by Krymzen Hall

Created on: June 17, 2009   Last Updated: March 13, 2011

Microsoft's decision to develop its own version of anti-virus software, free of charge, proves once again that this company thrives on competitive advantage. But what does this mean for companies such as Symantec (SYMC) and McAfee (MFE)? The short answer is: it depends.

When any product first enters the market, it enters a period of hype and wonder. Initially, Microsoft's anti-virus software will trigger a burst of use. But for as cutting edge as Microsoft (MSFT) has been with Windows, that doesn't mean that it can shine in all areas of technology. Time will have to tell how effective its anti-virus product not only defends against viruses, but how well it kills them; thus, how much customer loyalty it can steal from its anti-virus competitors.

To do this, the software will need continuous updating, a procedure that Symantec and McAfee are already accustomed to. And these two companies have the advantage of expert power on their side, because their primary focus is computer security. Having a firm grasp on a single market niche can weed out giants who try to take on too much. However this latest craze that Microsoft has stirred up should keep Symantec and McAfee on their research and development toes for a while.

Keep in mind, free anti-virus software is nothing new. Other companies have been offering free internet security long before Microsoft decided to try it. And these companies have had success and proven their stability and competence when it comes to keeping up with the latest codes to combat viruses. Microsoft may be introducing a new product, but not a new industry. It has to vie for its success just like the rest, but this extra element adds to the shaky nature of business, causing the competition to enter into the world of organizational change.

The success or failure of companies such as Symantec and McAfee comes down to how much they are willing to concede, or create. Will they offer free products? Will they sacrifice quality to offer those products while not sacrificing revenue to do so? These companies have been competing with the free world of its competitors for a while and have managed to remain afloat. But now that a behemoth such as Microsoft has entered the mix, there is reason for pause.

So the performance of Microsoft's latest endeavor will help determine the fate of Symantec and McAfee. If its anti-virus software does the job, is free, and is easy to download and update, then Symantec and McAfee better step up their game, either by creating new products to compensate for a higher price, or accept the fact that Microsoft has beaten them, and that the public has been teased by their free-trial, anti-virus software, long enough.

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