September 30, 2003

Microsoft's Entry into the Anti-Virus Market Has Rivals Spooked

A short entry today about Microsoft's ability to "embrace and extend" Windows into the AV market - check out the article by BusinessWeek here - largely because one of its chief competitive weaknesses lies in Windows' battered reputation for being an easy target for viruses. Here's an excerpt:

    ...since Microsoft's (antivirus) products probably will be bundled into Windows, it will have a big advantage. Few believe that including antivirus software in Windows will violate antitrust laws. What potential rivals fear is that Microsoft will use its market power to thwart them. "The question is, will they play fairly or will they abuse their monopoly position?" asks Symantec CEO John W. Thompson. He and other rivals know they are facing a force more ominous than any virus. "When Microsoft enters an industry and includes the software in Windows, the sector disappears," says Steve Chang, CEO of antivirus software maker Trend Micro (TMIC ) Inc. It's a lesson the software industry knows all too well.
I guess I'd just as soon be able to get the updates right from the Windows Update site, like I do all the other patches I need for my PCs... right? Especially if I didn't have to pay anything extra for it. The AV crowd had better start thinking of better ways to differentiate themselves - a la Real Networks in the media player market - 'cause if Microsoft enters the business, their scorched earth policy won't leave many standing alongside them.

- Arik

Posted by Arik Johnson at September 30, 2003 02:33 PM | TrackBack