IBM claims its new intelligent blade server will reduce security threats – such as Denial of Service (DoS) attacks and viruses – while helping server providers manage network traffic better.

It says consumers are using advanced communications like streaming video on handheld devices, and naturally enough want them to be virus-free and fast. But it’s a challenge for service providers.

IBM’s research found severe computer vulnerabilities were up 28% in the first half of this year, the first such increase since 2004.

Its new blade is supposed to reduce these threats by doing real-time analysis of network activity so malicious traffic can be diverted.

It’s also supposed to help carriers manage and prioritize network activity like video sharing and web traffic for maximum performance, minimizing end-user delays.

Seems the BladeCenter PN41, which will be available in October, is the first blade in the industry to support Deep Packet Inspection (DPI) technology from CloudShield, a network services management and security provider.

That apparently means it can examine the packets of data streaming across the Internet or corporate networks more deeply so they can be routed for maximum performance while preventing security threats.

IBM imagines service providers using the blade to consolidate network appliances.