IBM and Red Hat announced they have opened a showroom at the IBM Solutions Centre in Sydney to coincide with release of Red Hat Enterprise Virtualisation 3.0. The venue showcases cloud computing solutions resulting from the companies' collaboration, according to a statement released by the companies. That relationship extends back ten years. The companies claim that the Red Hat Enterprise Virtualisation 3.0 on IBM System X hardware represents a lower TCO compared to other virtualisation solutions. The new offering is based on the Kernel Virtual Machine (KVM) project, which is supposed to increase VM density over other x86-based virtualisation technologies. The companies do not have plans to open a similar showroom in New Zealand at this point.