MS is pushing into software protection and security market with a full steam and becoming as one of the main runners in the industry. 60 percent of domestic Korean antivirus software market share is controlled by original Korean R&D firm Ahn Laboratory. Can MS'global influence help them penetrate into AhnLab's stronghold?

Upon the MS' announcement of its plans to release personal security suite package along with commercial enterprise security solution within this year is driving the domestic security software manufactures uneasy and nervous.

Microsoft, just after one month of its 'Windows Live OneCare’ debut reached 2nd place in security solution sales and quickly grasping the market share, pushing the market leading Symantec to 10.1 percent, McAfee 3.3 percent and Trend Micro’s 1.3 percent respectively.

In domestic Korea, AhnLab (60% market share) and other overseas foreign antivirus software firms are expected to feel the affect of MS' invasion and keeping a close watch on MS korea' move.

MS, promising to takeover personal and commercial security market
MS Korea plans to release the personal security solution, 'Windows Live OneCare' and comprehensive line of business security product, Forefront by the end of this year or early next year. Windows Live OneCare is a PC protection and maintenance service that offers an antivirus and firewall, along with tune-up and backup functionality, All-in-One PC Health Service for Consumers.

The business security, Forefront product line consists of the Security for Exchange Server, Security for SharePoint server, Security for live Communications Server. In addition, Client Security will also release within first half of next year.

MS Korea's head of security product division Won Young Cho said, "The security and protection issue has become so important now so it’s not a choice anymore. The security and protection is a right and same time a must! Presently, domestic security product firms are showing instabilities. They have 'David & Goliath' attitude when dealing with global companies. Why not just work together with Goliath? MS is eager to support R&D with investment to those domestic firms that are holding special patents."

Domestic security firms: "US & Korean markets differ"
However, domestic The Korean market is unlike that of US with its unique market and frankly, Korean security software manufactures are questioning the outcome, whether the MS' global stature can influence the Korean market.

The AhnLab who probably will face most effect form MS's beefed-up security sales strategy is showed rather cool reaction by saying "US and Korean market situation and consumers have different aspects and MS security products would not last too long."

AhnLab's VP Ik-Hwan Kim stressed, "Korea and US have much different markets. MS' success in US market is probably due to its strong sales outlets and collaborates with low price it applied. MS can keep the sole position in other markets but in security market, they will have difficulty earning the trust or give much influence in the Korean market."

AhnLab can be self confident with its 24hrs real time rapid response capabilities but MS on the other hand, doesn't even have the basic response system yet and just looking to profit from the market. We can see the similar tactics from MS' recent discontinuation of Windows 98 security patches to help sell more later versions of windows OS said the AhnLab.

Meanwhile, Symantec Korea says, Because AhnLab is taking 60 percent of the current personal security market, it will feel the most affect from the MS' move and feel we can benefit from their crash course, possibly help our numbers up in personal security sales.

Symantec Korea's Security business director Jin-Suk Byun said, "In Korean market, the situation is different compared to US market. The US head division might feel some adverse effect from the MS move, but in domestic Korean market, we do not expect to see too much ripple for the overall sales of our personal security products."

However, these domestic firms are mainly basing its predictions from solely relying on their existing products and services. If MS can deliver better, inexpensive product that is compatible to Windows, the industry should take into account that there is a good chance it can repeat the US’ market success in domestic Korea too.

On this note, KISIA(Korea Information Security Industry Association) said, "Ultimately, all the talks about MS jumping into the security market will be decided by consumers and market conditions. We see it as a positive sign. Perhaps the MS’ move can help can bring stimulus to stagnant domestic security market."