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By Joe Wilcox, 13 February 2003 10:02

NEWS Microsoft is to release a second test version of a crucial upgrade to its Office desktop application software. The initial test release of Office 11 - the codename for the product - was shipped to about 12,000 testers in October. In a familiar pattern, the software titan is expected to make this second testing version more widely available. Microsoft has taken a similar approach with past upgrades to Office and its Windows operating system. Office 11 Beta 2 will be geared more toward enterprise customers, said Microsoft executives. This new version of Microsoft's cash cow comes as analysts question how well the software will be received by customers. While Office still controls more than 90 per cent of the desktop office market, customers say they see fewer new features that would compel them to upgrade to the latest versions. Some customers have even investigated lower cost alternatives. Although a new licensing plan will help keep customers in the Microsoft fold, any slump in sales could make a big impact on the software maker's balance sheet. Office contributes nearly one-third of Microsoft's overall revenue. With Office 11, Microsoft's new strategy is to focus more on features targeted at businesses, as the company tries to expand its reach into larger customer relationship management (CRM) and enterprise resource planning (ERP) applications to complement its broader product lines. The new Office 11 Beta 2 is expected to include two new Office products, OneNote, a new note-taking application, and InfoPath, a tool for building and sharing Extensible Markup Language (XML)-based forms. Only a small number of testers were given InfoPath, formerly codenamed XDocs, with Beta 1. Microsoft has not finalised bundling plans for OneNote or InfoPath, which could ship separately from the main Office package Like Beta 1, the new testing version is expected to include the Access database, Excel spreadsheet, FrontPage website creation and management software, Outlook email, contact and calendaring application, Publisher content creation package, PowerPoint presentation creator and a word processor. Testers will be able to take advantage of new digital ink capabilities that allow users to write on screens using a stylus device. The support is available in portables running Windows XP Tablet PC Edition.