Virus Bulletin Results - April 2010

8/8/2019 Virus Bulletin Results - April 2010

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In terms of law enforcement, in the vast majority of cases investigating

cybercrime is a complex task, particularly taking into account the fact that the

Internet has no physical borders.

Data which falls into the three categories listed above clearly indicate that not

only is the level of criminal activity on the Internet already high, but that it willalso continue to increase. One piece of evidence for this statement is that the

amount of crimeware has increased twofold over the past year; this indicates that

criminal activity on the Internet has doubled in the same space of time. There is

no reason to suppose that this growth rate will slow in the future.

The conclusion: pressure on antivirus companies will increase as they will have

to analyze more and more malicious code. Companies that fail to detect new

malicious programs quickly and thus leave their customers unprotected will suffer

a decrease in their market share, and will not be capable of competing in this

professional arms race.

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Fourteen years ago, back in 1996, malicious programs fell into two categories:

viruses and primitive Trojans. At that time, there was no such thing as malware

which could be used for criminal ends. However, in the intervening decade,

malware has become far more complex and varied:

network worms a wide range of Trojan programs, including Spyware AdWare malicious application of legitimate programs (such as keyloggers and

remote administration utilities)

a wide range of spam, from begging emails to blackmail phishing - a clearly differentiated type of financial scam network attacks and rackets, etc

The vast majority of malicious programs are written for Win32 systems. The

number of malicious programs targeting Linux, MacOs, and smartphones(running under a variety of operating systems) is still, as yet, insignificant. There

have also been a handful of PoC viruses for 64 bit systems.

The conclusion: antivirus companies have to be prepared to work with a wide

variety of malware. This means not only releasing products but providing


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continued support: testing them, and releasing updates for the whole product

range. Companies that cannot keep up with the very latest technological

developments will not be able to break into new industry segments. Moreover,

they will start to lose ground on their own territory, and current competitors or

completely new players will take advantage of new market opportunities.

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Microsoft is going to be seriously focusing on the security solutions market; this

will include developing antivirus solutions. The antivirus industry is in a state of

shock - everyone remembers Netscape and other independent projects, which

either significantly lost market share or disappeared altogether after Microsoft

produced similar products. Microsoft is planning to bring the following to the

market:

antivirus for home PCs antivirus for workstations (planned for the future) solutions for MS Exchange (using the multi-engine Antigen from Sybari)

Of course, the appearance of this commercial giant will be a heavy blow to other

manufacturers. But just how heavy will the blow be is hard to predict.

Users come in a range of shapes and sizes. So what factors influence them when

buying an antivirus solution?

Commodity: the user buys the cheapest antivirus, or the most attractivelypackaged.

Branding: The user buys either a brand to which s/he has loyalty. or abranded product which has been successfully marketed.

Branding: the user is determined not to buy a Microsoft product. Suchconsumers will not trust antivirus solutions produced by this manufacturer.

Performance characteristics: the overall quality of the product.Its clear that these factors, and the types of user described, dont exist in any pure

form. The factors which influence consumer chose will be a combination ofA+B+C+D in varying degrees. If were talking about the home user market,

factor B will have a significant influence. For example, as Antigen uses several

antivirus engines (including some very good ones), the corporate market will be

influenced by B+D. In order to estimate Microsoft's future market share, and the

losses which other antivirus companies will correspondingly suffer, the value of


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A, B, C, and D needs to be determined. This is a simple task which can be

fulfilled via consumer surveys.

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As shown above, there are three deciding factors which affect the condition of theantivirus industry:

The criminalization of the Internet Various types of criminal activity Antivirus protection from Microsoft

The antivirus market of the future will be heavily influenced by these three factors

and to a certain extent it has already started influencing the consumers and the

market as a whole.

So is it time to throw in the towel?

The answer to this question is unclear. We should remember Microsofts first

attempt to create an integrated antivirus solution, MSAV for MS-DOS in 1994.

This attempt was unsuccessful. Its rare to make the same mistake twice. 12 years

have passed since 1994, and a lot has changed during that time. The most

important thing is that consumer demand for quality has increased: detection

rates, speed of reaction to the dramatically increased number of attacks, frequency

of updates, proactive technologies.

If a product is technically sound but does not offer better antivirus protection thanMicrosofts solution, it will more than likely be bought mainly by consumers

influenced by factor C. If a product offers better protection than Microsofts

antivirus together with a lower price, then it will appeal to buyers of all

categories. Furthermore, if an antivirus developers engine is integrated into

Antigen, then there is no need to worry about the future (as long as the engine

continues to be used). Microsoft will not be selling the product itself, but taking a

percentage from the vendor. And for Microsoft, that is the beauty of it: it can sit

back and enjoy the profits (and the ideology of a multi-engine solution" will

transform the antivirus business into a trade in engines rather than products).

It will be a different, rather sorry, story for those vendors whose antivirus engines

are not integrated into Antigen. On the other hand, such companies should not,

perhaps, be written off; as there's no solution which can provide 100% protection

against all threats, the IT market (including the antivirus market) is extremely

crowded. The more troublesome a disease, the more medicines will be taken to

combat it: in a similar way, users plagued by computer viruses are ready to


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embrace new technologies to rid themselves of the problem, and this means they

will be ready to embrace a variety of solutions, not only those from the software

giant. The message to antivirus companies is clear: if the company is not only to

survive, but to survive profitably, compatibility issues have to be solved. Engines

from different developers have to be developed with peaceful coexistence in mind

(as is the case with Antigen) Another alternative is to develop double or triple

layer protection against Internet threats.

The conclusion: Its likely that things wont turn out that badly. However, some

antivirus companies will have to start cutting their budgets and thinning the ranks

of their employees. Public companies will find that Microsofts entry to the

antivirus market will impact the value of shares, and a fall in value will have the

following negative consequences

It will be harder to attract investment Employees share options will be devalued

One consequence will be that middle and senior management will desert the

company.

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Changes are underway in the antivirus industry and will continue for some time to

come. Its not unlikely that Microsofts entry to the IT security market will be a

decisive factor which affects the changing situation. The software giants entry

will undoubtedly have an impact on the best-known industry players and the

current market share of antivirus companies is likely to change radically.

Naturally, each company will be affected in a different way. For some, it will

come as a heavy blow, while others will barely be affected and yet others will

welcome Microsofts arrival on the market. The only factor which will be a

watch-out for all is whether Microsoft makes the product available ata consumer-

friendly price or not.

The most negative consequences will be felt by:

Publicly held companies Businesses which rely on income from the market sector which Microsoft

is entering

Manufacturers with engines which are inferior in quality to Microsofts Manufacturers whose engines aren't used in Antigen

The brightest future awaits:


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Privately held companies Manufacturers with a broad product range Manufacturers with a high-quality engine Manufacturers whose engines are used in Antigen

Hopefully, the arrival of the software giant on the IT security market will have apositive impact on future developments in this field and will raise the quality of

security solutions, if not then atleast increase the competition among the existing

big players for the benefit of the organisations and the consumers. It is to be

hoped that the Internet will become a safer place as a result - every desk will not

only have a computer on it, but a secure computer.

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About Dipen Halwai: Mr. Dipen is in charge of Candid magazine in the entire

state of Gujarat. Candid is the most referred magazine by the Computer and

software dealers for knowledge and details about various IT products existing orbeing newly launched in the market. He has been working with the magazine

for many years now. He is also a key distributor for Kaspersky Antivirus in

Ahmedabad.

The following information came into light from the interview conducted:

What is your opinion about the antivirus market inAhmedabad as well as Gujarat as a whole?

Ans: We will discuss about the brands which have somewhat a

considerable impact on the market. These brands are Kaspersky,

QuickHeal, AVG, Norton AV, Net Protector and EScan.

QuickHeal has a very good track record in Ahmedabad as of now,

Kaspersky is growing as a brand which offers good performance

and is cheap as well, Norton is preferred by Corporates as it has a


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good image since a long time and the clients have developed a

sense of trust in the brand, Net Protector is a comparatively newer

brand which has found ground in Ahmedabad and they are

approaching and spreading in the market fast with strategies

imitated from QuickHeal, Norton and Kaspersky, EScan is also

becoming a preferred brand for those clients whose work rotates

around internet usage and added to it is cheap and gives good

scanning support.

Which are the other brands which exist in the market?Ans: K7, iolo, G-Data, Trend Micro, Trust port and McAfee.

Can you throw some light on the margins for dealers on thesesoftwares? (approximately)

Ans: QuickHeal Products:

Total Security: End-user price - Rs.1650Dealer price - Rs. 900

Guardian: End-user price - Rs. 600-700Dealer price - Rs. 280-300

Internet Security: End-User price - Rs. 1000Dealer price - Rs. 550-600

Quick Heal AV 2010 End-User price - Rs. 650Dealer price - Rs. 250-300

Further discussions with Mr. Halwai revealed the following facts:

One major differentiating factor in the two major competing brandsof Ahmedabad viz. Quick Heal and Kaspersky is that while the

former needs a system formatting before updating or installation of

newer version, which runs the risk of releasing viruses from the

virus chest, the latter presents no such problem.

Kaspersky AV needs no specific renewal action. In Gujarat, Quick Heal AV is dominant in the Ahmedabad market

due to its on-site local support, however some other brands which

are doing pretty well are Trend Micro in Surat and South Gujarat

districts, Norton AV in Banks and other financial institutions and


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Kaspersky among students of various disciplines (because of its

low price).

Net Protector is a good AV software, but its market hasnt therequired boost due to less awareness among the consumers.\

Kasperskys performance in comparison with QuickHeal I regardswith encryption protection is far superior which also helps in

making the software faster, lighter and better when downloading

updates is the context.

K7 had a good Brand image but they stopped their core productand started Total Security. This created a doubt in the mind of the

customers that K7 was not competent enough and moreover it

failed to instill confidence in the mind of the customer about thenew product.

Iolo had also introduced System Shield in the Indian market sometime back, but due to inadequate advertising and less promotional

activities by Mediaman Distribution (its main distributor in India),

it failed to capture the customers even after keeping a low market

price of Rs. 390 for a 3-user pack.

As a changing trend, awareness has increased among the ITcustomers in the last 3 years. Earlier virus definition was not that

clear and hence people were not aware of data theft through spam

mails, etc. But now data theft has increased and with the customers

becoming smarter, they dont mind going for an expensive

software if it serves the purpose of data protection properly.

McAfee used to follow the PULL strategy in the sales of itsproducts but now they have shifted to a PUSH strategy with the

market being increasingly flooded by more and more competitor

companies.

TAG Computek Pvt. Ltd. is the national distributor for TrustPortin India now. Earlier this distributor used to deal in Kaspersky AV,

but now they have shifted their operations to TrustPort. This

distributor is trying hard to promote the brand name of TrustPort

AV and has fairly succeeded in doing so in Mumbai.


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Kasperskys appointment of Mr. J. Tripathi, former Marketing headof QuickHeal has helped the former a lot in recent times and

competition is expected to grow in the near future.

The expected approximate budget for the top three antivirus playersin the Indian market for this year for promotional activities has

been given below:

Norton: Rs. 2-3 crores

Kaspersky: Rs. 4-5 crores

QuickHeal: Rs. 1 crore.

Mr. Dipen Halwai also suggested that there are some companieswhich are there to remain in the market for some timeand

QuickHeal is one of them.

In Gujarat, the monthly share of sales approximately has beengiven below:

QuickHeal: Rs. 3.5-4 crores

Kaspersky: Rs. 1-1.5 crores

Norton: Rs. 1.5-2 crores

Trend Micro: Rs. 25-30 lakhs

EScan: Rs. 50 lakhs

Another surprising fact revealed by Mr. Halwai is that there areoften hidden sales in the market which deceive the companies of

the actual sales of their software products. To support this he said

that most of the distributors suggest upcoming dealers and

distributors to deal in QuickHeal just because that will reduce any

unwanted competition in the market among the dealers. The main

fact underlying this behavior is safeguarding their margins and

customer base. But at the same time they suggest the customers to

buy Kaspersky instead of QuickHeal citing the reason thatKaspersky comes cheap and it also gives them better margins than

QuickHeal. This is actually an alarming case for QuickHeal

Technologies.

A small analysis of the sales trends of the AV softwares in themarket has been given below:


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2 years back, Bit Defenders sales was better thanKaspersky in India, now its the opposite

G-Data is doing good promotion through engineers andtechnical people in Gujarat, but has failed to increase sales.

Trend Micro has not succeeded in improving sales either QuickHeal, Norton and Kasperskys sales have increased

gradually over a period of time now.

K7s sales fluctuate from time to time EScans sales have increased in Gujarat, but the increment

has been on a slow basis.They are now targeting new and

prospect dealers.

McAfees sales have declined over the years.Candid magazine has approximately Rs. 2.5-3 yearly budget for

Kasperskys promotional activities.

Mr. Halwai suggested that now that QuickHeal has started

promoting the brand in local Television media and Radio, other

brand will also follow suit soon. So QuickHeal should start

thinking about alternative options for promotion which will project

the company name and its product in a different and more effective

way.

0U$QLO*XSWD1DWLRQDO6DOHV+HDG(6FDQ

An online interview of Mr. Anil Gupta, national Sales Head, EScan (secondary

data) is given below:

What is your present focus of operations in India?We are working to strengthen our market presence in the East and North

region by adding more channel partners to our network focusing on more

penetration in the B & C class cities.

Information security solutions are considered to be a lucrativeopportunity in India. What are your comments on this?

Security as Industry is growing very rapidly, Antivirus and Internet

security market has been growing at rate of 28% YOY, and with onslaught

of PC penetration in B & C Class cities the Market opportunity and growth

will definitely remain in double digits. Opportunity for partners is

immense for right solution provider who can deliver product and help


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client secured his operation. The anti-virus industry is growing extensively

and the market opportunity in the SOHO and retail segment alone is US

$40 million (nearly Rs 200 Crore). The SMB enterprises again are looking

beyond end-point security and they want a total solution, ranging from e-

mail security, gateway-level specialized security and spam control, among

others. Growth will largely be fuelled by PC penetration and SME/SMB

segment which is growing exponential.

How do you plan to tap the solution providers which are working onthis segment? Do you have any partnerships with systems integrators?

We have been talking to Solution providers about the advantages of

working with EScan in terms of ease, better product portfolio and Features

software, higher margins, better incentives and good support and above all

customized product offering, where we are already working with some ofthe big SI like HCL/CMS/ALLIED.

What is your channel policy in India? What kind of channel expansionare you looking for in the near future - both in resellers as well as

solution providers?

We plan to introduce this year a special program for the resellers to

proactively sell EScan, thus looking for an additional 5-7% increase on our

present market share to capture approximately 15% of market in consumer

segment, primarily with the packaged software in the SOHO segment.This will also be driven by our plans of consumer awareness and

activation program across India.

What is your growth strategy here? What are the engines of growthfor EScan in India?

Our previous channel programs has been accepted very well by the

channel continuing that we want to add the "Authorized EScan Resellers"

nos to atleast by 400 no.s through our new partner Development program.This encompasses and rewards the channel for their contribution to the

mutual growth. In order to achieve our objective the key initiatives are

partner enablement and training on our existing solutions. Identifying new

partners in territories where we have traditionally not been present, thereby

achieving 200-250 thousand users during the year. We are constantly


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evaluating and appointing new channel partners to further our growth.

Ideally, we like to identify new markets for our channel expansion.

How do you look at the competition from other vendors operating inthe similar segment? How do you differentiate and win over the

competition?

EScan provides its partners with the latest update on its competition

through our partner portal. That would help our partners to position us

much more aggressively against competitive technology or vendors. EScan

sells its products in the Indian market. We also have a Development

Center in India which helps us to identify and develop some key features

and probably tailor them more to requirements from Indian customers.

Source: ///

+),1',1*6

+2# The market dynamics of the Antivirus industry can be studied in view of four

major segments, viz:

Market size:According to US-based research firm Forrester, this market was

just about $35 million last year in India. This fiscal, it is projected

to grow at a robust 37.6%.

Market trend:This topic has been discussed earlier under heading.

Drivers (Growth and Technology):With more than 400 viruses said to be doing the rounds over the

internet at any given point, the threat of security breaches is

driving the market for antivirus products.


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IDC, a US-based technology research firm, expects the number of

devices connected to the global network to double to 3 billion by

2011.

With newer and newer electronic products being introduced in the

market today, starting from laptops to mobile phones with multi

functions and the extent to which they are involved in data transfer

and internet usage, the risk of new viruses is on the rise with the

day.

Strengths and weaknesses:The major strength of this industry is that there is no other way to

tackle viruses and protect the data of the people worldwide other

than through the softwares provided by the various brands

available. And with a gradual increase in the affordability of these

softwares, the market and the customers have witnessed a fastchange in the ways available to protect their data and systems from

hostile factors.

The major weakness of this industry is the constant attack of piracy

and to a large extent, the industrys inability to prevent the

duplicacy of the softwares, which become available to the

customers through torrents sites.

+2$ Dealers/ Distributors/ Retailers approached:

Personal interviews: 85 Telephonic interviews: 33

Industry experts: 02

Total: 120 respondents

From the surveys and interviews conducted in Ahmedabad among various

dealers, retailers and distributors of antivirus softwares, the following have been

found out:

In terms ofavailability, (in descending order)


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QuickHeal AV products: 96 dealers / 118 dealers

Kaspersky AV products: 91 dealers / 118 dealers

K7 AV products: 63 dealers / 118 dealers

Symantec (Norton) AV: 55 dealers / 118 dealers

Net Protector AV products: 39 dealers / 118 dealers

EScan AV products: 29 dealers / 118 dealers

AVG products: 17 dealers / 118 dealers

Trend Micro AV products: 09 dealers / 118 dealers

Mc Afee AV products: 08 dealers / 118 dealers

Bit Defender AV products: 02 dealers / 118 dealers

G-Data AV products: 02 sealers / 118 dealers

Doctor Spyware products: 01 dealers / 118 dealers

Therefore, in terms of availability, QuickHeal Antivirus products are the

most available in the antivirus software market of Ahmedabad, Gujarat.

In terms ofproduct performance, ranks of the antivirus software brandsoperating in Ahmedabad have been given below: (from the charts)

1. QuickHeal AV2. Kaspersky AV3. Symantec (Norton) AV4. Net Protector AV5. K7 AV6. EScan AV7. Trend Micro AV8. AVG9. Others are insignificantTherefore, QuickHeal antivirus leads the rank list for the best performing

antivirus software, followed closely by Kaspersky and Symantec (Norton)

antivirus.

In terms ofpricing and dealer margin, (top 5 antivirus softwares)1. Kaspersky AV2. Net Protector AV3. K7 AV4. EScan AV5. AVG Antivirus


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The dealer margin list is headed by Kaspersky antivirus, followed by Net

Protector and K7 antivirus. QuickHeal and Norton antivirus dont feature

in this list due to their comparatively higher price range for the end-user as

well as a higher dealer-buying price.

In terms ofcompany support such as advertisement, promotions, freebiesand discounts for dealers, etc,

1. QuickHeal AV2. Net Protector AV3. Kaspersky AV4. EScan AV5. Others are insignificant

In terms ofpost sales services such as after sales technical support andassistance, toll-free number help, etc,

1. QuickHeal AV2. Net Protector AV3. Others are almost same i.e toll free help numbers are available and the

end-users have to call at these numbers whenever they need any

technical assistance.

For QuickHeal and Net Protector, local technical support is available.

EScan is also planning to come up with a technical team to support the

customer base during technical problems such as installation,

upgradation, etc.

In terms ofcustomer demand, (top 5 brands)1. QuickHeal AV2. Kaspersky AV3. Net Protector AV4. Symantec (Norton) AV5. K7 AntivirusThus we see that the customer demand for QuickHeal Antivirus in

Ahmedabad is much more than the other competing brands. The second


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ranked brand is Kaspersky and is closely followed by Net Protector, an

upcoming brand and then Symantecs Norton Antivirus.

326,7,9(6 The positive facts learnt from the survey have been listed below:

Products of QuickHeal Antivirus Technologies Pvt. Ltd. are the bestselling antivirus products in the city of Ahmedabad with almost every 3

out of 5 customers desiring to avail the brand.

The customers prefer and opt to purchase QuickHeal antivirus, InternetSecurity and Total Security for their laptops and computers (depending on

the level of usage) more than any other brand despite of the comparatively

higher price of QuickHeal products.

The advertisements in Radio and television media have helped spreadnews and awareness about the products and people who earlier did not

have much knowledge about the importance of an antivirus software have

turned to QuickHeal Antivirus products as their first trials.

1(*$7,9(6

Grownak Enterprise located at Paldi area of Ahmedabad is the firstenterprise/ dealer to feature in the list of www.justdial.com when a

prospect customer searches for QuickHeal Antivirus dealers. But this

dealer is now pushing the sales of Net Protector Antivirus. This is a threat

to QuickHeal Antivirus Technologies Pvt. Ltd. as it faces the risk of losing

a bulk of potential customers to Net Protector and also a diminishing

demand of its products due to availability of such dealers in the market.

Lesser visits and supervision by the QuickHeal staff, as stated by thedealers. This is hampering further growth of QuickHeal and allowing

other brands to rise because the staff and representatives of other brands

such as EScan and Net Protector are spread wide in the market in search ofpotential dealers who are willing to shift brands and deal in newer

products which give them more profits and margins.


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#,&21&/86,21

#%2# QuickHeal AV Tech. Pvt. Ltd. should step up dealer satisfaction strategies

to an extended level because as per most of the dealers, QuickHeal gives

benefits and special gifts on the achievement of a certain level of points in

the sales. And this actually doesnt benefit the dealers much. Like Net

Protector and other brands who follow such schemes, if QuickHeal too

emphasizes on giving discounts on the purchase of software packs by the

dealer from the company or distributors, it will help the dealers more as

they can utilize the money saved in some other fruitful activity. One dealer

even suggested that if QuickHeal introduces schemes such as 2 packs freewith the purchase of 10 software packs for the dealers, then it will benefit

more than receiving a cutlery set on the attainment of some points during

sales. As per the industry expert Mr. Dipak Halwai, Kaspersky AV is planning to

sweep the market in the coming year or two with extensive marketing and

promotions. QuickHeal should not only restrict itself to Radio and TV ads

for promotion, but also, if possible, go mobile with probably a van with

representatives who can go door to door to offices, schools, colleges, etc

and give free demonstrations. QuickHeal Antivirus Technologies Pvt. Ltd. also should try to keep a

monthly update of the number of new dealers in the city every 2-3 months

and check the trend of dealership with these new entrants. This will give a

clear picture of what the other brands are planning and how fast they are

trying to capture the Ahmedabad market, thus breaking up QuickHeals

market. If possible, QuickHeal should reduce the dealer-buying price of the

softwares as this will encourage the dealers to go for QuickHeal more than

Kaspersky AV. At present the only factor which is helping Kaspersky win

over QuickHeal regarding dealer margins is the low price at which the

dealers get the softwares from the company. If QuickHeal is successful in

formulating a new lowered price for the dealers, it can potentially catapult

the sales of QuickHeal AV products. The company should constantly\keep vigil on the growth of piracy.

Antivirus software available for Rs. 100-150 in the piracy market can


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dampen the overall sales of the original softwares, especially those which

come a bit expensive such as QuickHeal AV and Norton AV.


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##5()(5(1&(6

antivirus.about.com anti-virus-software-review.toptenreviews.com/ www.pcantivirusreviews.com/ reviews.cnet.com/software/ www.pcworld.com/article/.../top_antivirus_software.html www.antivirusware.com/ www.consumersearch.com/antivirus-software www.gartner.com/press_releases/asset_154006_11.html www.internetnews.com/xSP/.../Whos-Who-in-Antivirus-Software.htm www.articlesbase.com/.../antivirus-market-share-1658507.html www.av-comparatives.org/comparativesreviews/main-tests www.av-comparatives.info/ www.av-test.org/ www.dslreports.com/forum/r24361500-AV-Comparatives-ProActive-Test www.infosecurity-magazine.com/

Apart from these, individual official websites of the following Antivirus and software companies

have been referred for secondary help in the compilation of this report:

QuickHeal Antivirus Technologies Pvt. Ltd. Kaspersky Antivirus Symantec Norton Antivirus K7 Antivirus Microsoft

Documents

Virus Bulletin Results - April 2010