The $10 per year ASP

It's a business plan that makes open-source software look downright expensive. BmyPC, a start-up application service provider (ASP), is set to offer hosted productivity apps for as little as $10 per user per year.

BmyPC's hosted applications are currently in beta, but complete services should be available within a few weeks, says company co-founder Eran Pfeffer. He expects annual prices for the service to range from $10 per user to $25 per user. Partners that resell the service are free to set their own pricing.

BmyPC plans to target small businesses, home offices and schools that want to reduce their software acquisition costs and maintenance costs. The BmyPC desktop resembles a traditional Windows desktop, except that files, folders and productivity applications are hosted on Windows NT servers in Digital Island's San Jose, Calif., data centers. Customers can access the hosted apps through a standard Web browser.

BmyPC is lining up partnerships with ISPs, ASPs and integrators that are interested in reselling the hosted service. The company also is seeking relationships with vertical-market software developers. Network Appliance and Cable &Wireless are already onboard. A deal with a Utah-based ISP is expected in September.

BmyPC has 33 employees. Marketing and sales are managed from Mountain View, Calif. The company's development team is based in Israel.