FalconStor Software
FalconStor Software provides software-defined backup, archival, and disaster recovery solutions for hybrid cloud environments, with a focus on IBM Power and IBM i workloads. It serves Global 2000 enterprises and managed service providers in over 27 countries via a subscription-based model anchored by an IBM partnership.
- Company typePublic
- Founded2000
- HeadquartersAustin, United States
- Headcount251–500
- GTM typeB2B
- OfferingSoftware
What FalconStor Software does
FalconStor Software is a publicly traded (OTCQB: FALC) data protection software company founded in 2000 and headquartered in Austin, Texas. The company specializes in software-defined backup, archival, and disaster recovery for hybrid cloud environments, with a structural focus on IBM Power, IBM i, and AIX workloads that are typically under-served by mainstream backup vendors. Its core platform centers on StorSafe, a virtual tape library (VTL) backup-to-disk solution featuring patented deduplication technology (9 granted patents issued 2006-2019) that achieves up to 95% data reduction and runs on industry-standard hardware or cloud-based virtual servers. StorGuard provides high availability and disaster recovery through storage virtualization across heterogeneous disk arrays, StorSight offers centralized hybrid management, and the newly launched Habanero product extends the platform into a fully managed SaaS offsite data protection service built on IBM Cloud and integrated with IBM Cloud Object Storage.
The company serves Global 2000 enterprises and managed service providers across more than 27 countries, with named customers including MetLife, China Construction Bank, Telefonica, Express Scripts, and Adventist Health System. FalconStor is IBM's certified partner for PowerVS data protection and migration, with products featured in the IBM Cloud Catalog, and operates regional offices in Munich (EMEA HQ), Kuala Lumpur, Taichung, and Tokyo. The company has executed a multi-year transition from perpetual licensing to subscription-based recurring revenue, with approximately 75% of total revenue now recurring as of Q4 2025. Hybrid Cloud ARR grew 61% year-over-year in Q4 2025, with overall ARR up 54% in Q3 2025, and total Q4 2025 revenue reached $3.3 million (up 17% YoY). Distribution is primarily channel-led through MSPs, resellers, and the IBM ecosystem, supplemented by direct enterprise field sales for large deployments.
FalconStor Software firmographics
Firmographics- Name
- FalconStor Software
- Legal name
- FalconStor Software, Inc.
- Website
- https://falconstor.com
- Company type
- Public
- Founded year
- 2000
- Operating status
- Operating
- Headcount range
- 251–500 employees
- Short description
- FalconStor Software provides software-defined backup, archival, and disaster recovery solutions for hybrid cloud environments, with a focus on IBM Power and IBM i workloads. It serves Global 2000 enterprises and managed service providers in over 27 countries via a subscription-based model anchored by an IBM partnership.
- Ownership category
- akta.pro rank
Where FalconStor Software is headquartered
LocationHeadquarters
- HQ city
- Austin
- HQ country
- United States
- HQ region
- North America
Offices5 records
Markets served
FalconStor Software business model
Business model- GTM type
- B2B
- Offering type
- Software
- Cost components
- Personnel, Technology or R&D, Marketing or Sales, Operations, Infrastructure
Revenue model
- Subscription Recurring Revenue: FalconStor has completed a multi-year transition from perpetual license model to subscription-based recurring revenue. Approximately 75% of total revenue is now recurring. The company reported 61% year-over-year increase in Hybrid Cloud ARR run-rate in Q4 2025.
- Hybrid Cloud ARR: Annual recurring revenue from hybrid cloud services including Habanero, StorSafe cloud deployments, and cloud-native backup solutions. Growth of 61% YoY in Q4 2025 with 54% overall ARR growth in Q3 2025.
- Managed Service Provider Licensing: MSP partners utilize FalconStor software within their datacenters and at customer sites to power profitable as-a-service offerings. Monthly subscription licensing model for MSPs.
Pricing tiers
| Model | Billing | Price |
|---|---|---|
| Subscription | Monthly | Subscription-based pricing model with monthly licensing options |
Go-to-market motion2 records
Distribution channels5 records
Marketing channels6 records
FalconStor Software product offering
Product offeringCore offering
FalconStor develops and sells software-defined data protection, backup, archival, disaster recovery, and cloud migration solutions, anchored by its StorSafe virtual tape library (VTL) with patented deduplication, StorGuard high-availability and disaster recovery, and the Habanero SaaS for secure offsite protection of IBM Power environments. Approximately 75% of revenue is subscription-based recurring revenue, sold primarily through IBM, MSPs, and a global reseller channel to enterprises and managed service providers worldwide.
Product overview
FalconStor Software offers a unified data protection platform with multiple integrated products. The core offering centers on StorSafe (VTL with deduplication) for backup optimization and StorGuard for high availability and disaster recovery, both managed through the StorSight central console. The portfolio is complemented by Habanero (cloud-native SaaS for offsite protection) and FalconStor Thomas (AI advisor). The company has shifted from perpetual licensing to subscription-based recurring revenue, with approximately 75% of total revenue now recurring.
Differentiator
Problem solved
Functional benefit
Brands
- FalconStor Habanero™: SaaS offering for simplifying secure offsite data protection for IBM Power environments.
- StorSafe®
- StorGuard™
- StorSight™
- FalconStor Thomas™
Products and services
- StorSafe Software-defined virtual tape library (VTL) providing backup-to-disk target with patented deduplication (up to 95%), compression, and tape emulation. Runs on-premises, in the cloud, or in hybrid deployments and is certified by IBM for PowerVS data protection and migration. Targets enterprises and MSPs running IBM i, AIX, Linux, and Windows workloads.
- StorGuard
Quantifiable outcome
- Up to 95% data reduction of backup sets through deduplication
- +6 more outcomes
Companies that use FalconStor Software
Customer profileNamed customers15 records
Segments3 records
Ideal customer profiles2 records
FalconStor Software technology and API
TechnologyTechnology focussed Yes
API detail
- Has API
- No
- API docs
- API detail
Core technology
AI maturity
App detail
Integration6 records
Feature6 records
FalconStor Software partnerships and signals
Strategic signalPartnerships
Four partnerships are on record, tiered core, minor and strategic.
- IBMcoreFalconStor is IBM's certified partner for PowerVS data protection and migration. Products are featured in IBM Cloud Catalog. The partnership includes joint go-to-market activities, IBM Redbook contributions, and integration with IBM Cloud Object Storage, IBM Power Virtual Server, and PowerVS. The company achieved 15% growth in active worldwide IBM partners in 2025.
- Netrix GlobalminorNetrix Global collaborated with IBM to migrate an insurance company's workloads to IBM Power Virtual Server in Europe using FalconStor technology. The migration reduced costs by up to 40% and improved data backup and scalability.
- Global Technology Services CompanystrategicFalconStor signed a new strategic agreement with a global technology services company for IBM Power services delivery in 2025, contributing to the 15% year-over-year growth in active worldwide partners.
- IBM Cloud Object StoragecoreFalconStor Habanero is built on IBM Cloud and integrated with IBM Cloud Object Storage for secure offsite data protection and ransomware protection.
Scale indicators19 records
Recent moves6 records
Expansion highlights5 records
FalconStor Software competitors and assessment
Company assessmentDirect peers
- Rubrik: Cloud-native data management and backup SaaS platform. Competes with FalconStor in hybrid cloud data protection and cloud-native backup for enterprises, with a stronger emphasis on SaaS delivery similar to FalconStor's Habanero.
- Cohesity: Data management platform offering backup, disaster recovery, and ransomware protection across hybrid cloud. Directly comparable product portfolio and enterprise go-to-market motion to FalconStor.
- Veeam Software: Leading enterprise backup and data protection software vendor. FalconStor explicitly maintains 100% compatibility with Veeam for IBM i backup/restore, and both serve enterprise backup use cases with deduplication and hybrid cloud capabilities.
- Commvault: Enterprise data protection and information management platform. Directly comparable to FalconStor as an enterprise backup vendor offering deduplication, cloud integration, and ransomware protection for hybrid environments.
Broad incumbents
- Dell Technologies (Dell Data Protection): Broad incumbent offering integrated data protection appliances, software (e.g., NetWorker, Avamar), and PowerProtect portfolio. Competes with FalconStor in deduplicated backup and hybrid cloud for large enterprises.
- IBM Spectrum Protect: IBM's native enterprise backup product within the IBM ecosystem. Most directly comparable incumbent for IBM i / AIX / Power workloads where FalconStor's StorSafe and IBM BRMS integrations compete for the same seat.
- Veritas Technologies: Long-standing enterprise backup and data protection incumbent (formerly Symantec). Operates broadly across enterprise data protection with overlapping capabilities to FalconStor's StorSafe and StorGuard.
Emerging players
- Zerto (Hewlett Packard Enterprise): Disaster recovery and data protection solution focused on continuous data protection and cloud DR. Overlaps with FalconStor's StorGuard high-availability and DRaaS positioning.
- Druva: 100% SaaS-delivered data protection platform. Comparable to FalconStor Habanero as a cloud-native backup and DR offering, with a subscription-only model aligned to FalconStor's recurring-revenue pivot.
- Actifio (Google Cloud): Copy data management and cloud-based backup platform now part of Google Cloud. Overlaps with FalconStor's hybrid cloud data protection use cases for enterprise workloads.
Market position
Strengths5 records
Weaknesses5 records
Competitive moat5 records
Key risks6 records
Key highlights7 records
Customer concentration
FalconStor Software social profiles
Digital presenceFalconStor Software financial estimates
Financial estimateRevenue estimate
Valuation estimate
FalconStor Software leadership team
Management profileNumber of profiles
Profiles3 records
FalconStor Software funding detail
Funding detailFunding overview
Funding rounds2 records
Investors2 records
Funding detail is available on the Subscription and Enterprise plan.Contact sales →
FalconStor Software M&A and investment
M&A and investmentM&A2 records
Investments
M&A and investment is available on the Subscription and Enterprise plan.Contact sales →
Frequently asked questions about FalconStor Software
What does FalconStor Software do?
FalconStor develops and sells software-defined data protection, backup, archival, disaster recovery, and cloud migration solutions, anchored by its StorSafe virtual tape library (VTL) with patented deduplication, StorGuard high-availability and disaster recovery, and the Habanero SaaS for secure offsite protection of IBM Power environments. Approximately 75% of revenue is subscription-based recurring revenue, sold primarily through IBM, MSPs, and a global reseller channel to enterprises and managed service providers worldwide.
Is FalconStor Software a public or private company?
FalconStor Software is a public company. It is classified as public and is currently operating.
When was FalconStor Software founded?
FalconStor Software was founded in 2000. It employs 251 to 500 people.
Where is FalconStor Software based?
FalconStor Software is headquartered in Austin, United States, in the North America region.
How does FalconStor Software make money?
Three revenue lines are on record. Subscription Recurring Revenue is the primary driver. The others are hybrid Cloud ARR and managed Service Provider Licensing.
Who are FalconStor Software's main competitors?
Direct peers on record are Rubrik, Cohesity, Veeam Software and Commvault. Broad incumbents are Dell Technologies (Dell Data Protection), IBM Spectrum Protect and Veritas Technologies. Emerging players are Zerto (Hewlett Packard Enterprise), Druva and Actifio (Google Cloud).
Does FalconStor Software have an API?
No public API is recorded for FalconStor Software.