Commercialisation of malware drives spending on anti-virus products

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17 May 2006 News

Virus and other malware attacks directed against individuals or enterprises are increasingly motivated by financial gain, which has led to a higher number of attacks, which are potentially more dangerous. This escalation of security threats is driving IT security investments. Moreover, with the imminent entry of Microsoft as a full-fledged IT security vendor, established anti-virus vendors are expected to pull up their socks and start marketing their expertise and strengthening channel relationships.

According to Frost & Sullivan (www.networksecurity.frost.com) the anti-virus market earned revenues of $3,27 bn in 2005 and expects it to reach $7,49 bn in 2012.

Virus writing and hacking are no longer perpetrated only by delinquent individuals but are being committed by organised 'cybercriminal networks'. Fervent activity on this front has led to a higher number of attacks, which can potentially cause harm beyond the disruption of computers and networks. Awareness of this situation drives enterprises' and individuals' investments in anti-virus and other security technologies.

"Viruses have increased in spread and potency due to their 'underground commercialisation'," notes research analyst Katie Gotzen. "Criminal organisations are making greater use of malware attacks for financial gain and hence it is imperative for both enterprises and private users to protect against them."

In 2005, sensing the opportunities in the IT security market, Microsoft began to strategise for a complete market entry. The company entered the enterprise server security market by taking over Sybari with its successful brand, Antigen. Microsoft has also launched beta versions of new consumer and enterprise solutions and is expected to price these very competitively.

Existing participants are likely to feel threatened by Microsoft's enormous marketing and branding power as well as its lower prices. Market prices for anti-virus solutions are expected to be driven down, creating turmoil in the consumer market.

"Established vendors should position themselves along their expertise in the security market," says Gotzen. "In order to retain channel partners, as well as business and private customers, existing players should deploy loyalty marketing. Another option is focusing on growth in areas where Microsoft is not competing, such as security solutions for Linux.

For more information contact Srividhya Parthasarathy, [email protected]

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Commercialisation of malware drives spending on anti-virus products

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