There's been little news regarding Microsoft's first customer-relationship-management foray since the company launched the product in January. Until now.

Redmond is prepping a minor upgrade, dubbed 1.2, of its MS CRM package to debut in the fourth quarter of this year. The 1.2 release is slated to include improvements to set-up; an enhanced Microsoft Outlook development environment; compatibility with Windows Server 2003, Exchange Server 2003, Small Business Server 2003 and the forthcoming Microsoft Office System 2003; and broader reporting capabilities via Crystal Enterprise 9, among other features.

Until recently, Microsoft had told customers and partners that its next release of MS CRM would be a minor upgrade, consisting primarily of localized versions for non-English speaking countries. Microsoft refered to this release as 1.1. But now, Microsoft has opted to go straight to 1.2 and provide both the localization and new features at the same time, a company spokeswoman confirmed.

Once Microsoft delivers 1.2, it will make good on the integration that it has promised between its CRM and other Microsoft Business Solution wares.

Microsoft informed its reseller and integrator partners that integration between MS CRM 1.0 and 1.2 with its Solomon 5.0 and 5.5 releases is now slated for the fourth quarter. Integration between MS CRM 1.2 and Great Plains 7.5 is also slated for the fourth quarter.

Microsoft told partners earlier this year that it had hoped to provide integration between MS CRM 1.0 and its Microsoft Business Solution products by mid-year.

Microsoft is simultaneously working on its MS CRM 2.0 release. But integration between MS CRM 2.0 and Navision 4.0 isn't slated until Q4 2004 or Q1 2005, Microsoft told its partners last week. The company has not yet determined when it will provide integration between Axapta and MS CRM 2.0.

Last week, Microsoft also told its channel partners that it is broadening the distribution mechanism for its CRM product, a move that met with widespread disapproval among Microsoft's partners. Previously, both the standard and professional SKUs of MS CRM were sold exclusively through Microsoft Business Solutions CRM-certified partners. As of Dec. 27, 2003, however, Microsoft will allow all of its channel partners to resell the product under Microsoft's volume-licensing program.

"By the end of this calendar year, Microsoft Business Solutions will begin offering both Microsoft CRM Standard and Professional through Microsoft Corp.'s Volume Licensing programs," Microsoft informed its channel partners in a note dated July 23. "Customers will be able to acquire Microsoft CRM the way they get other Microsoft products, with the option to add it to their current licenses while taking advantage of volume discounts in Volume Licensing. This will make license acquisition easier for the customer, shorten the sales cycle and improve close rates."