Microsoft is to cancel its all-in-one security product, Live Onecare, from 30 June 2009, and replace it with a free tool.

Microsoft claims that the free tool, currently known as Morro, will be more effective in protecting consumers against viruses and other PC threats because paid-for products can be difficult for some people to maintain.

Amy Barzdukas, senior director of product management at Microsoft said: " Consumer security models are based on annual subscriptions that need a credit card to renew. Given that many consumers in markets such as Brazil, India and China do not have access to those types of payment services, it can be difficult to secure and maintain quality malware protection,” she said.

However, security firm F-Secure does not seems concerned by the prospect of a free Microsoft security product in the near future. A representative said the company “had no plans to launch a free anti-virus offering”.

"Microsoft is now joining other free anti-virus vendors that already have a significant user base. The influence of the free anti-virus market on F-Secure is not anticipated to change significantly due to Microsoft’s entry," he said.

As well as Onecare, Microsoft has cancelled Equipt - a subscription service that leased Microsoft Office and Onecare to home users for a low fee. Equipt was launched in the UK less than a month ago.

The company said that sales of Equipt would end within 90 days and subscription services would come to an end in the first half of 2009.

However, despite reports that US customers would be allowed to keep their copy of Microsoft Office 2007 Home and Student Edition, Microsoft would not confirm whether UK customers would get the same deal.

"Microsoft will ensure that customers who subscribed to this service continue to get value from it through the end of their subscription and will provide detailed information about customer options early next year," the company said in a statement.