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Microsoft’s Pay Service to Target Spyware

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Times Staff Writer

Microsoft Corp. on Thursday said it would release a service to fend off Internet viruses and spyware -- addressing long-standing complaints about the security and reliability of the software running most of the world’s computers.

But Windows users would have to pay extra for that protection; the world’s largest software maker plans to charge a subscription fee for the service, dubbed Windows OneCare.

Microsoft began distributing a test version of the service to employees this week and plans a public test this year. The service would be updated every hour with the profiles of new viruses and spyware, programs that can clog or take over computers. It would also include an improved firewall to deter hackers.

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Pricing for the product has not been determined.

“Microsoft decided there are far too many people that are going without protection,” Gartner Inc. analyst Neil MacDonald said. “Anytime there’s a virus or a worm, it gives Microsoft a black eye.”

The announcement came three months after Microsoft Chairman Bill Gates said the company would charge for the antivirus technology it recently acquired while continuing to offer free anti-spyware software.

In deciding how to sell the product, Microsoft had some sticky issues. Technologists often fault the company for the security flaws in Windows and say Microsoft should improve it. But if the company bundled the antivirus program into Windows, it might have triggered antitrust action by rival security firms such as Symantec Corp.

For that reason, MacDonald said, Microsoft would charge an undisclosed annual fee and wrap in other functions, pitching the combination as more of a means of improving the everyday computing experience instead of a security cure-all.

Ryan Hamlin, Microsoft’s general manager for technology care and safety, said 70% of Internet-connected computers didn’t have up-to-date antivirus, firewall and anti-spyware protection. Other firms are beginning to offer similar products, and Hamlin said Microsoft’s version would be priced competitively.

Combination products by other companies can cost $50, with a $25 annual renewal fee.

The service would work only with Windows XP machines that have been updated with Service Pack 2 or subsequent versions of Windows.

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Microsoft has pursued subscription services to get steady income even after the market is saturated, said analyst Matt Rosoff at Directions on Microsoft.

Perhaps the riskiest part of the move for Microsoft is that the service would come with free phone and e-mail support, for which costs can be unpredictable and, at times, extremely high. Microsoft hasn’t provided much free support, and Hamlin said the company would do some hiring.

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