Microsoft’s support site suggests turning off the Sync Services function in the Outlook program preferences before quitting Outlook - and then trying to run the Office updater. The Microsoft Database Daemon is a small utility program used with the suite’s reminders and notifications. Although it has been largely sidelined in recent versions of OS X, the Sync Services tool was intended to help synchronize contacts and calendar data from Microsoft Entourage and Outlook with mobile devices connected to the Mac. In some versions of the Microsoft Office for Mac suite (including Office for Mac 2011), Sync Services and the Microsoft Database Daemon are two components that work in the background, but still need to be closed to install a program update. Clicking the Close Applications button never works, and even when I go into Activity Monitor and try to close the apps, I have to try several times before I can install the update.

When there is an update to my Office for Mac, the installer is never able to close Sync Services and Microsoft Office Daemon.

Microsoft office update for mac 2011