This news via InfoWorld.

Microsoft, author of the Treo 700w operating system, is developing a new product, code-named “Crossbow,” which will incorporate features such as instant messaging, a Microsoft executive confirmed Monday.

Crossbow will have strong links with Office 2007 and Exchange 12, Microsoft’s pending new office application suite and e-mail server, said Pieter Knook, senior vice president for the mobile devices and telecoms sector. Crossbow would be the successor to Windows Mobile 5.0, released in May 2005.

Crossbow will take aim at the Symbian and BlackBerry operating systems. The OS will contain a new mobile version of Office Communicator, an Office 2007 enterprise communications application, that includes instant messaging on public and private networks, Knook said.

“As the Office [2007] PC versions of those applications improve, we’re tracking that on the Windows Mobile side,” Knook said.

Knook said it’s premature to say when Crossbow would be released, but that the company plans for an annual mobile OS release. Mobile operating systems are also complex to implement since some operators must adjust their billing systems to accommodate new services, which can mean a six- to 12-month delay after a release, Knook said.

Microsoft is hoping to nudge BlackBerry aside on costs and convenience for administrators. Knook estimates an enterprise deploying mobile e-mail with 20,000 users could save US$1.5 million in software purchases alone, plus additional costs on licensing over BlackBerry, he said.

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