Microsoft Clearing a Path to Small Biz Security Adoption

Microsoft snuck out a second version of its Security Essential 2.0 application over the weekend, adding linkage to the embedded Windows Firewall. The early indications are Microsoft is moving to make MSE a more complete software security suite for home and small business users. The ultimate result could be more channel security opportunities.

Microsoft has made no bones about its intentions to become a major player in the security marketplace. Through product development and acquisitions over the last decade, Microsoft has morphed its Internet Security and Acceleration Server into the Forefront data and identity management portfolio. On the client, it added embedded protection – most notably Windows Firewall. And through the acquisitions of Sybari and Giant, Microsoft developed an anti-virus engine that in 2009 became Microsoft Security Essentials.

The beta version of MSE 2.0 was released in July, where it received strong reviews for its ability to detect and protect against viruses, Trojans and rootkits that plague home and SOHO users. The new version sports improved virus detection and links with Internet Explore to detect Web-born threats. The linkage to the embedded Windows Firewall – a feature that first debut in Windows XP – provides users with seamless awareness over their security posture and, potentially, greater management over client security.

Beginning last October, Microsoft relaxed licensing of the free security software so small businesses with 10 or fewer users could use MSE. Previously, MSE was only available to single license home users. Anti-virus vendors such as Symantec and McAfee have watched the development of MSE with a wary eye since it had the potential of undercutting their lucrative consumer software business. Allowing small businesses to deploy MSE drew anti-trust fouls from security vendors Trend Micro and Panda Security.

Most concerning to Trend Micro is how Microsoft distributes MSE through Windows Update, a proprietary and compulsory service. Microsoft’s ability to leverage its operating system to drive – or block – security adoption is a concerned shared by nearly all security vendors. However, some vendors such as McAfee and Symantec are taking it in stride, stating that threats necessitate higher level of security that MSE cannot provide.

The McAfee and Symantec perspective are essentially correct, but need to go further. Here’s the ugly truth: Small businesses spend more on anti-virus software than any other security technologies despite becoming subject to regulation such as HIPAA/HITECH, data breach security disclosure laws and PCI. What MSE could do – especially in the vast small business market – is provide rudimentary security protection against anti-virus and malware and open the opportunity for other security vendors to sell intrusion detection, encryption, security management and data loss prevention.

Every technology eventually commoditizes and becomes supplanted by new innovations. Perhaps MSE 2.0 is the harbinger of the end of the lucrative anti-virus market and the beginning of greater adoption of more advanced security protections.