HyperOffice wisely doesn't compete head-on with office software from IBM or Microsoft Corp.Instead, it targets customers who don't want the costs and headaches associated with hosting such software.

"It is unlikely to be the across-the-board choice in a large enterprise, but it could be in a smaller company," says Wohl. "Larger enterprises might like it for remote locations, telecommuters and projects that include both employees and outside contractors."