Update: Microsoft and SAP rename Project Mendocino as Duet

SAP and Microsoft announced the official name for Project Mendocino on Tuesday and said they plan to ship the jointly developed software on schedule in June.

Mendocino will officially be called Duet, the companies said. The name is meant to suggest harmony between the two software makers, although some analysts are already posing the obvious question: Will they be able to sing in tune?

Duet will allow workers to access data and processes from SAP's business applications through Microsoft's familiar Office software. In a services company, for example, a worker will be able to record billable hours in the Microsoft Outlook calendar, and have that information sucked into an SAP application for processing.

SAP hopes the tighter links to Office will help bring its software to a broader range of users, who should not need extensive retraining because they will already be familiar with the Office applications.

Duet should also help to strengthen SAP against its main rival, Oracle, said David Bradshaw, a principal analyst with Ovum.

For Microsoft, Duet helps to solidify its leadership in desktop productivity applications by making its software a more integral part of a company's daily operations, he said.

The partnership between SAP and Microsoft isn't an exclusive one. SAP has also said it is working with Macromedia to develop better interfaces for its ERP (enterprise resource planning) software.

Microsoft and SAP were quick to note that Duet is being released on schedule. That's not surprising, Bradshaw noted, since many of Microsoft's bigger products, like Windows Vista and its SQL Server 2005 database, have been delayed by months or even years.

Indeed, even the next version of Microsoft Office, called Office 2007, has been delayed. Microsoft and SAP are "committed to providing support for Microsoft Office 2007 as soon as possible following its release," they said Tuesday.

Still, before Duet is even available the companies are talking about enhancements to come later this year. They'll include support for additional business processes, such as purchasing management and sales activity management, and additional local-language support.

The companies also kicked off a worldwide advertising campaign Tuesday, and launched a Web site for the product. The software will be jointly marketed, sold and supported by Microsoft, which is based in Redmond, Washington, and SAP, of Walldorf, Germany.

Pricing information has not yet been released. The companies will probably have to come up with a new type of licensing, particularly if SAP's applications will be accessed by a wider range of more "casual" users who don't typically use SAP's business applications, Bradshaw said.

To use Duet, users will need a license for Exchange Server 2003 and Office 2003 Professional, and a "relevant employee user license" for SAP ERP 2004, according to the Duet Web site.

Around 100 customers and partners have been testing Duet since early versions were released late last year, the companies said.