Price competition among vendors will continue to lower prices due to the increasing availability of free security software options
Los Angeles, CA (PRWEB) June 30, 2014
Security and protection software has a buyer power score of 4.3 out of 5, representing an advantageous market for buyers. Buyers have benefited from steadily falling prices for security software over the past decade. Free security software has made strong inroads into the market in recent years, and its position as a viable (though lower quality) alternative to paid security software has forced suppliers to lower their prices to remain competitive. In addition, the commoditization of security software has made these products easily comparable. “As a result, several consumer review boards provide regular extensive breakdowns of available security software suites, arming a buyer with knowledge of each product line's relative quality,” says IBISWorld business research analyst Dale Schmidt.
Alternatively, fierce competition has limited the average supplier profit margin, leaving little room to negotiate on price. Suppliers have had to cut prices, even as wage costs rise. Security software vendors must compete with all other software developers to hire the limited number of talented software engineers. The low supply of these engineers has caused their wages to steadily increase, eating into vendor profit margins. “Even so, buyers should expect to receive increasing per-endpoint discounts on large-scale purchases, where licenses for 100 or more users can lead to per-endpoint discounts of 15.0% or more,” says Schmidt.
Unfortunately for the buyer, there exists no workable alternative to security software. To use an internet-enabled device, one must purchase security software or be at high risk of a major security compromise that may leave their device inoperable. However, buyers can easily compare the price, features and quality of security suites to choose the best option at the best price. Major vendors include Avast, AVG Technologies, Avira Operations GmbH & Co. KG and Bitdefender. For more information, visit IBISWorld’s Security & Protection Software procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of security and protection software. Security software publishers develop and distribute antivirus, antikeylogger, spyware removal, encryption and firewall software. These companies may also provide consulting and technical support related to this software.
Recent Price Trend
Product Life Cycle
Total Cost of Ownership
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Market Share Concentration
Buying Lead Time
Key RFP Elements
Buyer Power Factors
About IBISWorld Inc.
IBISWorld is one of the world's leading publishers of business intelligence, specializing in Industry research and Procurement research. Since 1971, IBISWorld has provided thoroughly researched, accurate and current business information. With an extensive online portfolio, valued for its depth and scope, IBISWorld’s procurement research reports equip clients with the insight necessary to make better purchasing decisions, faster. Headquartered in Los Angeles, IBISWorld Procurement serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.