To help fight spyware, malicious software that threatens the security and privacy of PC users, Microsoft acquired Giant Company Software in Dec. 2004. Microsoft intends to release a beta of an antispyware program based on Giant’s technology for users of Windows 2000, Windows XP, and Windows Server 2003 in the near future but provided no information on the product’s packaging (whether it will ship as a separate product or an integral part of Windows, for instance) or its cost.

On the surface, the acquisition appears similar to the acquisition of antivirus vendor GeCAD in June 2003, but the impact of each acquisition on Microsoft products is different. Microsoft says it will bring an antispyware product to market as soon as it has undergone a secure code review and threat analysis (to find any potential problems or vulnerabilities in the code). In contrast, Microsoft has released no products derived from the GeCAD assets, other than some tools to remove viruses and worms from infected computers. A single product that could find all malicious software on a computer, including viruses, worms, and spyware could be desirable; currently users must have both antivirus and antispyware software installed, which separately scan files coming onto a computer.

Technical employees of Giant Software will join the Security Business Unit. Financial terms of the acquisition were undisclosed, although Microsoft acknowledged that a preexisting legal agreement between Sunbelt Software Distribution and Giant means Microsoft will provide spyware signature updates to Sunbelt through July 2007.

Background on spyware can be found in "Spyware Growing Security and Privacy Problem" on page 14 of the Oct. 2004 Update.

For the acquisition announcement, see www.microsoft.com/presspass/press/2004/dec04/12-16GIANTPR.asp.