…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.
Talkback
Big fat hairy deal. I use a free firewall, free anti virus software and a free ad/spyware detector on my Windows installation and I don't get any problems at all. Why should I part with hard earned money for products when the free versions do the same job more than adequately?
If it wasn't for M$ and their"swiss cheese" software you would not need all this extra protection. I would sooner spend my money on a secure OS than have to pay an exorbitant price for it and then pay the same company to protect it from their own mistakes.
McAfee, Symantec and others really have only one choice. Get their acts together as far as their neglected non-Microsoft related products are concerned and start promoting and pushing "real modern security (tm)" total solutions. Trying to beat this new competitor with a huge war chest on its own terrain in a head-to-head match of its own choosing is something any strategist will advise about is to not go full frontal but rather circle around and get in from behind (or the bottom, aka: the OS).
To sum up: they've shot themselves in the (standing on one leg) foot by neglecting other markets. They can choose to limb on and eventually tumble over or change the very feet they stand on.
As Microsoft are becoming ever more intrusive, with their so called 'Windows Advantage' perhaps users may consider decining to use the apparently even more intrusive & probably horrendously 'bugged' & over hyped, over large, Windows Vista.
Which will apparent necessitate companies & individuals purchasing new PC's. Each incarnation of Windows supposedly fixes bugs from the previous incarnation, yet always seems to arrive with some new bugs of its own. Windows XP became reasonably user friendly when Service Pack 2 arrived. The 'Windows Advantage' semi-spyware has made it downright irritating despite Microsoft making the necessity to verify your software & PC once a fortnight, intstead of the horrendously irritating, one a day. Have these US of Americans no concept of what makes their company extremely unpopular. Semmingly not.