10.50.1600.1
major.minor.build.revision
MAJOR changes is backward incompatible and require changing project name, path to files, GUIDs, etc.
MINOR changes is backward compatible. Mark introduction of new features.
REV for security/bug fixes. Backward and forward compatible.
eg. In SQL server 2008 RTM version number is 10.00.1600.22 and In SQL server 2012 version is 11.00.2100.60
First field is changed due to change in project name i.e. 10 and 11
In SQL server 2008 R2 RTM version number is 10.50.1600.1 and In SQL server 2008 version is 11.00.1600.22
Second field is changed due to introduction of new features.
Third field indicate build(developed)
Forth field indicates revision i.e. hotfixes applied...