Until two years ago, availing an antivirus software meant that home users and SOHO consumers had to shell out not less than Rs 2,000-2,500. However, in view of the speed at which PC penetration is happening and with the growth of desktop and laptop sales in the SOHO and home segment, anti-virus has also become much more affordable for these segments. Hence, vendors in this space have started offering anti-virus at extremely lower prices.

A three user anti-virus (can be installed in three PCs) from Kaspersky is available at an MRP of Rs 500, the same from F-Secure, yet another anti-virus vendor, is priced at Rs 400, PC Tools offers their anti-virus (3 user) at Rs 500 too. A three user anti-virus that also offers Internet security, from E-scan can be purchased for Rs 600.

Given that the established vendors are maintaining higher prices for anti-virus solutions, what remains to be seen here is whether this move by some of the new and comparatively smaller vendors will lead to a price war in the anti-virus space. On the other hand it could be nothing more than the usual marketing strategy of small vendors wherein their sole aim is to grab marketshare and enhance their presence.

What is an affordable software?
Even as the vendors are lowering the prices of the anti-virus products, one really needs to delve deeper and understand the meaning of an affordable anti-virus.

Jaganath Patnaik, VP-Sales and Marketing, Quick Heal mentioned, “While looking at an affordable software one can either look at the initial cost or at the total cost of ownership
(TCO). Acquiring an anti-virus at Rs 500 initially and then paying another Rs 1,000 for engineers/computer maintenance visits just to clear up viruses, makes users think twice before buying such products, which do not offer post-sales service.”

He further mentioned that a common user getting the product at a lower cost is not enough. In order to keep computer virus-free the user must know which programs/downloads to accept and what to reject/ignore.

“Users should know how to handle a new virus infection, but unfortunately customers in India are not technically sound and this lack of technical knowledge leads to service requirement. So an affordable anti-virus should not mean low cost at the time of purchase but the TCO during the license period,” added Patnaik.

Sharing his views on low cost anti-virus solutions, Alok Gupta of Delhi-based Softmart Solutions opined, “I have observed the developments in the software industry closely and until one year back the scenario was very different when it came to the pricing of the anti-virus products. With companies like Kaspersky, F-Secure and PC Tools offering anti-virus range of products at less than Rs 600, software resellers have witnessed an increase in demand and hence an opportunity to increase their sales further.”

3 user Anti-Virus
Vendor	MRP (in Rupees)
Kaspersky	500
F-Secure	450
PC Tools	500
K7 Computing	500
Bit Defender	600
Trend Micro	1,000
McAfee	1,750
Norton	2,400
Quick Heal	2,026
E-Scan	600

Downturn in pricing
Govind Ramamurthy, CEO and MD, Microworld said, “The opening of large format retail (LFR) outlets that have off-the-shelf security products, coupled with the fact that there is an increased awareness of the different anti-virus products are the reasons for the market to become price sensitive. With the B and C-class cities witnessing a fast PC penetration rate, catering to this market which is always price sensitive is also a reason for the latest downturn in the prices of anti-virus products. The growth of the SMBs is another factor that is influencing the pricing of anti-virus products as the affordability and functionality both becomes a major factor when choosing the anti-virus product.”

Stating that consumer market is a very volume driven for most anti-virus companies Amit Nath, Country Manager, Trend Micro mentioned, “The dynamics of 81 million users on the Internet in India can sometimes make most AV companies look at the market in huge anticipation but there are some points to note. Price in any commodity business will be a major factor and an important variable in any economic model but anti-virus company will not only look at this factor alone, they will look at tight distribution models, educating consumers to the threats landscape, support models and viability of the business model because you do not want your partners to lose customers after you have acquired them based on price factor alone.”

Bigger vendors under threat?
Will the new entrants and smaller vendors eat into the marketshare of the established vendors, given the rate at which they are pushing sales?

Rajiv Warrier of Aladdin Multimedia, sub-distributor and dealer of products including Norton, Kaspersky and Trend Micro among others, said, “Establi­shed vendors are under threat at least in the SOHO and home-user segment as customers here are more cost conscious. In addition, channel stocks more of the products that are low priced as it justifies the dealer's RoI as well. In view of the recession, no dealer is willing to block too much of his funds for lesser quantity of boxes.”

On the other hand Ramamurthy mentioned, “We are gaining marketshare because of the availability of local technical support and availability of products priced competitively with the more if not same features. Our products are more market-centric and address the needs of our customers to the tee.”

Trends
With the IT revolution in the past decade, consumers are now more aware of the specific kinds of features that they expect from anti-virus software and the market has become more customer driven. “The market is expected to grow at the rate of 44 percent with the SMBs creating close to 50 percent of the demand,” added Ramamurthy.

Nath on the other hand mentioned, “Consumers will need products that are tuned to the latest technology, they will need faster, lighter AV products and also where some new features like parental control, cloud-based computing will make a new mark. They will need products which will tell them what their AV has done for them and how it benefits them daily.”

Warrier further mentioned in the presence of a low cost legal anti-virus solutions customers will opt for the same and hence piracy can be reduced to a great extent.

Conclusion
It is a known fact that no anti-virus can provide 100 percent solution towards viruses and threats. Hence, having a reputed anti-virus, which is also affordable will help customers to get rid of the threats. In addition with the small vendors also offering support via telephone, e-mail and chat, the anti-virus market will in all likelihood see a further drop in price.

Pooja Sharma
poojas@cybermedia.co,in

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