Microsoft unveiled last week a new security solution for their upcoming version of the Windows Operating System (code-named Longhorn) called Client Protection. This new security software, which they had been working on for the past year, will be launched in its beta version this December and will finish testing by the time Longhorn comes out next year.
The software is designed to protect personal and business desktops, notebooks, as well as file servers from any kind of malicious spy-ware, mal-ware, 'phishing' attacks, viruses and other fraudulent web-related activities. According to Reuters U.K., European Union officials have started investigating possible anti-trust violations. Would Microsoft be unsuccessful in finding a loophole in this case or would the world's largest software company battle its way through as it did before?
Last year, Microsoft was charged a fine of $613 million (the highest ever in any European competition case) for bundling their Windows Media Player with the its Windows Operating System. Bundling is the practice of selling one good, in this case the upcoming Client Protection software, with another easily distinguishable market established product, which is the operating system. On one hand, this practice may be appealing as it would increase the sales of the new software. On the other hand, it would hurt competitors like Symantec and McAfee, and make this an anti-competitive practice.
Though this is not the first time Microsoft's actions have been questioned by the press and governing authorities, this case will envelope even higher repercussions because of Microsoft's distinctive strategy.
The announcement of the creation of SecureIT Alliance on Microsoft.com led analysts to believe that Microsoft would promote and develop the anti-virus industry as a whole. It did not take long for analysts to realize the company's real aims: developing and improving its own Client Protection software for its operating system. But this is not where Microsoft will stop. Analysts suspect that forming this alliance is merely an attempt to enter the market and establish quarters -- the final strike is yet to come.
The SecureIT Alliance will consist of security specialists from notable security software providers such as Symantec, McAfee, LANDesk Software, Trend Micro and RSA Security along with Microsoft's own engineers. The group will be pooling their resources and battling against existing viruses by bringing out security updates as soon as possible.
One might view this bold step by Microsoft as an effort to promote better security across the globe by combining the anti-virus industry's resources through SecureIT. Nevertheless, people have questions (as I had): Why would Microsoft take such a step? What is it in it for them?
The answer to which lies only with Bill Gates, and no one knows his next move. From history, we know what had happened with Apple and how Microsoft played its cards. The lawsuit in 1994 (Apple Computer, Inc. v. Microsoft Corp.) concerned copyright violations of Apple Computer's graphical user interface (GUI). It was one of the most complicated tech-wars in history and ended in Microsoft's favor.
Microsoft is only concerned about its profits. An interesting point to note is the negligible market share of Microsoft Windows Operating System in relations to the entire anti-virus industry today. There will always be a lust for secure servers, encryption, and anti-viral software protecting personal as well as business environments. The facts are clear:
Microsoft only makes five to 10 percent profits on its Windows Operating Systems as compared to the volume of sales by the anti-virus industry. This marginal profit would motivate their entrance into this new industry as well as increase their Windows sales.
The way Bill Gates will pursue this aim is via a smooth build-up of Client Protection software's security features through the SecureIT Alliance. Microsoft's technique is to partner with industry and keep customers happy by informing them of developments while actually seeking profit only.
E.U. officials have already requested that Symantec, the most established and renowned software security provider (notably the maker of Norton Antivirus family), provide information about the logistics of this alliance and whether Microsoft will be violating any anti-trust regulations in this market.
There is no doubt in imagining the monopolistic power of anti-virus systems coupled with operating systems. Let us hope this imagination does not turn into a reality.
Muzammil Saya can be reached at saya@cavalierdaily.com.
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