RSM McGladrey is teaming up with AT&T, Great Plains Software and Compaq to launch a full-service ASP on Oct. 1 for companies ranging from start-ups to $300 million in annual revenue. Clients will have the option to choose lease, subscription or purchase pricing.

"We're focusing on small and medium-sized businesses because that's who we think fits the ASP model best," said J.B. Overstreet, ASP product development manager for RSM.

The ASP model is an easy way for small and medium-sized companies that can't afford it themselves to access the technology and expertise of large companies, he said.

The Minneapolis-based H&R Block subsidiary faces a slew of other firms vying for a piece of the white-hot ASP market. With research firms like Stamford, Conn.-based Gartner Group predicting that the industry will grow to more than $25 billion by 2004, it's hardly any wonder that the ASP market has seen a recent explosion of providers. The sobering news however, according to Gartner, is that by the end of next year, bankruptcy, lack of venture capital, mergers and competition will knock out 60 percent of the nearly 500 retail ASPs now in the market.

The ASP offering will initially host Great Plains Dynamics and eEnterprise, and will expand by year-end to host other solutions, including Great Plains Siebel Front Office, the firm said.

Rather than incurring the expense and taking the time to build its own data centers, RSM McGladrey will own and manage the equipment, which will be housed in AT&T Data Centers, Overstreet said.

"Partnering with AT&T makes sense, instead of building our own data centers and laying out all of the capital to set it up," he said. "They're taking care of the infrastructure and connectivity pieces -- they're experts at that."

The firm plans to target Great Plains' partners and resellers for the ASP service to reach end users in markets where it currently doesn't have offices. The service will be offered to businesses through resellers. RSM McGladrey has more than 30 Great Plains consultants nationwide.

As is typical of many ASPs, pricing will be based on the number of users, with per-user costs decreasing as the number of users rises. Dynamics will be priced at $99 per user per month, according to Overstreet. The eEnterprise and Front Office solutions will range from $240 to $255 per user per month for up to ten users, he said.

-- By Melissa Klein

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