2/09/2005

Microsoft's purchase of anti-virus companies

In an article from USA today, Microsoft is buying Sybari Software a manufacturer of anti-viruses. This may bring the demand down for more competitive anti-virus producers such as McAfee and Symantec. Microsoft is dominant in computer programming. Microsoft has made computer’s needs revolve around their products. If Microsoft starts building anti-virus technology into their computers, other anti-virus manufacturers could be completely knocked out of the market. Though, in the article it stated that the investment in the Sybari Software Company will only reduce McAfee’s revenues by 8% and Symantec by 5%. I think that Microsoft has bigger plans by investing in anti-virus companies. In 2003 Microsoft bought GeCad Software Srl, a Romanian anti-virus company, and Sybari Software this last Tuesday. Will Microsoft’s purchase of anti-virus software make the barriers into the computer industry more constrained, increasing the demand of Microsoft? Or do you think that the demand for other anti-virus supplies will maintain their existing demand? http://www.usatoday.com/money/industries/technology/2005-02-08-msft-virus_x.htm

2 comments:

rico said...

I believe that demand for the other companies anti-virus programs may go down slightly, but overall I don't believe they will be affected much. If Microsoft puts it in a package with windows, then I believe it won't affect demand for the other companies much. Usually in a package it is a basic program, and if the other ones are better, consumers will continue to purchase elsewhere.

Diane said...

I agree with Rico that if Microsoft's anti-virus software is sold as a basic program in a package that consumers will still purchase better programs. If Microsoft's anti-virus software is equivilent to McAffee and sold in a software package why would consumers buy elsewhere. We know there are better operating programs and better internet browsers available but we continue to use Microsoft products. Why? Because they are bundled with every computer purchase.
If this is the case, I think McAffee and other anti-virus companies are in danger of losing a big share of the market.