AristaSoft doesn't require customers to buy a software license, unlike IBM Global Services. AristaSoft has adopted a pure rental model, which typically is cheaper but doesn't let users take the software in-house if they don't want to use an ASP anymore.

That didn't seem to bother digital subscriber line product manufacturer Turnstone Systems Inc., AristaSoft's first customer. Denise Savoie, Turnstone's CFO, was interested in an ERP package, but the startup couldn't afford to buy, implement, and maintain the software. Savoie wouldn't specify costs, but ERP licenses typically cost from $100,000 to $1 million. AristaSoft charges $10,000 to $30,000 a month, depending on the number of users. That price includes maintenance, backup, storage, and troubleshooting.

AristaSoft says its concentration on the high-tech sector has allowed it to speed deployment to similar customers. It plans to expand into other vertical markets, such as electronics, within six months. Ultimately, AristaSoft says it plans to add 30 applications, ranging from E-mail to sales-force automation.

Three partners are helping AristaSoft round out its offering. Exodus Communications Inc. is providing data centers and backup services. Covad Communications Inc. is providing network connectivity. And Deloitte & Touche is helping with consulting and systems integration. AristaSoft remains the single point of contact for customers.