The main reason why some businesses shy away from using online office suites like Google Docs or Zoho Office is because they don’t want their confidential data to reside on third-party servers.

To answer this common concern, Zoho has a come up with a solution that will let enterprise customers install Zoho applications in their local environments without having to move any of the data outside the organization’s firewall.

The deployment of Zoho web applications on-site will happen through VMWare vSphere and that should give enterprise users the best of both worlds – the data stays safe in their own data centers and they still get to enjoy all the other benefits of cloud computing like easy deployment, installation of future software upgrades, etc.

A recent NYT report – Zoho: Thriving Amid the Giants – says that Zoho’s paying customers mostly include small businesses, typically with 40 to 200 employees and that Zoho charges up to $25 a user per month.