A Web-based service will offer software for rent from September 7.

Initially it will offer Microsoft software followed by applications for accounting, security, design and CRM. AIE Technologies is offering the rental software at www.Software4Rent.com.au

Company CEO Garry Ohlson said the company is competing against the 'older style' application service provider (ASP) model, where registration is manual.

"[These offerings] are only available to companies with a minimum of 20 staff, and prepared to sign a minimum six-month usage contract," Ohlson said.

"From my perspective, we are competing against people's mindsets of wanting to physically 'own' software, but as broadband becomes more prolific and engrained in a person's daily activities, this perspective will change."

Ohlson said many organszations and individuals can't justify a high licence cost for their perceived low or private usage.

"So rather than buy it, many individuals borrow or download a copy illegally, but now we can give them the option of renting it online very easily and cheaply," Ohlson said.

Known as 'software as a service', this model offers applications as a utility - similar to electricity, water or gas.

"You should only have to pay for software when you use it," Ohlson said.

"It is now quicker, simpler and easier to rent the latest and current versions of software legally, on demand, than go to the trouble of locating software that can be copied."

Microsoft Australia licensing product manager Thomas Kablau claims that Microsoft has around 62 direct Service Provider Licensing Agreement (SPLA) partners in Australia today that offer Microsoft products on a rental basis.

"Software 4 Rent is an example of an innovative program giving users access to the latest technology anytime or anywhere," he said.