[ news_security_news ] Microsoft A Security Predator?
SecurityProNews Staff Writer
2006-06-21
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Microsoft is being criticized for "predatory pricing" of it its security software OneCare because it is so much cheaper than its competitors.
Predatory pricing refers to one company taking a loss on a product just to be able to offer it cheaper in order to drive out competitors.
Alex Eckelberry writes about this matter on the Sunbelt Blog. Eckelberry says:
We already know that Microsoft loses money on most of its business (it primarily makes money on the operating system). But now we see that Microsoft is endangering the entire security ecosystem with ruthless, Standard Oil-style pricing.
Start with OneCare: It is arguably a security suite, but just for the sake of simplicity, let's just consider it an antivirus product. OneCare costs $49.95 for three PCs, an average of $16.65 per machine. (I'm going to ignore the fact that Amazon.com is blowing out OneCare at $19.95, or an average of $6.65 per machine-which is even worse - and Microsoft's offer to its millions of OneCare beta testers all getting it for $19.95 as well.). Competitors McAfee and Symantec offer similar products for three PCs retailing at $69.99 and $89.99 respectively.
Jack Schofield refers to a market report from Gartner on the Guardian Unlimited technology blog.
(Via Guardian Unlimited)
About the Author:
SecurityProNews is a daily online and email publication focusing on internet security issues.
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