IBM is rolling out a new line of Power5-processor based servers that it says outperform rivals from Sun and HP.

The eServer models can support more than 250 virtual servers on one machine, IBM says. Its new p5 590 is up to 45 percent faster and costs as much as 45 percent less than its predecessor model.

The p5 595 has “doubled HP’s and Sun’s tested performance in key industry benchmarks, and shows a 95 percent performance advantage over HP and Sun in one of the most recognized enterprise resource planning benchmarks today — the two-tier SAP Sales and Distribution Standard Application Benchmark,” IBM said in a statement on Friday.

“With the introduction of these new eServer p5 systems, we are providing record breaking performance and giving clients the means to consolidate large Sun and HP server workloads,” added Adalio Sanchez, general manager, IBM eServer pSeries. “The leadership price/performance gap we have enjoyed for nearly three years has just widened to a chasm. Today, we are establishing new economics for the server industry and delivering unparalleled value for our clients.”