Melissa not necessarily bad for everyone
By Margaret Kane
March 30, 1999
ZDNN

The Melissa virus spelled bad news for just about every company that uses e-mail.

Unless, of course, you're an anti-virus company.

While utility makers aren't exactly gloating about the electronic contagion that has downed hundreds of e-mail servers, analysts say a widespread outbreak could help boost their profiles in the short term, and boost sales in the long term.

"Our main focus right now is helping customers, and helping other users to clean their systems so they don't spread ..." said Susan Orbuch, director of communications at Trend Micro Inc. in Cupertino, Calif. "If sales come out of this down the road fabulous, but that's not our focus."

Market researcher International Data Corp. is predicting that the anti-virus software market, which was $900 million in 1997, will hit $3 billion by 2002, as companies rely more and more on the Internet.

The $900 million anti-virus software market will hit $3 billion by 2002, as companies rely more on the Internet -- International Data Corp.

"It's a cost and value issue. Smaller companies were saying, 'I don't want to spend the money for an e-mail gateway.' " said Chris Christiansen, analyst at IDC Framingham, Mass. "But all you need is one infection of this type to make it worthwhile." E-mail gateways typically have virus-detection software built in.

That message was not lost on investors, who boosted shares of anti-virus companies Symantec Corp. (Nasdaq: SYMC) by 8 percent and Network Associates (Nasdaq: NETA) by 3 percent Monday. The stocks were back down again today, however, as investors moved on to new news.

"In the short run, a well-publicized attack like this will help lift the stock. But in the long term we're a believer that these solutions are really fundamental [to business] as every one accepts the Internet as a medium of information exchange," said Kevin Wagner, analyst at Adams Harkness in Boston.

For magazine subscription savings, risk-free trial issues, newsletters, and more, click here!