IDG Research and FalconStor Software Find Companies Inadequately Prepared for IT Disasters Heading into 2013

  IDG Research and FalconStor Software Find Companies Inadequately Prepared
  for IT Disasters Heading into 2013

  Market poll discusses how anticipated shift from tape backup to automated,
 data replication technologies will eliminate downtime, loss of productivity

Business Wire

MELVILLE, N.Y. -- December 18, 2012

FalconStor Software, Inc. (NASDAQ: FALC), a market leader in disk-based data
protection, today announced the results of its independent “Disaster Recovery
Trends and Metrics” quick poll, which was conducted in partnership with IDG
Research Services. Featuring responses from 189 IT managers and executives,
the survey found that 42 percent are still not adequately armed with modern
disaster recovery solutions, even though they experienced at least one
instance of data loss in the past year.

Many of those surveyed continue to rely on ineffective manual processes and
tape backup systems; however, most respondents anticipate an evolutionary move
toward highly available, automated systems with data replication within the
next 18 months.

“In conducting this survey, we found it surprising that participating
companies experienced an average of 34 instances of data loss and IT outages;
even with this level of system failure, disaster recovery testing was not a
priority for these businesses,” said Janet King, general manager and vice
president at IDG Research Services. “This poll illustrates why companies must
remain vigilant on the topic of data protection by implementing automated
solutions that eliminate unexpected losses.”

The survey also found that tape backup was the most pervasive data backup
solution, with 23 percent of large enterprises, 48 percent of medium
enterprises and 27 percent of small businesses relying on this technology.
Additional survey findings include:

  *Sixty-five percent of respondents reported using manual disaster recovery
    processes; however, 83 percent reported that they believe automated
    disaster recovery and data replication technologies will be more widely
    used in the next 18 months.
  *Seventy-two percent of overall IT leaders stated that their disaster
    recovery plans are only tested an average of once a year, with 82 percent
    of large enterprises completing disaster recovery testing one or more
    times yearly as compared to 75 percent of medium enterprises and 63
    percent of small businesses.
  *Forty-two percent of respondents said their organizations experience at
    least one data outage per year, with an average of 34 instances across
    enterprises of all sizes; of these companies, the majority of respondents
    stated that downtime in excess of four hours for any outage is
  *Fifty-three percent of organizations responded that an outage of more than
    four hours is unacceptable, with the most common consequence being loss of
    productivity as reported by 67 percent, followed by 27 percent reporting
    harm to reputation, financial loss and loss of irreplaceable data.

Driven by decreased IT budgets and the conventional perception of disaster
recovery as a manual, time-intensive process, IT has not quickly adopted new
automated solutions. Data protection and disaster recovery technology is an
insurance policy for today’s data centers, which must be able to operate 24/7
without IT downtime. In part, the delay in adopting these automated
service-oriented recovery technologies lies in the education of the market and
the executives who must approve these new systems.

“As demonstrated recently by Hurricane Sandy’s impact on the Northeast,
businesses must have a plan in place to quickly restore both data and IT
services to curb the cost of downtime. With the increased adoption of
virtualization and the extraordinary amount of time required for tape backup,
companies are turning to disk-based solutions,” said Ralph Wynn, senior
product marketing manager at FalconStor. “Through the use of highly available
automation technologies and consistent disaster recovery testing, firms can be
assured that they are prepared to handle any issue that may arise.”

FalconStor’s RecoverTrac™ automated disaster recovery solution was chosen as
the SearchServerVirtualization “Best of VMworld 2012” award gold winner in the
Business Continuity and Data Protection category for its ability to perform
service-oriented recovery in mixed physical/virtual environments and for
enabling continuous data protection. By automating the complex recovery
process, RecoverTrac technology eliminates the costly, time-consuming task of
manually bringing IT services back on line and provides IT managers with the
ability to resume services quickly.

Study demographics

The online poll conducted by IDG Research collected information from 189 IT
leaders across all market segments that were using or planning to use disaster
recovery and data protection technologies. Thirty-two percent of these
individuals worked at firms with more than 5,000 employees; 23 percent of
these individuals had between 1,001 and 5,000 employees; 37 percent of these
individuals had between 101 and 1,000 employees; and eight percent had between
50 and 100 employees at the time of the survey.

Additional resources:

  *InfoWorld QuickPulse disaster recovery report and survey data
  *Disaster recovery automation white paper

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 or call 1-866-NOW-FALC (866-669-3252).

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FalconStor, FalconStor Software and RecoverTrac are either trademarks or
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.

Links to websites or pages controlled by parties other than FalconStor are
provided for the reader’s convenience and information only. FalconStor does
not incorporate into this release the information found at those links nor
does FalconStor represent or warrant that any information found at those links
is complete or accurate. Use of information obtained by following these links
is at the reader’s own risk.


FalconStor Software, Inc.
Roman Kichorowsky, 631-773-4303
Metis Communications
Kathryn Ghita, 617-236-0500
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