The computer-aided design (CAD) service targets manufacturers, many of whom outsource design and manufacturing to third-party providers. It allows participants from different companies and locations in the product design process to share access to design files held in a centralised Internet-based store. They can collaboratively view, discuss and amend a shared design in real time, all working on a single, version-controlled copy of the file.

The client software is a fully-featured, 3-D solid modelling design package. It runs in a browser using ActiveX controls, part of Microsoft's Windows-based software component architecture. Users can download the software when they sign up for the free-of-charge evaluation period, and it can be used without being logged in to the online service. But Alibre is confident most users will also want to take advantage of the shared storage and online collaboration.

"We're giving away something people pay $5,000 to $20,000 a seat for," founder and CEO Paul Grayson told ASP News Review in a briefing. "We're giving away the software, we're selling the service."

Currently in public preview and due for production launch in March, the Alibre Design service costs $100 per user per month, or $1,000 paid annually.

Microsoft chose the Alibre Design service for the showcase presentation because of its reliance on Windows 2000 features such as the COM+ component architecture and ActiveDirectory directory services. The service is hosted by Microsoft-only hosting provider Data Return.

Richardson, TX-based Alibre was founded in 1997 by Grayson, the founder and former CEO and chairman of graphics software vendor Micrografx. It is backed by August Capital, Centerpoint Ventures, and private investors including Ben Rosen, chairman and co-founder of Compaq Computer.