Microsoft Scoops Up AV Vendor

Microsoft has been coveting its own AV technology for some time to embed into its Windows server products, fortifying them against e-mail- and instant-messaging-based virus and worm attacks. The Redmond, Wash., software giant toyed with developing its own AV product, but ultimately went the buy vs. build route after piloting Sybari's solutions internally for the past eight months, officials say.

Sybari, a privately held company based in East Northport, N.Y., makes a palette of security solutions -" antivirus, antispam and content-filtering -- that are aimed at protecting e-mail, IM and document-sharing at the server level. The company sells its Antigen-branded products through a worldwide partner channel and has offerings that protect most Microsoft products, from Exchange Server to Office, as well as other messaging platforms, such as Lotus Notes.

In a statement today, Mike Nash, corporate vice president of the Security Business and Technology Unit at Microsoft, said the acquisition builds on the security protection that Microsoft is trying to bring to its enterprise customers.

"We're excited to be able to provide customers with a server-level antivirus solution that delivers advanced file and content-filtering capabilities and the use of multiple scan engines," said Nash, in his statement.

A Symantec official downplayed the impact of the acquisition, citing the range of security issues facing enterprise companies and the breadth of solutions Symantec has created to address them.

"What Microsoft has done is acquire a framework that will allow third-party vendors to plug into Exchange, but Sybari is not a security product per se," says Ajei Gopal, senior vice president of technology and corporate development for Symantec. "You need to back that up with an extensive security infrastructure, and we've spent a tremendous amount of money to build that, so we're very comfortable with our position in the market."

What the deal means to partners of Symantec, McAfee and other third-party AV vendor short-term is probably not much. However, if the deal passes regulatory muster, the acquisition will no doubt give Microsoft one more piece of key technology to blend into the ubiquitous Windows machine.

"While past acquisitions by Microsoft have done little to enhance their security product portfolio, this acquisition will put Microsoft in a better position to compete with McAfee and Symantec," said Joel P. Fishbein, Jr., a financial analyst at Janney Montgomery Scott, in Philadelphia.

Sybari will continue its operations as is until the deal pass regulatory hurdles and is finalized, according to Microsoft.

Luc Hatlestad contributed to this story,