AVG Technologies Acquires DroidSecurity, Teams with Google on Internet Security, (LinkScanner, AVG Security Toolbar)

AVG Technologies has yet to go through with their Initial Public Offering ( IPO) (it’s still business as usual on both the London Stock Exchange and Warsaw Stock Exchange, despite this!) http://kensek.blogspot.com/2010/07/avg-technologies-prepares-to-go-public.html for more information), Nonetheless, while the AVG Technologies IPO has been on hold, they have been busy.

On November 10, AVG Technologies announced the acquisition of DroidSecurity, a provider of tools and services to protect Android devices. On November 19, AVG Technologies announced that they were they were going to partner with Google broaden the search functionality of AVG’s Security Toolbar and AVG LinkScanner. http://www.avg.com/us-en/press-releases-news.ndi-284377 http://www.avg.com/us-en/press-releases-news.ndi-197

A December 30 AVG Technologies blog discussed, in part, how companies like AVG are working to make sure that additional security is available to protect smart phone users. http://jrsmith.blog.avg.com/2009/12/how-will-smart-phones-and-social-networking-affect-cybercrime.html This acquisition jumpstarts AVG’s role in protecting users on the Android™ operating system.

Prior to the DroidSecurity acquisition, mobile protection was a gap in AVG Technologies' product portfolio. Competitors have been offering protection for awhile (not for Droid obviously). For example, as paid products - Trend Micro offers Trend Micro Mobile Security (Symbian), Symantec offers Norton Smartphone Security for Symbian and Windows Mobile, Avast Mobile Edition (Palm, Windows CE, and Windows Mobile 5), Kaspersky Mobile Security (Windows Mobile, Symbian (on Nokia).

Protecting Android devices presents a nice opportunity for monetization (cutting to the chase, revenue!. According to Digitimes Research - Smartphones, tablet PCs and notebooks will all become the mainstream terminal devices in the mobile Internet market in the future with smartphone shipments having a chance to reach 800 million units in 2013. This is more than double from 2010, with tablet PCs at 100 million units and notebooks at 300 million units. http://www.digitimes.com/news/a20101118VL201.html

DroidSecurity has both free (over 4.5 million downloads) and paid ($9.99 US) version of their product. The pitch to upgrade:

• Complete protection from SMS spam, scams and phishing attempts
• VIP support
• No disruptions or advertising

DroidSecurity is a provider of mobile security solutions, for all Android™ devices (smartphones, e-readers, tablets and appliances). For more information on DroidSecurity http://www.droidsecurity.com/

AVG Facebook Fans, Pleased With the Switch to Google, Not As Pleased With Toolbar

There were a number of people clicking “like” on AVG’s fan page regarding the announcement (the flip side of this is that there are people who will click like on anything. There is no dislike option). For those taking the time to comment, there were a number of people pleased that Yahoo will no longer be the search engine installed with the security toolbar. There was also a significant number of people (around 25%), who had less than positive comments regarding toolbars, in general.

One Facebook fan commented, "Having "search" functions in tool bars are redundant. All browsers have selectable search bars built in now. All most ‘toolbars’ do is eat up memory and take up space.” Toolbar users will be able to use Yahoo on the AVG Security toolbar for another six months. Based on fan comments, though, it looks as if people will switch sooner rather than later.

Note that when people install AVG products, the box to install the toolbar is pre-checked. So people must actively opt out in order to not have it installed on their laptop/PC. It is an optional install and there are support pages on the AVG site and the web explaining how to uninstall it, for those who don’t wish to use it.

Possible Reasons for the Switch from Yahoo to Google

• From a business perspective, the Google search engine is a superior engine.
• The Google search engine has 2/3 of market share in the US. Yahoo has only about 1/6 of the market. http://www.comscore.com/Press_Events/Press_Releases/2010/11/comScore_Releases_October_2010_U.S._Search_Engine_Rankings

• This may increase AVG user’s installing/retaining/using the toolbar for searches and other purposes on the bar.
• AVG’s monetization opportunities, after product revenue, including OEM revenue, are on the toolbar, to a large extent.

It would be interesting to be able to compare the Yahoo contract to the Google contract to see whether AVG Technologies will accrue less revenue from Google on a “per something” basis, but will make up for it in volume. Customer satisfaction with the toolbar should increase. In negotiations, Google probably was the 800 pound gorilla.

For more information on the AVG Security Toolbar, go to http://www.avg.com/us-en/special-toolbar-first-run-tlbrc-v2-mcr7