IBM and FalconStor (FALC) Team Up to Create Backup Appliance for the Midmarket

FalconStor VTL With Deduplication to be Integrated With IBM Servers and Storage for Midmarket IBM Customers

MELVILLE, N.Y., June 3, 2013 (GLOBE NEWSWIRE) — FalconStor Software, Inc. (Nasdaq:FALC), a market leader in disk-based data protection, today announced that it has entered into a partnership with IBM through IBM’s Indirect OEM (IOEM) program. Under the program, FalconStor^® Virtual Tape Library (VTL) with deduplication software will be integrated with IBM servers and storage to address the needs of IBM midmarket customers.

The new FalconStor VTL IBM Series appliance will be integrated by Avnet Embedded (see related press release, “FalconStor Teams with Avnet Embedded to Create Global Supply Chain“) and will be sold through FalconStor’s channel as well as through IBM business partners who sign up with FalconStor. The new product will be available in North America initially and then throughout the rest of the world early next year.

“In the six years we’ve been partners with FalconStor, our clients have had nothing but praise for the FalconStor VTL backup and deduplication solution. Many of them have been asking for an IBM-based appliance for some time,” said Ken Scott, director of storage sales for Cima Solutions Group. “The FalconStor VTL IBM Series appliance addresses the needs of small to medium-size businesses for which IBM’s ProtecTIER is much more than they need. With this new appliance, we can serve the IBM-based midmarket more effectively – shortening sales cycles and getting customers up and running faster.”

“ServIT has been selling FalconStor VTL software and appliances to meet the data protection needs of the midmarket with great success,” said Craig Jacquez, business development director for ServIT. “The FalconStor VTL solution helps our customers migrate to disk-based backup and recovery, dramatically reduce the backup window and optimize tape for archiving – or eliminate tape altogether. Delivered on the IBM hardware platform, the new system expands our product offering and enhances our ability to give IBM customers exactly what they need.”

“The partnership between FalconStor and IBM is a big win for both companies. IBM midmarket customers now have a comprehensive data protection solution specifically designed for them, and our channel partners gain access to a large new market,” said Gary Quinn, chief operating officer for FalconStor Software. “Enterprise-class data protection and optimization is not just for large enterprises. This joint offering provides the mid-size IBM data center with the same robust, reliable, award-winning technology that is enjoyed by so many of the largest IT operations in the world today.”

About the FalconStor VTL IBM Series appliance

The new FalconStor VTL IBM Series appliance consists of FalconStor VTL software integrated with IBM System x3650 M4 Express servers and IBM System Storage EXP2512 Express Storage enclosures, manufactured and quality-tested by Avnet Technology Solutions. The FalconStor VTL solution provides enterprise-class disk-based backup and deduplication to businesses of all sizes. It optimizes backup speed and performance, minimizes backup windows and makes data secure, available and easy to recover. FalconStor VTL solutions offer several deduplication methods so that customers can tailor to meet the needs of their business.

Pricing and availability

The FalconStor VTL IBM Series appliance and pricing will be available in North America at the end of August and will be rolled out to Europe and Asia-Pacific in Q1 2014.

About FalconStor Software

FalconStor Software, Inc. (Nasdaq:FALC) is a market leader in disk-based data protection. The company’s mission is to transform traditional backup and disaster recovery into next-generation service-oriented data protection. Built upon an award-winning platform, FalconStor solutions deliver disk-based backup, continuous data protection, WAN-optimized replication and disaster recovery automation. FalconStor solutions are available through a worldwide network of partners, including solution providers, top-tier strategic partners and major OEMs. Thousands of customers worldwide, from small businesses to Fortune 100 enterprises, entrust their data to FalconStor solutions. FalconStor maintains headquarters in Melville, N.Y., and offices throughout Europe and the Asia Pacific region. For more information, visit www.falconstor.com or call 1-866-NOW-FALC (866-669-3252).

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FalconStor and FalconStor Software are registered trademarks of FalconStor Software, Inc., in the U.S. and other countries. All other company and product names contained herein may be trademarks of their respective holders.

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CONTACT: Roman Kichorowsky
         FalconStor Software, Inc.
         631-773-4303
         roman.kichorowsky@falconstor.com

         Kathryn Ghita
         Metis Communications
         617-236-0500
         falconstor@metiscomm.com