July 10, 2006

Q&A: McAfee CEO on battle with Microsoft

George Samenuk says company will hold its own against Microsoft

George Samenuk, the chairman and chief executive of McAfee Inc., is not losing any sleep over Microsoft Corp.'s impending entry into the security software market.

Microsoft wants to muscle its way into the market with Windows Live OneCare, a set of software and services designed to protect computers from viruses and other malware. Samenuk is not overly concerned, saying the effort falls short of what customers need. The recently released beta of Falcon, McAfee's next major software release, offers features that rivals Microsoft Corp. and Symantec Corp. won't be able to match when it hits the market in August, he said.

Samenuk sat down with IDG News Service during a recent visit Beijing to discuss Microsoft's plans to enter the security software market and McAfee's response.

IDG News Service: Microsoft is clearly taking the issue of security more seriously these days. How is McAfee going to respond to increased competition from Microsoft?

George Samenuk: Competition is always good for the customer in any industry. When we look at Microsoft entering the security space it will be good for all of the competitors because it will make us better.

When you look at their product offerings, take their consumer offering for example, it doesn't include antispam. it doesn't include antiphishing. It doesn't include protection against identity theft, someone stealing your financial records or your medical records.

When we look at our offerings, they are fully integrated comprehensive security offerings that offer full protection, not half protection. For consumers, one of the most annoying things we get everyday is spam. How can we have a consumer product without antispam?

Do I worry about Microsoft? Yes. But I worry more about protecting customers. Having fully integrated product lines for consumers, small businesses and large enterprises will be the differentiating factor for McAfee. Certainly, some unaware consumers may go with Microsoft, however I think computer users, Internet users are savvy enough that they know they need total protection.

Two weeks ago, Microsoft announced 20 new vulnerabilities in one day. I'm not sure corporations and governments are going to trust Microsoft with their security when they have these new vulnerabilities announced every month.

IDGNS: Microsoft executives have a tough sales job ahead of them?

Samenuk: You have to ask them that. Security is a very competitive marketplace. You've got to deliver high-quality products every day to protect customers and McAfee does that.

IDGNS: McAfee has been stronger in the corporate market than it has in the consumer market. What can the company do to get a bigger chunk of the consumer market?

Samenuk: For 10 consecutive quarters we have grown faster than Symantec in the consumer market. We weren't going to beat them in the retail stores because they had a bigger presence than us. Four years ago we elected to fight them through Internet service providers. We had an offering and they did not.

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