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The idea is to sell Internet access as well as a cluster of goods and services — from extended warranties to leased software programs, perhaps even a Gobi credit card.
Leased software and other Internet services costs came to $100,000.
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USInternetworking, a company that leases software over the Internet, said that it would receive a $100 million equity investment from Bain Capital.
In the mid-1990's, the notion that companies would lease software packages via the Internet for a monthly fee rather than buy multimillion-dollar systems was championed by a group of companies known as application service providers.
Catapulse, which is closely held, was begun a year ago by Rational's two founders -- Paul Levy, Rational's chairman, and Michael Devlin, its chief executive -- to lease software development tools over the Internet and to let software developers share information about projects on the Web.
Last month Burgum launched a no-money-down deal letting businesses lease software, hardware, support and services.
SaaS provider: a SaaS provider rents resources from IaaS providers and leases software as services to users.
They know that large companies, facing shortages of skilled high-tech workers and wanting greater flexibility with their information-systems budgets, are more willing than ever to lease software from outside suppliers that link them to distant data centers.
Yet the roadside is littered with companies that tried to cash in on the idea of leasing software over the Internet.
Yet in as many as a quarter of all leases, software vendors, for competitive reasons, discount the purchase price to offset all or part of the financing costs.
Copier Services filed a lawsuit against Xerox in 1994 saying it violated antitrust laws by refusing to sell parts or manuals or lease diagnostic software to Copier Services.
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