My company, and lots of others on the forum, need a server side mail merge.
Forget Microsoft Word. It is old fashioned, unnecessary and cumbersome to transfer data from a server based system to local software. Not to mention that you have no way to track the letters in the contact history later.
Letter writing should all be done in the browser, as emails, invoices and offers.

This is how it should work:

- Pick a contact or a group of contacts
- press a Write a letter button
- choose a template
- press print directly from the browser
- activity with link to the letter is saved on each of the contacts

It should be possible to create and edit templates.
They should look something like this:

Header with your company logo and name

Date
[Receiver name]
[Address]

Dear [name]

[letter body]

Sincerely,
[User]

If you choose to develop this, please don't convert the letter to a Word document on the server! Save it as a simple database entry. It is just text, that should be searchable. Like emails, notes, invoices etc.

It is about time to abandon the idea of a locally installed MS Word as the only way to produce a paper letter!
Act has done it, Zoho has done it, most FileMaker based CRMs has done it.