Now that computing power has become dirt cheap and Internet usage ubiquitous, software developers are racing to put cutting-edge business apps into the hands of small firms in ways that could give a lift to the economic recovery. The trend has grabbed the attention of the tech giants, with Microsoft and IBM hustling to prepare hosted services.

Most small-business owners don't realize this yet, but a mother lode of technology that can free precious cash and manpower is available to them as in no other time in history.

Small firms typically buy basic clerical and accounting software in shrink-wrap boxes and run them on a company computer. The owner, or a harried employee, invariably gets pressed into service as resident tech expert.