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The first test version is actually a technical beta, which means the release will be strictly controlled for a number of pre-selected testers. The second beta release, due for early in 2006, will be more widely available.

Among the features highlighted were a new ToDo bar appearing at the right of the Outlook client, integrating task-basked capabilities with the rest of Outlook. For example, with a SharePoint-based Calendar, meetings could be created within a person's schedule straight from their task list.

This was related to another new feature - the overlaying of different calendars, for example viewing your personal calendar with a group-based calendar. Part of simplifying group collaboration, it is intended to help the co-ordination of teams.

Also highlighted was the greater visibility of audit trails - the origin and security status of emails and other variously received documents becoming a greater part of the interface.

Attachments can also be previewed in the viewing pane. Before this prompts the intake of breath over security concerns, it was emphasised that only a specially loaded preview of the document would be displayed, the full application would not be run. Pictures or PowerPoint slides, for example, would be highlighted for easy visibility.

The change that

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drew the most positive response from the attendees - the first time I have seen the edit of a spreadsheet draw applause - is the richer tabbed (and context sensitive) interface. Separate tabs, such as 'Sheet', 'Formatting' and 'Data' collect together relevant functionality with little button icons given more clear prominence. New ways of charting and highlighting spreadsheet cells were demonstrated (pictured).

There is also a rethink on the change-tracking interface, specifically, helping to avoid the embarrassing release of documents that still contain the original revisions. A new interface will summarise and manage exactly how much meta-information is present in a document.

Finally, we were told that the Windows Workflow Engine would be incorporated into SharePoint to enable further process automation and document management features.

The over-arching message from the Microsoft executive was that Office and its related services would support the so-called 'digital workstyle' bringing together both structured and unstructured sources of data. This would complement, he said, the digital lifestyle exemplified by the Xbox 360 and its support for networked multimedia entertainment.

This, he maintained, followed up on Bill Gates' pronouncement back in 2000 of a Digital Decade, where the barriers between people and the data on the devices would be broken down.

While many of the features require a server infrastructure, the next Office would be fully operational as a stand alone product, Raikes emphasised later in a Q&A session. He described it as a 'good-better-best' solution - meaning new features would be available out of the box, but increased functionality would be provided by Windows Server System products, with SharePoint-based features being prominent. A full Microsoft server infrastructure would be required, however, to get the best out of the software.