Security Software Worlds Collide
06/29/06 - 10:25 AM EDT
Katie Dean
"The one that is most ready [for the consumer battle] is McAfee," he says. "They've got a lot of time and experience delivering what the other two are just getting ready to do."
McAfee has four levels of security products in its Falcon suite, which will range in price from around $40 to $100, according to a recent Soleil note. In addition to selling software as a service to consumers, vendors also are making deals to bundle security products on PCs at the point of sale, or selling security to Internet service providers, which then provide the technology to their subscribers. "McAfee is very strong with ISPs," says John Pescatore, a security analyst with Gartner, noting that one of their customers is Time Warner's (TWX Quote - Cramer on TWX - Stock Picks) AOL. "I think it's more important that they focus on protecting those ISP and OEM channels than releasing the newest products." The ISP channel is critical because as long as customers keep paying for Internet service, they are paying for antivirus protection, Pescatore said. "It's a much higher renewal rate." Gartner analysts don't own shares of the companies they cover, and the firm doesn't do investment banking. Still, analysts say that the ISP channel is where Microsoft could make gains. Microsoft is "very good at competing on prices," Yankee Group's Singer says. "[Price] would be the major factor when ISPs make a decision. That's certainly an area where Microsoft can look to gain a bit of market share." Microsoft has already inked a deal with Qwest Communications (Q Quote - Cramer on Q - Stock Picks) to provide broadband subscribers with OneCare services. Symantec's Norton 360 will be released in beta this summer, but the final product may not be ready until early 2007, depending on the success of the beta test and subsequent user feedback, the company has said.
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