Microsoft unveils beta version of Office 2003

SEATTLE- Microsoft, which expects more than 500,000 its customers, developers and software partners to snap up the free second beta version of Office 2003, is no longer describing the product as a 'suite' of applications. Instead it call this as a 'system' that includes more than the standard quartet of Word, Excel, PowerPoint and Outlook.

Office is Microsoft's second-most profitable business after Windows, its widely used computer desktop operating system.

The company is now including its Web page authoring software FrontPage in the Office family as well as two new products: InfoPath, which lets users create forms for collecting and gathering Web-based information; and OneNote, a note-taking application.

Outlook, the e-mail, contacts and calendar-managing program, now includes an e-mail spam filter. A slightly more advanced version called "Outlook with Business Contact Manager" will also be released.

Microsoft is also building digital rights management technology into Office, which will let users, control access to documents they create.

The beta 2 kit, which includes a beta version of server software that is needed to enable the collaborative features of Office, consists of 12 CD-ROMS.

Microsoft has not yet given a specific date for the launch of Office or announced pricing.

This summer's release of Office will also mark the first major release of software since Microsoft's transition to a new licensing program that encourages customers to pay yearly fees for the latest versions of software.

Analysts have said that the main challenge for the Redmond, Washington-based software giant is to convince users that the newest version of Office is worth the higher premiums that they pay to participate in the Software Assurance program.

Although Office was pulling in more revenue than Windows in mid-2001, its sales have fallen behind those for Windows.

For the quarter ended Dec. 31, the software division responsible for Windows had $2.5 billion in sales compared to sales of $2.3 billion for the Information Worker division that produces Office.

© Reuters