Symantec 2006 Annual Report Download - page 20

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retail distribution channels and for the attention of customers at the retail level and in corporate accounts. In
addition, we compete with other software companies, operating system providers, and network equipment and
computer hardware manufacturers to acquire products or companies and to publish software developed by
third parties.
The competitive environments in which each segment operates are described below:
Consumer Products
Some of the channels in which our consumer products are offered are highly competitive. Our
competitors are sometimes intensely focused on customer acquisition, which has led such competitors to offer
their technology for free, engage in aggressive marketing, or enter into competitive partnerships. During fiscal
2006, pricing for subscriptions increased, while pricing in retail and online stores remained consistent or
decreased.
Our primary competitors in the Consumer Products segment are Microsoft Corporation, McAfee, Inc.,
and Trend Micro, Incorporated. During fiscal 2006, Microsoft launched the beta version of a security suite
that will compete with our consumer products. This security suite includes anti-spyware and antivirus features,
and a backup utility. In addition, Microsoft has recently added security features to new versions of its
operating system products that provide some of the same functions offered in our products.
Enterprise Security
In the Enterprise Security markets, we compete against many companies that offer competing products
to our technology solutions and competing services to our response and support services. Our primary
competitors in Enterprise Security are McAfee, Trend Micro, CA, Inc., Internet Security Systems, Inc., and
Cisco Systems, Inc. In the managed security services segment, our primary competitors are VeriSign, Inc. and
International Business Machines Corporation, or IBM. Recent acquisitions by Microsoft are indicators of its
move into the Enterprise Security market and could lead to the inclusion of antivirus and antispyware
functionality in future versions of its operating system products or to its release of stand-alone enterprise
products.
With core antivirus being a required solution for enterprises of all sizes, we believe that product
differentiation is essential for us to maintain our leadership position. We are focused on integrating next
generation technology capabilities into our solution set in order to differentiate ourselves from the competition.
Data Protection
The market for Data Protection products is characterized by ongoing technological innovation. Many of
our strategic partners offer software products that compete with our products or have announced their
intention to focus on developing or acquiring their own backup, archive, and data restoration software
products. Our primary competitors in the Data Protection segment are IBM, CA, and EMC Corporation.
Storage and Server Management
The markets for Storage and Server Management are intensely competitive. In the areas of storage
management solutions, application and server management, remote management, imaging provisioning, and
asset management, our primary competitors are EMC, Sun Microsystems, Inc., Hewlett-Packard Company,
IBM, Oracle Corporation, and Microsoft.
Services
We believe that the principal competitive factors for our Services segment include technical capability,
customer responsiveness, and our ability to hire and retain talented and experienced services personnel. Our
primary competitors in the Services segment are IBM, Electronic Data Systems Corporation, and EMC.
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