricing is designed to let SMEs build customized Web applications on WebSphere without breaking the bank. Applications developed could include customer call centers and human resource departments.

The core functionality and simple licensing is designed to help [SMEs] get their sites up and running, said IBM in a statement.

The server costs $2,500 for a 20-user system, or $50,000 per CPU. Its top-end WebSphere offerings start at $95,000 for Portal enable and $130,000 for Portal Extend.

IBM expects over time to bring this pricing in line with its new value unit model, whereby prices of its middleware products will be adjusted as users upgrade to faster processors.

The pricing change is likely to happen only after Intel Corp released its new Clovertown quad-core processor in the fourth quarter of this year.

IBM is motivated to push out a cheaper slimline version of its portal software to compete against entry-level mid-market portal offerings from Microsoft Corp and Oracle Corp.

IBM also has an Express line of portal offerings under the WebSphere name. But Portal Server is different in that it is more full featured since it shares the same core portal engine as IBM’s high-end enterprise portal products. In contrast the Express product functionality has been trimmed down substantially for easy use and installation.

IBM has not yet announced a new version of WebSphere Portal Express. The company had earlier stated its intention to merge its Workplaces Services Express offering with Portal Express as part of a new 6.0 release of the product.

WebSphere Portal Server runs on Linux, Windows and Unix platforms. A Z/OS version is expected later this year.