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I'm not surprised. Serial variant production lines have been pumping out new malware samples in industrial quantities. Back in early 2007 I released a whitepaper for IBM covering the mechanisms many of the drive-by-download sites were using to create and deploy "unique" malware samples on a per victim visit basis. I'm just glad that one of the anti-virus companies has "confessed" to the problem.
Unfortunately the problem is only going to get worse, and these "cloud-based" service proposals are probably going to provide as much protection against the real botnet threat as a real fluffy-white cloud does against a bullet.
I blogged in more detail on the topic over at the Damballa site. Half of New Viruses Only Useful to Cyber-criminals For A Single Day.
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