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Microsoft deal makes serious threat for McAfee, Symantec

By Derek Sooman

On February 8, 2005, 6:02 PM

Microsoft has said it is buying Sybari Software Inc to expand its security products line - news which has made shares of antivirus security providers McAfee Inc. and Symantec Corp. tumble. Sybari has alliances with such vendors as Computer Associates, IMlogic, Kaspersky Labs, NetIQ and Sophos, all of which are major rivals to the two companies. This bold and decisive move on the part of Microsoft seriously threatens McAfee Inc. and Symantec Corp, who may see their customers move over to a Microsoft solution. This is certainly likely if Microsoft were to bundle free security products with the next version of Windows.

"[The impact on McAfee and Symantec] could be significant, although it is too early to determine the level of success or failure MSFT will have." - Deutsche Bank.

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