Sunday, November 23, 2008

Does Microsoft's free AV will put cloud over the current AV Industry?

AVG Sees Uphill Battle for Microsoft in Its Launch of Free Anti-Virus Software
AVG Replies to Announcement of Competitor's Replication of Its Anti-Virus Software Offering

Last update: 9:22 a.m. EST Nov. 21, 2008
AMSTERDAM, Netherlands, Nov 21, 2008 /PRNewswire via COMTEX/ -- AVG, a global anti-virus and Internet security software provider with over 85 million users in 167 countries, today responded to Microsoft's announcement of a free anti-virus software product slated to appear in mid-2009.
AVG, which for eight years has offered free anti-virus software to users worldwide, noted the multiple challenges Microsoft faces in supporting a free anti-virus software product -- chief among them the enormous overhead costs it will incur for customer service and support issues, as well as for ongoing product management and upgrades.
Microsoft will also likely contend with a severe backlash from dissatisfied channel partners, whose margins and unit sales will be negatively impacted as a result of the free product offering, AVG believes.
"For over eight years, AVG has recognized and responded to the growing global threat of malware by offering a free and comprehensive tool to combat computer viruses, spyware, malware and online threats," said J.R. Smith, the company's CEO. "Microsoft is clearly following our lead, which will certainly help combat basic and less sophisticated threats. But the real threat in this scenario is to Microsoft's own profitability and channel partner relations."
AVG also highlighted the challenges facing Microsoft to keep pace with the growing proliferation of new and increasingly onerous online threats. Microsoft often relies on its monthly "patch Tuesday" updates to refresh its current anti-virus product, leaving computer users vulnerable to botnets and other malicious attacks. Importantly, the free Microsoft anti-virus software will have even less protective features than its current OneCare offering - further heightening computer users' vulnerability to fast-spreading viruses and other threats.
Statistics highlight the escalating problem. Computer infections from malware are increasing exponentially. AVG's in-house research team notes that 50,000 variants are being issued every day - further pointing up the need for real-time protection.
AVG's LinkScanner feature provides up-to-the-minute protection against the very latest threats. What's more, AVG's award-winning anti-virus products have long been recognized for providing maximum computer security and online protection with minimal resource strain.
From a global protection perspective, AVG has a strong presence in established and emerging markets. The company's strategic growth plan includes the introduction of several new native-language versions of its anti-virus programs in the coming weeks. Moreover, the company's worldwide user-support community -- with people and small businesses from 167 countries -- continues to grow as the industry's only truly "self-help" network.
"The exceptional ease of use and simplicity of AVG's products have long been a strong sell for the channel, providing more security strength and functionality at a much lower cost than Microsoft's anti-virus offerings," added Mr. Smith. "Given these tough economic times, our resellers appreciate the robust product margins we offer and the vitality of our end-user community to help drive future sales."

About AVG Technologies
AVG is a global security solutions leader protecting more than 85 million consumers and small business computer users in 167 countries from the ever-growing incidence of web threats, viruses, spam, cyber-scams and hackers on the Internet. Headquartered in Amsterdam, AVG has nearly two decades of experience in combating cyber crime and one of the most advanced laboratories for detecting, pre-empting and combating Web-borne threats from around the world. Its free online, downloadable software model allows entry-level users to gain basic anti-virus protection and then to easily and inexpensively upgrade to greater levels of safety and defense in both single and multi-user environments. Nearly 6,000 resellers, partners and distributors team with AVG globally including Amazon.com, CNET, Cisco, Ingram Micro, Play.com, Wal-Mart, and Yahoo!. More information is available at http://www.avg.com.
SOURCE AVG Technologies

http://www.avg.com
Just recently Microsoft announced that they will offer free AV for Windows users, and so does this mean everyone will use Microsoft's free Antivirus instead of paid Antivirus software?
The real question is why Microsoft is offering FREE AV? If Microsoft's AV was great Antivirus software would Microsoft give it away for FREE? Their Microsoft's Office is NOT FREE, because they know they can make profit. The bottom line is Microsoft's AV is simply not the worthy competitor in AV Industry.

Microsoft was trying to persuade Windows users to use their Antivirus program for years and failed miserably; very few customers out there will use Microsoft's OneCare as its rated one of worse performing AV.

Even AVG's free AV don't detect much as some of the paid Antivirus like Norton, McAfee, Trend Micro, Kaspersky etc.. These free AV users out there are NOT using AVG free AV or free Microsoft's AV because they want to use it but rather they have to, they wants FREE AV and don't want to pay for it. Average computer users know that AVG or Microsoft's AV is not good as others that they can buy from computer shops or Internet.

Freebie users often don't pay for other software that they are using, therefore having freebie users as main market is No good for the software company.

I remember the free Antispyware companies like Adaware and Search & Destroy; both companies are now selling their software; and they are not doing well on their sale because their initial offerings were FREE base software. Once a free, then it will have to be remain as FREE otherwise average computer users will not use them again. Why would you pay for second graded software where you can get the best available software on the market for same price?

These freebie users will use other free softwares when free versions ceased, simply means freebie users will always wants freebies. Going from freebie to pay versions is not a good marketing strategy.

If you don't make any profit then you are out of the business is fundamental law of the business

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