PXS Distribution’s UK director Robert Hall takes a look at why security software is still an important revenue stream for retailers…
We all know that security is a must, but why is it still so important?
Security threats have changed over the years. Instead of viruses that destroy data and hardware, we now have threats that do no visible harm to your system, but effectively steal your private data.
These threats can originate from email, search engine results, websites and social networks such as Facebook and Twitter.
They can also come in the form of links or advertisements for scam sites. This can be for things like your usernames and passwords for sites like Facebook or Twitter, but (and even more worryingly) your bank details too.
There are also other concerns. An important feature in security software is parental control. Parents want to protect more than just their data, they want to protect their children from inappropriate content and what they see and do online.
Another new addition to the average security suite is device control, allowing users to track where their devices are at all times, and even wipe data from phones or tablets in the event of theft or loss.
Most of us use our devices to store photos and images. Security software can protect these with secure online backup.
When you combine these new security threats with the fact that consumers are demanding increasingly more features in their security suite, it is clear that retailers have to keep more of their focus on security software.
The other interesting trend that retailers should start to consider is that with an increasing number of security vendors releasing multi device products at retail, it allows the retailers to maintain some revenues from consumers that now have a PC or a Mac, as well as a smartphone and tablet.
Previously, where consumers might have used a free Android security app for example, they are now able to buy a product from their trusted retailer and it covers all their devices, for example from smartphones to tablets. This is both convenient for consumers, but it will also mean that retailers’ average prices will increase, due to the fact that the traditional one or three user SKUs are being replaced by licenses covering five or more devices.
Margin revenues are also still attractive for resellers and retailers and security software. Electronic Software Distribution (ESDs) make it easier for the channel to provide and manage schemes such as the PXS renewal program, which ensures that the tedium of security software can also be an effective revenue source with minimum involvement and effort for the retailer.