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Microsoft announced yesterday that it was scrapping its Live OneCare package in favour of Morro, to be released in the second half of 2009.

The news sent shares in major players Symantec and McAfee tumbling, but Microsoft moved quickly to deny Morro was a competitor.

"This

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is really focused on the 50% to 60% of PC users who don't have, or won't pay for, anti-virus protection, anti-malware protection," says Amy Barzdukas, senior director of product management for Microsoft's Online Services and Windows Division.

Barzdukas backs up this claim by pointing out that Morro only includes anti-malware software, whereas security suites from Symantec and McAfee include encryption, firewalls, password protection, parental controls and data backup programs.

Although Morro will be offered around the world, the major focus will be on emerging markets such as Brazil where a large number of consumers cannot afford to buy anti-virus suites, Barzdukas says.

McAfee has also dismissed Morro as a rival: "With OneCare's market share of less than 2%, we understand Microsoft's decision to shift attention to their core business. As the leading dedicated security company, we know the focus and commitment it takes to provide world-class protection for consumer, SMB and enterprise customers."