Russian Kaspersky Lab offers antivirus protection in U.S.

SAN FRANCISCO -- In his quest for a bigger share of the highly competitive computer-security market, Eugene Kaspersky treks to 20 to 30 countries a year, promoting the company bearing his name and warning the world about cybercrime.

Cybercrime "is everywhere, and the crooks are getting more organized," says Kaspersky, co-founder and CEO of Moscow-based Kaspersky Lab. "It isn't just in Russia."

The 11-year-old computer-security company, which made its name in its native Russia and Germany, is now setting its sights on the U.S. and elsewhere after establishing a beachhead of retailers in North America the past few years.

In August, his Kaspersky Lab introduced a slew of consumer products in North America, based on its well-regarded security software. It followed that up with an advertising blitz online and in print in the U.S. this fall as it takes on industry giants Symantec and McAfee. The up-and-coming computer-security company is slowly gaining share — based on market and unit sales in the U.S. and worldwide.

Kaspersky is the only major vendor to improve retail sales of antivirus and computer-security suite software in the U.S. this year. Its sales soared 137%, to $15.5 million, through August, according to The NPD Group.

The company has succeeded in large part because in 2004 it was the first to identify a major shift by hackers to cybercrime, security experts say, and it tapped into a growing audience of consumers who were willing to pay extra for a security-software program to protect their PCs.

When Kaspersky made its pitch to retailers in the spring of 2006, many were skeptical about "another Internet security product on their shelves," says Steve Orenberg, president of Kaspersky Lab. "But Eugene said two things: The threat was changing, and the sophistication of the technology was changing."

In 2006, 200 retail stores in the U.S. and Canada carried Kaspersky products. Today, about 15,000 do.

Kaspersky has recruited retailers and distributors, such as Best Buy, Fry's Electronics and Staples, by giving them more attractive profit margins and marketing and technical support. "It's the tender, loving care model," says Jon Oltsik, senior analyst at Enterprise Strategy Group (ESG).