Office 12 to include XML file formats

By offering file sizes that can be as much as 75 percent smaller compared with Office 2003 files, the new file format can reduce data storage costs. Another advantage to smaller files is they take up less space as e-mail attachments or as downloadable files, thereby lowering bandwidth costs as well, company officials said.

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The new file formats also introduce improved data recovery capabilities including the ability to open and use the undamaged parts of a file when only one or two components are damaged in the cases of truncated e-mail attachments or damaged storage devices, they noted.

The new technology also improves security with the ability to strip out of files any identifiable personal information or confidential content, such as comments made in a document, before those files are moved out onto the network, Microsoft officials said.

Two weeks ago Microsoft chairman Bill Gates emphpasized the need for interoperability solutions during his "New World of Work" speech at the company's annual CEO Summit. The announcement of the new file formats is the first delivery on his promise made in that speech of "information solutions and IT fundamentals" that offer open XML standards along with out-of-the-box rapid development tools for corporate developers.

A positive aspect of the new technology is that it gives users a legitimate reason to upgrade to Office, something many have been searching hard for the last few years.

"One of Microsoft's motivations here is to keep Office moving forward. It is hard to think of these applications [in Office] serving up any more functions than they do now, so improving its 'integratability' offers a compelling reason to upgrade," AMR's Murphy said.

The Office Open XML Formats will be published with a royalty-free license allowing users to integrate them into an application, business process, or server product. Company officials said the license will make it easier for third-party developers to integrate the file format into their tools, better ensuring they can build products that have complete access to Office-based data.

Versions of Office 2000, Office XP, and Office 2003 are compatible with the new software, which can be downloaded by users of those versions for free. After the software is downloaded, users can open, edit, and save new files with the new format from within those earlier versions of Office, company officials said.