Anti-Virus renewal survey offers an interesting look into licensing

by Steve Ragan - Nov 22 2010, 09:30

GFI Software, the company that purchased Sunbelt and its VIPRE security suite, has published the results of a survey taken in the UK recently, covering software renewals in the anti-Virus marketplace. If given the choice, would you rather pay a lifetime fee or a yearly renewal for your security software?

The GFI survey focused on just over 1,100 UK consumers. However, 40 percent of them said they are prepared to let their anti-Virus subscriptions expire rather than renew. Of those, 15 percent said the reason was due to the complexity of the renewal process or the inconvenience of it.

Software renewal is the lifeblood of the anti-Virus industry. This is how giants like Symantec and McAfee pay their employees and research new technologies. It offers a continuous flow of money that can be counted on. GFI thinks this should change, thus the reason for its survey, which also promotes the Lifetime edition of VIPRE.

The GFI survey said that 40 percent of those who took part are willing to switch vendors and pay a single fee for protection. This is purely a marketing pitch. Yet, is it all hype? If given the same option, one has to wonder how many consumers in the United States would make the same choice.

Several vendors offer completely free anti-Virus protection, but many of them leverage those offerings as a way to turn users into paid customers. In addition, when it comes to renewals, the security vendors who offer both consumer and business protections sometimes treat them as separate sources of income. For example, enterprise licensing and SMB licensing are on a different scale when compared to what a typical home user would pay.

What stood out to us in the GFI survey was the fact that 35 percent of the respondents were not even aware of when their current licenses expire, or if they had already expired.

While the sample set is small, that is still a large number considering that one of the fundamentals in desktop security is to run updated anti-Virus software. A lifetime subscription would help here, as would an automatic renewal process.

The problem with automatic renewals is that many consumers don’t like them. It makes them feel locked to a vendor. Automatic renewals that need reversed are an issue as well, as the refund process for some vendors is a nightmare.

Just last summer, McAfee and Symantec found themselves in a legal battle over renewal fees. Eventually, New York Attorney General Cuomo’s office reached a settlement with them, which included each vendor paying $375,000 USD in penalties and costs.

The Attorney General’s investigation found that the companies failed to adequately disclose the fact that subscriptions would be automatically renewed and that consumers would be charged for subsequent subscriptions.

Information about automatic renewal charges was hidden at the bottom of sales pages or in the fine print of license agreements. Both security vendors have since altered their renewal practices.

Should anti-Virus vendors switch licensing plans? If they did, by offering a lifetime license for a single fee, should it be for both consumer and business offerings? If you could pay a single price, would you? Or do you prefer the yearly renewals?

Let us know in the comments section.

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