Kaspersky launches anti-virus software for less than Rs 600

New Delhi

March 5th, 2008

Kaspersky has become the first ever company to provide Internet security
software at an affordable price to customers and channel partners. The company
is offering one of its products -Anti-Virus Internet Security for three users at
an MRP of Rs 1,450 while the margin-operating price (MOP) of the same product
for dealers is less than Rs 600. In comparison the MOP of a three user
anti-virus internet security from Symantec is valued at Rs 2,400, McAfee offers
the same product at an MOP of Rs 1,700, Trend Micro's is valued at Rs 2,000 and
Panda's is available at Rs 1,500. Following the move by Kaspersky, E-scan has
lowered the price of their Internet security software. According to partners
this initiative will push the other vendors in this space to lower their prices
as well.

Talking about this, Q A Tapia, Head-Sales, India, Kaspersky, stated that
vendors today are offering anti-virus, anti-spyware and other related software
at a price range of Rs 2,000 to 3,000. While a PC is available at affordable
prices, uploading software alone leads a customer to shell out huge sums in
comparison to the hardware. This deters the customers from buying original
anti-virus software and they end up buying pirated versions.

"We dropped the prices of our products because India is a price
sensitive market and we want our customers in India to enjoy the best in quality
security products at an affordable price range. This will further discourage
them from buying pirated versions. In addition to this we are also looking to
lower the prices of our other products," opined Tapia.

In their bid to support the channel partners, Kaspersky is offering the same
product to the dealers at an even lesser price thus enabling them to earn huge
margins. Indicating the same, Tapia mentioned that the channel partners have to
operate at minimal or no margins and this leads to an unhealthy environment
within the industry, which is not good for their (partners') business.

"We wanted to empower the channel so that they can support the product
and drive it aggressively in the market," said Tapia.

The partners on the other hand are in a buoyant mood. G Suresh, Director of
Chennai-based E-caps Computer India said, "They are doing a fantastic job
by dropping the prices, and this will increase competition among other vendors
and lead them to drop their prices accordingly. Performance wise the product has
a good acceptance. By selling other vendor's products we earn margins as low as
between Rs 50 to 100, while with Kaspersky's software we make margins in the
range of Rs 400 to 300. In the past eight to nine months alone I have sold 6,000
to 7,000 licenses and the demand is good.

Alok Gupta, CEO of Delhi-based Softmart Solutions mentioned, "This is
the first time that a security software providing company is offering an
Internet security price at an immensely affordable price. We as dealers are
happy when it comes to driving these products in the market as it is giving us
enough margins to operate on. Other vendors will have to think in this direction
as well. One of the vendors, E-Scan has already reduced their prices."

"People are well aware of the technical superiority of the product and
because this product is a three user pack and can be used in three PCs, it has
an advantage over other vendors' products. Kaspersky's initiative will
discourage the customers to buy pirated software and this in turn will generate
good amount of business for us," opined Alok Gupta, MD of Mumbai-based ACI
Infocom.

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