Security threats Toolkit

Security customers getting more for their money

Joris Evers CNET News.com

Published: 30 Aug 2006 10:45 BST

…components of Symantec's current security, PC optimisation and backup products. Norton 360 is due by the end of March next year.

Two key OneCare features, yet unmatched by the competition, aren't actually security features: OneCare includes free telephone tech support and can be installed on up to three PCs at no extra cost. Both Symantec and McAfee charge for phone support as well as for multi-PC packages.

A force for innovation
The immediate benefit of Microsoft's entry into the market is lower prices, said Jonathan Singer, an analyst with Yankee Group. But that's just for now. In the near future, consumer desktop security is bound to be more innovative, he said.

"Microsoft's entry into the market is going to force innovation on other security vendors, who are going to need to come up with some great technology or find their viability in question," Singer said.

It appears consumers have no real qualms about buying security software from Microsoft, the maker of the very software they are trying to protect. This could undermine the brand advantage that Symantec and McAfee claim to have.

"There was a brand premium consumers were paying," Swenson said. "Everybody recognises Microsoft. A lot of consumers associate Microsoft with good software and Microsoft is able to take advantage of its brand recognition."

Microsoft took market share from all incumbents, according to NPD's data. It particularly gained on market leader Symantec, which saw its unit share for security suites drop 10.7 percentage points in July compared with May, according to NPD. At the same time, McAfee lost 2.7 points and Trend Micro dropped 1.4 points.

Symantec noted that it still leads the market, pointing out that NPD covers retail sales only and does not include sales through Internet service providers or PC makers. "Consumers have shown that they're willing to pay for the superior protection that the Norton products provide," a Symantec representative said in an emailed statement.

McAfee was bracing for a big bang from Microsoft, but it hasn't happened, said Bari Abdul, vice president of marketing at the company. "I expected a lot more market share gain, to be honest," he said. "It has been pretty pathetic."

Abdul argues that both McAfee and Symantec remain much stronger brands in PC security. "Consumers know the value they get from us," he said, even speaking for his archrival Symantec. "I don't think consumers really believe the story that Microsoft is a provider of security software."

Yet, McAfee said it is not going to rest on its laurels. "We compete with Microsoft. If they don't get it right the first time, it doesn't mean they will give up. We need to be on our toes all the time," Abdul said.