Intalio, a private company that until now has been focused on providing open source systems for business process management (BPM), is launching a more ambitious product called IntalioCloud. With a combination of BPM and customer relationship management (CRM) tools for salespeople, Intalio is challenging Salesforce.com, the company that built its reputation on selling CRM services via online subscription (and which has more than 50,000 customers).

Palo Alto, Calif.-based Intalio isn’t ducking from the comparison, either. Its press materials include the slogan “No Limits,” a variation on Salesforce’s “No Software.” Intalio says there are three key differences. First, Salesforce is all about hosting the applications and data on its own servers, but Intalio offers several options — an offering hosted by Intalio, an offering that resides on a customer’s hardware, and a product built on Intalio hardware and maintained by Intalio, but hosted in the customer’s data center. (The idea is to provide the flexibility and low-cost of software hosted in the Internet cloud, but also offer additional security and control via a “private cloud” to those who want it.)

Second, business applications developed for use in Salesforce’s platform have to use the company’s proprietary programming language, while IntalioCloud is open to many languages such as JavaScript and Ruby. Third, Intalio says it provides 25 gigabytes of data storage per account, much more than Salesforce.

To put the new product together, Intalio just announced the acquisition of CodeGlide, a software company based in Buenos Aires, Argentina that developed CRM software, and ProcessSquare, a Munich, Germany-based company that developed a web service for BPM. The terms of the deals were not disclosed.

Intalio has been around for a decade, about the same amount of time as Salesforce. It has raised $42 million venture capital and currently has more than 500 customers.