BetaNews | Microsoft Security Pricing Irks Partners
We talked about Microsoft’s recent entry into the security software market here. While we noted that Symantec and McAfee appeared concerned, we also questioned whether consumers would pay Microsoft to defend against viruses and worms exploiting Microsoft’s Windows operating system. It appears to create a moral hazzard for Microsoft – do they improve Windows or let it stay buggy so they can sell more security software?
For now, at least, its partners and competitors in the security space are concerned that Microsoft is pricing too aggressively and aiming for a large chunk of market share at their expense.
BetaNews | Microsoft Security Pricing Irks Partners
When Microsoft first hinted that it would enter the security software market three years ago, the company’s partners began to worry behind closed doors about the implications. With Microsoft’s security push now in full swing, the doors have opened and once bedfellows have turned adversaries.
Security was also the central focus of Microsoft’s TechEd conference in Boston this month. The company unveiled a new security software brand called “Forefront,” comprised of its Antigen product line and Microsoft Client Protection — essentially an enterprise version of Windows Live OneCare.
Windows Vista, meanwhile, will have built-in malware and spyware protection through Windows Defender, along with a beefed up firewall. The new efforts may be good news for Microsoft customers, but the company’s partners are seeing an already-competitive market being invaded by the 800-pound gorilla.
“It’s bad enough that Microsoft is getting in to all aspects of security. But now they are going to kill their competition through predatory pricing,” explained Sunbelt Software CEO Alex Eckelberry in a blog posting on Tuesday. Sunbelt makes a number of security solutions for both enterprise and consumer customers. The company also recently acquired the popular Kerio Personal Firewall utility.
Eckelberry notes that Microsoft has priced its products 50 percent below the security market leaders like McAfee and Symantec. Predatory pricing occurs when a dominant firm sells its products at a loss to drive competitors out of business, and is then able to raise prices beyond standard market rates.
Like this article? Why not try out:“Alex contends–and I would agree–’that Microsoft is endangering the entire security ecosystem,’” commented Jupiter Research senior analyst and Microsoft pundit Joe Wilcox. “No question: Microsoft is competing with its security software partners, and the company is doing so through aggressive pricing.”
