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Only about 35 percent of large businesses plan to move up to the latest version of Microsoft's Office software next year, according to a new survey of chief information officers.

The Merrill Lynch survey polled CIOs at 75 U.S. companies and 25 European ones on a number of issues, including whether they were "likely to upgrade to Office 2003 in the next year."

A total of 65 percent said "no," a result Merrill Lynch attributed to complex new server-based functions--including capabilities based on Extensible Markup Language (XML)--included in the new version of the productivity software. "Without a new killer app in Office, the upgrade cycle looks to be gradual until new XML-based technologies take hold in the broader market," according to the report.

A Microsoft representative said initial sales of Office 2003 are in line with expectations and well ahead of early results for the previous version of the software, Office XP.

Source: CNET News
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