Microsoft announced the move Wednesday.

"We said last summer that Titan will be out in summer 2007 and it will," said Brad Wilson, general manager of Microsoft Dynamics CRM.

Titan, which will probably be officially known as Dynamics CRM 4.0 will be the first Microsoft CRM release based on a multitenant architecture and using a single code base to support three types of usage -- on-premise, hosted by partners or Microsoft. The Microsoft-hosted offering will be called Dynamics Live CRM, the third member of the vendor's growing Live software-as-a-service (SAAS) product family, joining Windows Live and Office Live.

Multitenancy is the ability of a SAAS vendor to host multiple customers' applications on a single server instead of dedicating servers to individual customers. Since multitenancy requires fewer servers, it's a cheaper way for vendors to run their hosting operations and they can pass some of those savings to customers, offering them a less costly service.