Of course, Symantec is likely less thrilled with Microsoft's decision to move beyond hardening its own products, onto Symantec's turf of antivirus software. Analysts have pointed to that company as the one with the most to lose if Microsoft grabs share in the security market.
"As this company dominates the consumer antivirus market, it obviously has the most to lose," Morgan Stanley analyst Peter Kuper and Brian Essex said in a January 2005 report. "Symantec will likely be successful in softening the initial blow, but the prevailing winds should eventually impede growth, in our view."
At that time, the Morgan Stanley analysts argued that Microsoft would enter the consumer antivirus market "because it has no other choice." The analysts pointed to the millions of unprotected home Windows PCs as the largest security threat on the Internet.
In the report, Kuper and Essex made the point that security should be something that is part of a computer and not a separate application. "This may be a controversial comment, but in our view, security is more often a feature of a product or service rather than a separate product," the pair wrote.
They likened the products to car alarms, which were once only available as a standalone addition to an auto, but are now standard on many cars.
Perchance to lead
Pescatore said that when Microsoft got into the
security business with its 2003
purchase of GeCad, it was largely a defensive move.
"Back then, it was more a reaction to all these worms and viruses that would hit Windows, and Microsoft would get yelled at," he said. But the software maker also clearly saw opportunity. "Symantec's stock price would go up every time there was a virus," Pescatore said.
Now, he added, the company has turned a liability into a chance to show leadership.
On the consumer front, Pescatore said that Microsoft is already in a good position, bringing a well-established and largely trusted brand into the market.
"If Microsoft's security products are easier to use, we think consumers will be very happy to buy from Microsoft," Pescatore said.
An open question, though, is whether Microsoft could end up a victim of its own success. If it succeeds in nabbing dollars from rivals like Symantec and McAfee, those companies could have less profit and therefore less money to invest in securing Windows.
Microsoft's Nash said that as long as other security companies innovate, there will be plenty of dollars to go around.
"As we address a set of issues, they'll be opportunities for them to build products that compete with the issues we are addressing, but also opportunities to go build more advanced things than we can do," Nash said. "We can't do it alone."
Another challenge for Microsoft is balancing the promotion of its OneCare antivirus service without unfairly tying it to the Windows operating system. Today, for example, Windows points to a Web site that offers various security products for customers who don't have antivirus installed. Nash said that site will continue to use objective criteria in determining the order sites get listed.
"We're certainly going to promote Microsoft OneCare off Microsoft.com. You should expect us to do that," Nash said. "When it comes to things that are a part of Windows, we will be fair."
Microsoft, meanwhile, is not content with just addressing security on the PC. The company is also starting to look at other opportunities, including helping businesses shore up mobile devices, said Amy Roberts, a director of product management in Microsoft's security technology unit.
"We need to stay vigilant to stay ahead of the potential security threats that mobile devices pose, both in terms of data security and as avenues for virus or worm activity," Roberts said.
CNET News.com's Joris Evers contributed to this report.
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