Microsoft ready to unveil free antivirus software soon

Microsoft ready to unveil free antivirus software soon

Microsoft is getting ready to unveil its free anti-virus software, pitching it into direct competition with companies such as Symantec and McAfee.

A Microsoft spokesman says that the world's biggest software maker is testing an early version of the product with its own employees. Microsoft will "soon" make a beta version available via its website, he added, although the spokesman declined to provide a specific date.

Investors are closely monitoring the free service, codenamed Morro after Brazil's Morro de Sao Paolo beach, amid concern it could hurt sales of products from Symantec and McAfee, which generate billions of dollars of revenue a year.

"It's a long-term competitive threat," says Daniel Ives, an analyst with FBR Capital Markets, though he added that the near-term impact was minimal.

Microsoft claims that Morro will offer basic features for fighting a wide range of viruses, which will likely make it comparable to low-end consumer products from Symantec and McAfee.

Their top-selling products are full security suites that come with features including encryption, firewalls, password protection, parental controls and data backup.

Three years ago, Microsoft entered that market with Live OneCare, which turned out to be a commercial flop. It announced plans in November to kill that product suite, saying it would launch the free Morro service by the end of 2009.

Analysts say they are looking forward to Morro's beta to see exactly how its features compare to those in products from competitors.

Microsoft says it will provide protection from several types of malicious software including viruses, spyware, rootkits and trojans.

Officials with Symantec and McAfee claim they do not see Morro as a threat. "Microsoft's free product is basically a stripped down version of the OneCare product Microsoft pulled from the shelves," says Symantec Consumer division president Janice Chaffin. "A full internet security suite is what consumers require today to stay fully protected."

Joris Evers, a spokesman McAfee, says his company is already enjoying strong growth despite competition from free anti-virus products that are on the market. "On a level playing field, we are confident in our ability to compete with anyone who might enter the marketplace," he says.