Anti-Malware.ru, an independent analytical organization that focuses on information security software, announces the publication of its latest annual report “Analysis of the Russian antivirus protection market 2007-2008”

The final figures for the Russian antivirus software market in 2008 amounted to$210 million, which represents an increase of 57% compared to the last year. Though the growth rate of the market becomes slower (94% last year), it remains rather high.

Kaspersky Lab continues to lead the Russian market, with sales of $98 million and a market share of 46.6% in 2008. This result was achieved primarily due to the success of the company in retail: last year Kaspersky Lab presented a new version of products for home users. Good results are also shown in SMB and government segments.

Eset got the second place with sales volume of $43 million and with a market share of 20.5%), due to the great results in retail that is approximately 50% of all their sales volume. Moreover, Eset continues to actively develop the partner system and to carry out an aggressive marketing policy.

The third position on the market is occupied by Symantec with sales volume of $31 million. Its market share decreased from 18.4% to 14.7% in 2008. The company received most of its profits from enterprise segment, but it wasn’t successful in retail as Kaspersky Lab or Eset.

The market share of Trend Micro continues to decrease in 2008. The reason for that lies in internal problems of the company’s exclusive distributor in Russia, and in a lowering of the attractiveness of the company’s products for its partners. McAfee has the similar problems in Russia. The situation was about to change in 2008 — McAfee has opened an official representative office in Russia, but it has not still effected on the market.

Panda Security closes the list of the main players on the Russian antivirus market with the share of the market of approximately 1.5%. The share of this company is decreasing from year to year. The rest of the players have shares not exceeding the 1% barrier and therefore they are not included in the detailed analysis.

Overall, the top three companies (Kaspersky Lab, Eset and Symantec) together earned $172 million, accounting for 82% of total antivirus software sales in Russia. This fact points to a virtual monopoly of the market by those vendors, which push out of the market the other players.

It is expected, that the market growth will be much slower than it was during the last several years because of the global economic crisis in 2009 — it will hardly exceed 30%. The Anti-Malware Test Lab experts forecast that sales volumes of antivirus software will reach $270 million in Russia in 2009.

“In spite of the global economy recession, the antivirus market will continue to grow. We believe that antivirus software is one of the key IT services for any business and people don’t save money on IT security even in tough economic times. Those vendors, who sell mostly to large enterprises, will be in much better position this year than companies focused on retail and SMB. In our opinion the IT security budgets in businesses will not be considerably cut this year, while consumers will tend to save on such things as software”, said Sergey Ilyin, Managing partner of Anti-Malware.ru.

Anti-Malware.ru, an independent analytical organization that focuses on information security software, announces the publication of its latest annual report “Analysis of the Russian antivirus protection market 2007-2008”.

The final figures for the Russian antivirus software market in 2007 amounted to $131 million, which represents an increase of 94% on 2006. The key factors behind this market growth are the continued development of the corporate sector and retail sales, an increase in the amount of state orders and a reduction in pirated software.

Kaspersky Lab continues to lead the Russian market, with sales of $60.2 million and a market share of 45%. It has consolidated its position significantly, taking almost another 9% share of the market from its rivals in the space of a year.

Symantec is in second place with sales of $24.5 million. Its share of the Russian market fell by 9.3% and now stands at 18.4%. Symantec’s market share is now 2.5 times less than the leader Kaspersky Lab.

Trend Mircro and Dr.Web also lost ground in the Russian market and their growth rates are now significantly below the market average. Their market share fell by 4% and 2.9%, with sales of $8.6 million and $8.4 million respectively. That allowed ESET to overtake them and claim third place with a market share of 13.7% and sales of $18.3 million.

Overall, the top five companies earned $120 million in 2007, accounting for 90% of total antivirus software sales in Russia, which points to a virtual monopoly of the market by those vendors.

In 2007, as in the previous year, two vendors – Kaspersky Lab and ESET – strengthened their positions. For the rest of the companies on the market 2007 was a less successful year. Symantec (9.3%) suffered the largest loss of market share, followed by Trend Micro (4%) and Dr.Web (2.9%). F-Secure, a market newcomer, managed to win approximately 1% of the market in 2007.

The experts at Anti-Malware Test Lab forecast growth of 60% for the Russian antivirus software market in 2008, which means sales volumes will reach at least $210 million. Changes are also expected in the top five ranking of vendors. Given the right market conditions, ESET should continue to demonstrate a high growth rate that will take it ahead of Symantec. The success of Dr.Web’s AV-Desk service should also see it outstrip Trend Micro in the race for fourth place.

Other players on the market shouldn’t be forgotten. McAfee has opened an official representative office in Russia and has announced its intention of investing substantial sums in the Russian market. McAfee is working actively with its partners, though when compared to the current activity of its competitors no significant breakthrough can be expected for 2008.

Another relatively new arrival, BitDefender, has a lot of potential, but it is unlikely to demonstrate any significant growth in 2008. In Russia BitDefender and ESET have the same owner, which means the former will not threaten its more successful “sibling”.

Dear friends and colleagues!

I need to make the following very important statement. Unfortunately, the Russian representative office of ESET, backed by Leta-IT, is continuing to discredit the Anti-Malware.ru portal, the Anti-Malware Test Lab and me personally.

Recently, it has come to my attention that ESET, at the suggestion of its Russian subsidiary, is conducting a propaganda campaign (particularly in the West) in which they claim the portal is associated with Kaspersky Lab. Their actions very nearly jeopardized the alliance with AV-Comparatives. Evidence of the ESET subsidiary spreading false or distorted information has come to my notice on several occasions over the last few months.

The final straw was when a scanned image of my passport started circulating with my real name (rather typical of the company’s style, wouldn’t you say?) in an attempt to prove that I work at KL. I’ve never actually tried to hide the fact that I work for KL (read here).

What’s all this about, you may ask. What kind of threat does Anti-Malware.ru pose to ESET? It’s all perfectly simple:

1. Our tests. The results have put a proverbial spanner in the works when it comes to ESET’s strategic advancement of their products. Say what you like, but at the end of the day, their products don’t perform as well as their advertising or web site would have you believe.

2. An unsuccessful takeover attempt. In a word, it is straightforward blackmail: "Sell us your portal or we’ll shut you down by waging an information war!" Alexander Chachava, CEO of Leta-IT Company, and Dmitry Popovich, ex-CEO of Eset Russian, were involved in the negotiations. The latter hinted several times that the portal would suffer the consequences if there was a refusal to sell. I can’t stand being threatened or blackmailed. So go ahead, try and shut us down! 

In connection with the facts outlined above, the Anti-Malware Test Lab is forthwith severing all ties with the Russian subsidiary of ESET and Leta-IT.

This post in my blog is the reaction to some rumors spreading across anti-virus industry. I must clarify this question for all antivirus vendors and our readers.

Rumors about affiliation with antivirus vendors
(e.g., Kaspersky Lab, Symantec or Avira)

As an individual, I have worked for Kaspersky Lab as an outside expert. I have also worked with a Russian partner of Symantec, whose name I cannot disclose under the terms of our agreement.

As regards independence, the work I did for these companies never overlapped with my Anti-Malware Test Lab work and was in the field of marketing research.

My work for these companies was in the area of market research and other marketing projects. For example, I prepared antivirus product functionality comparisons and did other market research for Kaspersky Lab, as well as some marketing audits. In the case of other companies, my work had to do with developing analysis and promotion concepts.

Sergey Ilyin is my official pseudonym

Publicity imposes certain constraints and can be a nuisance not only to public persons but also to those around them. With this in mind, when first developing the project I decided to use a pseudonym in order to protect my personal life from unnecessary pressure from players in Russia's antivirus market.