…they have an ongoing billing relationship with — to provide them with an easy way… to subscribe to a security solution that is more than just the software. In that space we are the market leader, and that's what we're really focused on.
Competitors such as McAfee have a similar focus. McAfee has a deal with AOL to deliver security software free to its customers, for example. Is your strategy different?
McAfee has started to do a little bit of the same thing that we have done for the last six or seven years. Still, largely, for both McAfee and Symantec, their revenue comes from selling licences, and the subscription business is a tiny fraction. It's a marketing tool for them. They give away free software, and they hope those users will upgrade from plain antivirus to a suite.
What's the key difference between getting security software from a store and getting it from a service provider for the consumer?
The service provider business means that your ISP will offer you a security solution that they can continuously adapt to the requirements of their customers, through what we call "profiles".
For example, online gamers could be a profile, and the ISP can change the configuration behind the online gamer profile. When [you're playing] "World of Warcraft", and you need to open a particular port on the firewall to enable that game to work properly, the ISP can do that. You just find when you install the product that it works, and you don't even know that somebody has changed this online gaming profile.
Who pays you the cost of the security software?
The ISP is our partner and our customer. The ISP may finance it by charging their customers, or they may bundle the security service into their broadband access.
You believe that's the way of the future, instead of retail?
Well, all the customer surveys we have done — very conclusively and with a high margin — prove that the people who buy security from the service provider feel it's significantly more convenient and easier for them on an ongoing basis.
Another area F-Secure likes to talk about is the threat to mobile phones. Is this a real threat, or is this hype?
Probably a bit of both, in the sense that it's so difficult to communicate exactly what the level of threat is. There has been mobile malware for a little bit over two years. The number of different viruses is over 300 today — a significantly faster growth than we saw on the PC side in the early days.
All the virus samples we get come from either mobile operators or mobile device manufacturers. So basically all the samples — with the possible exception of fewer than five — have actually been in the wild.
Almost all of these viruses are for Symbian operating systems. When you have a Symbian device, you are vulnerable if you allow the malware to be installed. It will typically arrive in an MMS message or over a Bluetooth connection, at which time you see a message asking you to approve the download and installation of the application.
Do you own a Symbian phone?
Sure, and I have never received a virus.
Is mobile antivirus the next big business opportunity?
We believe that it's an important platform.
Microsoft is stirring up the security industry. It's launched OneCare in the US, it's going to launch it in Europe and it'll have enterprise products as well. Does that concern you at all? Or are you saying, "Bring it on!"
We obviously say, "Bring it on". At the same time, we are naturally concerned about pricing. If Microsoft starts to offer their solutions at significantly reduced prices to gain market share, and then raises prices again after a few years, that obviously is a business issue all the companies have to tackle. Otherwise, Microsoft is a welcome addition, and even if they achieve a significant market share, they won't be as big as Symantec is today.
So you've seen how they entered the US market — $50 [to cover] three PCs?
That's fine, it is a good business for everybody concerned.
