Microsoft is getting ready to unveil its long-anticipated free antivirus software, which will compete with products sold by Symantec and McAfee. On Wednesday, a Microsoft spokesman said the world's biggest software manufacturer is testing an early version of the product with its own employees. Microsoft would "soon" make a beta available via its website, he added, but declined to provide a specific date. Symantec's shares fell 0.5 percent on Nasdaq, while McAfee's fell 1.3 percent on the New York Stock Exchange. Microsoft's shares were up 2.1 percent. The Nasdaq Composite Index was down 0.47 percent. Investors are closely monitoring the free service — code-named Morro, after Brazil's Morro de Sao Paolo beach — amid concern that it could hurt sales of products from Symantec and McAfee, which generate billions of dollars of revenue a year protecting Windows PCs from attacks by hackers. "It's a long-term competitive threat," said Daniel Ives, an analyst with FBR Capital Markets, although he added the near-term impact was minimal. Microsoft has said Morro will offer basic features for fighting a wide range of viruses, which would likely make it comparable to low-end consumer products from Symantec and McAfee, which cost about $40 (£24) per year. Their top-selling products are security suites that come with features including encryption, firewalls, password protection, parental controls and data backup. Three years ago, Microsoft entered that market with Live OneCare, which was a commercial flop. In November it announced plans to kill the product suite, saying it would launch the free Morro service by the end of this year. Analysts have said they are looking forward to Morro's beta to see exactly how its features compare to those in products from competitors. Microsoft has said Morro will provide protection from several types of malicious software, including viruses, spyware, rootkits and trojans. Officials with Symantec and McAfee have said they do not see Morro as a threat. "Microsoft's free product is basically a stripped-down version of Live OneCare it pulled from the shelves," said Symantec consumer division president, Janice Chaffin. "A full internet security suite is what consumers require today to stay fully protected." Joris Evers, a spokesman for security software maker McAfee, said his company is already enjoying strong growth, despite competition from free antivirus products.
"On a level playing field, we are confident in our ability to compete with anyone who might enter the marketplace," he said
