Seattle: Thousands of techies will be waiting with baited breath today at the giant RSA security conference to learn whether Microsoft will launch new generation anti-virus software. Microsoft Chairman Bill Gates is scheduled to deliver a keynote address today. Whether he provides full disclosure, or just more tantalizing hints, Microsoft's partners and competitors will be listening.
Microsoft’s entry into the burgeoning tech-security market is one of the hottest events anticipated here. Some of the competitors are feeling the jitters and some are ready to face to the heat. “I’m looking forward to Microsoft showing up with a product," says John Thompson, CEO of Symantec, the dominant supplier of anti-virus products. "It's impossible to compete against a ghost." Microsoft's imminent entrance into the security-tech space has already spurred market leaders Symantec and McAfee to juice up their consumer offerings.
Symantec will add anti-spyware software to Norton Anti-Virus this quarter. It is also working on so-called behavior-based protection designed that will also sift web traffic that behaves suspiciously rather than merely blocking known viruses which most anti-virus programs do.
Thompson declined to say whether Symantec consumers would have to pay more. But he suggests Symantec's current pricing should hold up to any Microsoft discounts. No. 2 anti-virus maker McAfee already includes spyware protection in its basic service and will add behavior-based protection later this year — for no extra cost.
"We've stopped millions of viruses this year, and Microsoft hasn't stopped one," says McAfee President Gene Hodges, "So let's fight."
Microsoft’s entry into this market began two years back. The company acquired Romanian anti-virus maker GeCad in mid-2003, anti-spyware maker Giant Company Software last December and anti-virus tools maker Sybari last week. Microsoft has yet to fully disclose how all of the pieces will mesh. But it is widely speculated that Microsoft will begin selling anti-virus and anti-spyware subscriptions this year. And these products are estimated to be cheaper than that of Symantec.
Security is both a challenge and a sizable business opportunity for Microsoft. The company estimates that only 30% of consumers bother to keep anti-virus subscriptions up-to-date. Even so, the market for security software has mushroomed from nothing a decade ago to $11.3 billion this year.
Research firm IDC estimates annual worldwide spending on security software will top $16 billion by 2008. Capturing even a single-digit percentage of that market could mean hundreds of millions of dollars of fresh, recurring subscription fees. Symantec, McAfee and others are all bracing to take on the Microsoft juggernaut as it enters this lucrative market.
