Neowin exclusively revealed Microsoft Morro to the world, today we can unveil that Microsoft's new and free Anti-Virus will be named Microsoft Security Essentials.

The software product, codenamed "Morro" after a beach in Sao Paulo, Brazil, is already being tested by Microsoft employees and a trial version will be made available in September according to sources familiar with Microsoft's plans. Microsoft has officially stated that Microsoft Security Essentials would be available by the end of 2009 at the latest. The company has been trialing internal versions since June 1.

Microsoft shocked the security industry on Tuesday by announcing that it will stop selling its consumer-focused Microsoft OneCare security software. Instead, Microsoft said that it will offer a new free alternative dubbed "Morro" in mid-2009. What does this sudden change in direction mean?

1. Microsoft is cutting its lossesAfter two years of hawking OneCare, the company barely made a blip in consumer security market share and was probably bleeding red ink. It is cheaper to give away Morro than to package, distribute, and promote OneCare.

2. There's a reason to remain in the marketSo why not kill endpoint security altogether? Good question. As long as Microsoft continues to offer Forefront (i.e., its commercial endpoint security product), Morro is a relatively easy thing to support. Alternatively, I can't see Microsoft walking away from any PC software. The PR implications of doing so are too dire.

3. Morro won't kill other alternativesFree is pretty compelling, but it is nothing new. Users could opt for a strong free alternative today called Clam AV, but Symantec, McAfee, Trend Micro, and Kaspersky still do pretty well with consumers. Users either don't know about Clam or believe that "free" software must have a catch. On another note, about 40 percent to 50 percent of consumers still buy security software at their local Best Buy, Frye Electronics, or Staples. With no revenue stream, I can't see Microsoft boxing up Morro and paying for shelf space, so Morro won't even be available to a large percentage of the potential market.

4. Microsoft won't bundle Morro in consumer WindowsTen years ago, I have no doubt that Microsoft would have made security part of the operating system. Heck, Microsoft gave away its antispyware software as recently as 2006. Pursuing this course of action doesn't make sense in this case, however. Aside from the obvious antitrust issues, there is another strategic reality here. Netscape and Internet computing threatened the Microsoft franchise. Symantec Endpoint Protection does not.

Whether industry pundits admit it or not, Microsoft has made great strides in security over the past five years, both in terms of products, processes, and industry leadership. These advances are extremely visible in the enterprise market, but even Microsoft couldn't extend this momentum into the brutal and fickle consumer space. There are too many other fast-growing, highly profitable market segments for Microsoft to pursue, so it simply makes no sense to keep fighting in a crowded market with dwindling margins.

Microsoft consumer security may become free, but expect to hear a lot less about Morro once Microsoft pulls OneCare from retailers' shelves.

**Information from here.

REDMOND, Wash. — Nov. 18, 2008 — To address the growing need for a PC security solution tailored to the demands of emerging markets, smaller PC form factors and rapid increases in the incidence of malware, Microsoft Corp. plans to offer a new consumer security offering focused on core anti-malware protection.

Code-named “Morro,” this streamlined solution will be available in the second half of 2009 and will provide comprehensive protection from malware including viruses, spyware, rootkits and trojans. This new solution, to be offered at no charge to consumers, will be architected for a smaller footprint that will use fewer computing resources, making it ideal for low-bandwidth scenarios or less powerful PCs. As part of Microsoft’s move to focus on this simplified offering, the company also announced today that it will discontinue retail sales of its Windows Live OneCare subscription service effective June 30, 2009.

“Customers around the world have told us that they need comprehensive, ongoing protection from new and existing threats, and we take that concern seriously,” said Amy Barzdukas, senior director of product management for the Online Services and Windows Division at Microsoft. “This new, no-cost offering will give us the ability to protect an even greater number of consumers, especially in markets where the growth of new PC purchases is outpaced only by the growth of malware.”

Built on Microsoft’s award-winning malware protection engine, “Morro” will take advantage of the same core anti-malware technology that fuels the company’s current line of security products, which have received the VB100 award from Virus Bulletin, Checkmark Certification from West Coast Labs and certification from the International Computer Security Association Labs. The new solution will deliver the same core protection against malware as that offered through Microsoft’s enterprise solutions, but will not include many of the additional non-security features found in many consumer security suites.

Windows Live OneCare, one of the first all-in-one suites to be launched in the consumer market, includes a number of non-security features, such as printer sharing and automated PC tune-up. By shifting to focus on the core anti-malware features that most consumers still don’t keep up to date, “Morro” will be able to provide the essential protections that consumers need without overusing system resources, and will help more consumers have better protection against online threats.

“Because uptake of standard anti-malware is low around the world, particularly in developing nations, the availability of basic protection for anyone who wants it is all the more important,” said Roger Kay, founder and president of Endpoint Technologies Associates. “By offering such basic protection at no charge to the consumer, Microsoft is promoting a safer environment for PCs, service providers and e-commerce itself, since it is through unprotected PCs that the worst threats are introduced to the system as a whole.”

“Morro” will be available as a stand-alone download and offer malware protection for the Windows XP, Windows Vista and Windows 7 operating systems. When used in conjunction with the ongoing security and privacy enhancements of Windows and Internet Explorer, this new solution will offer consumers a robust, no-cost security solution to help protect against the majority of online threats.

Windows Live OneCare will continue to be sold for Windows XP and Windows Vista at retail through June 30, 2009. Direct sales of OneCare will be gradually phased out when “Morro” becomes available. Regardless of their method of purchase, Microsoft will ensure that all current customers remain protected through the life of their subscriptions.

More information is available on the Windows Live OneCare Team Blog at http://windowsonecare.spaces.live.com/.

Founded in 1975, Microsoft (Nasdaq “MSFT”) is the worldwide leader in software, services and solutions that help people and businesses realize their full potential.

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**Information from here