by Muhammad Fahd Waseem

Created on: June 18, 2009   Last Updated: June 23, 2009

Microsoft (MSFT) announced that it would be discontinuing Windows Live OneCare as far back as 18th Nov, 2008, in a press release. Instead, it would replace it by a free antivirus and antimalware software it codenamed "Morro".

OneCare was supposed to be discontinued by 30th June, 2009. That date is fast approaching. Many in the antimalware industry are now waiting to see if Microsoft can finally come up with a robust security product that can plug the many holes in its generally well acclaimed, but insecure, Windows operating system. Microsoft has yet to provide a specific date for the launch of Morro, however, it is now known to be

renamed Microsoft Security Essentials (MSE).

MSE itself is based on the OneCare's engine and technology, which received VB100 awards from Virus Bulletin, Checkmark Certification from West Coast Labs and certification from the International Computer Security Association Labs. It refocuses that technology purely onto malware detection - viruses, spyware, rootkits, and trojans. MSE runs primarily as a service that routes all internet traffic through a Microsoft datacenter, where the traffic is analyzed for malware in real time. MSE is expected to use very few system resources.

The special way in which MSE works - and the fact that it is free - has wide range implications for antimalware vendors. Many argue that MSE will be ineffective; much like OneCare has generally received scathing reviews. The one major difference is price, however, and free is a difficult price to compete against. If it is even fairly effective at keeping out the common malware, major antimalware companies such as Symantec and McAfee will be hard put to stay afloat.

Symantec (SYMC) and McAfee (MFE) specialize in all round security "suites". They manufacture products that do separate tasks but mesh together to work as a single unit. But if MSE uses the real time scanning to its advantage, it could easily outperform Symantec and McAfee in many ways, particularly in terms of detection. Though MSE will not protect well against threats from Local Area Networks, and there are categories of malware that it does not protect against, many users will likely prefer a free and averagely effective internet security product over a costly and only slightly more effective product. In other words, the market for anti-malware could shrink drastically, leading to lowered profits for the current anti-malware players. Furthermore, free products by vendors such as AVG and Avast will probably disappear completely - unless MSE is a complete failure.

Many will not trust Microsoft for the safety and security of their system. Experts advise complete, all round protection for all users, and MSE does not provide that. And companies like Symantec and McAfee can be expected to innovate, perhaps even bringing out their own real time detection products. Smaller companies, such as Kaspersky and Eset, which currently provide the best antivirus solutions, will probably hold on by virtue of excellent local detection and protection rates. Nevertheless, it will be interesting to see exactly what effect the free MSE will have on the established antimalware industry.

Update: As the first beta of MSE is released, it is now clarified that the internet traffic does not go through Microsoft datacenters, as was earlier thought. The real time security is with regards to kernel level scanning and continuous reference to Microsoft virus signature servers.

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