Eyeing Expansion, Kaspersky Ties up with Microsoft in China

Kaspersky Lab is on the point of offering free anti-virus service to more Chinese netizens as it looks to expand its presence in one of the world's biggest Internet market.

On August 25, the Russia-based anti-virus software heavyweight announced that it would join forces with Microsoft Corporation (NASDAQ: MSFT) to provide anti-virus software for the numerous Windows Live Messenger users in China for free,.

MSN users throughout the country will get access to a Kaspersky Anti-Virus 2010 version for half a year after logging on the instant messenger from now on, said Kaspersky, noting that at least 20 million MSN users in the country will benefit from the service. MSN, a flagship product of the US-based software titan, is the No. One instant messaging platform in the world by user number.

The strategic partnership, according to market observers, is part of the Russian anti-virus software developer's ongoing efforts to enlarge its foothold in the world's most populous Internet market.

This is the second time for Kaspersky to roll out bundled anti-virus service in the country after a collaboration with Beijing-based Qihoo.com came to an end in 2008, pointed out a market observer.

Tapping into China in 2002, Kaspersky did not see its user number in the new market increase by leaps and bounds until July 2006, when it announced a partnership with 360.cn, an Internet security platform under the aegis of Qihoo.com.

Under the cooperation, Kaspersky made its sparkling service available to 360.cn users in the country for free. In the next two years, the company lured as many as 40 million users in the country, ranking second among all the players in the Chinese anti-virus industry.

The cooperation with Microsoft came after an unsatisfactory attempt to adopt an anti-virus service-for-sale model in the country, said industry insiders.

After ending its partnership with Qihoo.com, Kaspersky put different versions of anti-virus software up for sale in China at prices ranging from CNY 120 to CNY 320. However, that operating model appeared to be less favored in the country. Earlier statistics showed that unlicensed Kaspersky user number in the country amounted to 80 million at the beginning of 2009.

The packaged anti-virus service will enable Kaspersky to court for users at a time when the number of pirated Kaspersky users is growing rampantly, according to another market observer.

(USD 1 = CNY 6.83)

Source: www.enet.com.cn (August 26, 2009)

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