FalconStor Teams with Avnet Embedded to Create Global Supply Chain

 June 3, 2013- FalconStor Software, Inc. (NASDAQ: FALC), a market leader in disk-based data protection, today announced an agreement with Avnet Embedded, a division of Avnet Electronics Marketing Americas, a business region of Avnet, Inc. (NYSE: AVT), for worldwide integration and order fulfillment of FalconStor solutions. In moving to a global supply chain operation with Avnet Embedded, FalconStor enhances its ability to scale quickly and efficiently to meet customers' demand for its data protection solutions.

Avnet Embedded will support FalconStor's new partnership with IBM to bundle FalconStor® Virtual Tape Library (VTL) with deduplication on IBM servers and storage to address the IBM midmarket customers, starting in North America (see related announcement, “IBM and FalconStor Team Up to Create Backup Appliance for the Midmarket”). In addition, Avnet Embedded will take over the integration and testing of FalconStor's product suite – including FalconStor® Network Storage Server (NSS), FalconStor® Continuous Data Protector (CDP), and FalconStor VTL – on Dell appliances worldwide.

“This broad relationship with Avnet allows us to better serve our customers in every region by allowing us to expand our offering of appliance platforms and to deliver products quickly anywhere in the world,” said Gary Quinn, chief operating officer at FalconStor Software. “Avnet has the systems integration and distribution services that will help us ramp up production to meet the increasing demand for comprehensive data protection solutions that make business-critical IT services continuously available.”

Avnet, one of the largest global distributors of electronic components, computer products and embedded technology, will fulfill orders for FalconStor solutions from its worldwide integration centers to service the Americas, Europe and Asia-Pacific. This will reduce shipping costs while providing better delivery service to FalconStor's customers, allowing them to get up and running faster. Avnet Embedded's integration expertise and relationships with multiple technology suppliers, such as Dell and IBM, will enable FalconStor to deliver complete solutions on industry leading platforms to customers around the world at lower costs while increasing production volume.

“By integrating FalconStor products with an array of server and storage systems from top tier vendors, we offer FalconStor customers their choice of hardware platforms for the best performing data protection and storage virtualization appliances for any data center on the planet,” said Chuck Kostalnick, senior vice president, Avnet Embedded. “Business continuity and disaster recovery solutions are a priority for companies across the globe, and our established integration centers allow us to scale immediately to meet the needs of FalconStor channel partners and customers.”

Through consolidating its global supply chain with Avnet Embedded, FalconStor captures efficiencies and operational savings in cost of goods, supply chain management and order fulfillment. The partnership with Avnet Embedded signals FalconStor's ability to expand the production volume and market penetration of its complete data protection solutions.