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THEY are among the new, new things: application service providers, or A.S.P.'s, companies in the business of renting software to corporations over the Internet.
The inclusion of Oracle and Microsoft shows Amazon heading toward large business customers with its variety of cloud computing services for renting software, storage space and processing cycles.
And businesses say they are reaping substantial savings by renting software remotely rather than buying it and installing it on site.
Microsoft started Azure to try to hold on to corporate customers that Amazon wants to pry away, and has struggled for years to adapt its business from selling individual software packages to renting software over the cloud.
The IPO was ten times oversubscribed, thanks to buoyant retail demand.Britain's Cable & Wireless announced an alliance with Microsoft to create an applications-service provider, renting software to small businesses over the Internet.
The profit margins from renting software in the cloud are not as high as selling a license to customers, and Microsoft investors have always counted on the company to generate exceptional profits.
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Thus, instead of selling software licenses, software vendors can rent software as a service to customers.
Companies rent software over the air, rather than buying it with expensive maintenance contracts.
Salesforce.com allows businesses to rent software and use it online rather than buy software packages that require installation.
The service will also include an online store where people can offer or rent software for use in the Hewlett-Packard public cloud.
I.B.M. also said it is negotiating new price agreements with application service providers, companies that rent software to customers via the Internet.
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