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

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