In technical terms or in software terms, where it is being most frequently used these days, Beta means a "training period version" or simply a "trial version".
Beta is actually the second of the Greek alphabets, but when in the English language it means "second one in terms of importance."
This quite rightly justifies naming the first or under-test versions of any software by that name. Beta testing is the last stage in development of a program, after the software is built successfully. The software is put on a test site and is checked for any inconsistencies and malfunctions. The run time errors, bugs and crashes are noted down before the product is actually made available for selling purposes.
Beta version is the last stage in the software testing period, and at the same time it is the first stage in the product release.
Beta version of any software is an unstable version, that's under testing but it contains all the features that the original software will contain. It can be a little slow and error prone but then this is the reason for its existence which is error, bug and crash reporting and correction.
Usually the beta versions released in the market are marked with a 'b' in the version name. For example if you are planning to release an enhanced version of your already existing software 'sw6' and you plan to name the new and better version as 'sw7' then you will probably release the beta version of the software as 'sw7b' or the likes.
This will be a global testing period for your software, and it will include its real time usage by people all over the world. Such testing prepares you with any loopholes that were missed or discarded during the development and in-house testing phase, but are important nevertheless.
This phase, being the last stage of software testing, is also known as 'Beta Testing'.
Here again, as the meaning of the word 'beta' it is the second and the final round of testing. The former one is known as 'alpha testing' is the in-house testing, that is done by software testers employed by the concerned firm. Beta testing is usually done by general public, running the software in real environment as customers and then providing a fruitful and valuable feedback.
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