FalconStor Software
Corporate brand
UnclaimedA U.S. enterprise software company focused on data protection, backup, recovery, and storage management.
Last updated November 4, 2026
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Overview
FalconStor Software is a U.S. data-management software company whose products are designed to help enterprises protect, move, recover, and govern digital information across physical, virtual, and cloud-oriented environments. The company was founded in 2000 in New York by ReiJane Huai and Wayne Lam, both of whom had previously worked at Computer Associates. Its business developed around storage virtualization, backup infrastructure, continuous data protection, disaster recovery, and software-defined storage management rather than around consumer software or hardware manufacturing. FalconStor became known in the enterprise-storage market for technologies that could abstract storage resources and provide organizations with centralized control over backup and recovery operations. Its portfolio included virtual tape library products, continuous data protection software, disaster-recovery tools, deduplication capabilities, and broader storage-management platforms. These products were aimed at organizations seeking to reduce reliance on physical tape, improve recovery times, consolidate heterogeneous storage systems, and maintain business continuity after system failures or other disruptions. The company expanded its technology and commercial relationships during the 2000s. In 2007, it entered a joint venture with the Chinese Academy of Sciences relating to the Blue Whale file system. The venture, Tianjin Zhongke Blue Whale Information Technologies Company, was based in Tianjin, China. FalconStor also worked with Nexsan on a co-branded deduplication offering in 2009. During this period, the company received recognition in the Forbes 2008 ranking of fast-growing technology companies and was later included by CRN in a 2011 list of storage vendors that channel partners should know. FalconStor experienced a major governance and legal crisis beginning in 2010. Chief executive and co-founder ReiJane Huai resigned in September 2010 amid allegations concerning improper payments. In 2012, the company reached a federal settlement after acknowledging that employees had provided more than $300,000 in improper benefits, including restricted stock and golf memberships, to executives at JPMorgan Chase in connection with business contracts. The settlement included a payment of $5.8 million and allegations that corporate books and records had been falsified in relation to the conduct. The episode materially affected the company’s reputation and leadership continuity. The company continued to reposition its portfolio around software-defined and subscription-oriented data protection. FreeStor was rebranded as the Data Mastery platform in 2019, reflecting a broader emphasis on managing data across storage environments rather than presenting the offering solely as a storage virtualization product. In 2020, FalconStor introduced StorSafe, described as an enterprise-grade permanent data-storage container intended to work with existing recovery applications and archival processes. That same year, it partnered with Hitachi Content Platform to offer an end-to-end data-management and backup combination. FalconStor’s corporate status also changed during the late 2010s. The company was delisted from the Nasdaq Capital Market on September 25, 2017, after which its shares traded on the OTCQB Venture Market. In 2018, the company moved its headquarters from the New York area to Austin, Texas, and appointed Brad Wolfe as chief financial officer. Todd Brooks became chief executive officer in 2017 after holding operating roles at software businesses associated with ESW Capital, including Aurea Software and Trilogy. The FalconStor brand today represents a specialist enterprise software provider serving organizations that need backup modernization, disaster recovery, storage consolidation, data mobility, and long-term data retention. Its market position is that of a focused infrastructure-software vendor rather than a broad cloud-platform company. The company’s history combines early innovation in storage virtualization and data protection with international partnerships, product rebranding, leadership changes, public-market challenges, and a significant compliance scandal.
History
FalconStor Software was established in 2000 in New York by ReiJane Huai and Wayne Lam, former Computer Associates employees. The company entered the market as an enterprise storage-software specialist, concentrating on technologies that could virtualize storage resources and improve backup, recovery, and disaster-recovery operations. Rather than manufacturing storage hardware, FalconStor developed software that could operate across heterogeneous infrastructure and help customers centralize data protection. During the 2000s, FalconStor expanded its international and technology relationships. In 2007, it created a joint venture with the Chinese Academy of Sciences for work associated with the Blue Whale file system. The venture was named Tianjin Zhongke Blue Whale Information Technologies Company and was located in Tianjin, China. FalconStor also collaborated with Nexsan in 2009 on the co-branded DeDupe SG deduplication product. The company’s growth attracted industry attention: it was ranked fifth in Forbes’ 2008 list of 25 fast-growing technology companies, and CRN included it in a 2011 list of storage vendors that channel partners should know. FalconStor’s principal product areas included virtual tape libraries, continuous data protection, recovery orchestration, storage virtualization, and deduplication. Its VTL products sought to replace or supplement physical tape systems with disk-based virtual tape environments. FalconStor CDP addressed continuous or near-continuous protection needs, while RecoverTrac focused on disaster-recovery planning and execution. Together, these products positioned the company within the enterprise backup and business-continuity market. The company entered a serious governance crisis in 2010. Huai resigned as chief executive in September of that year amid allegations involving improper payments. In 2012, FalconStor agreed to a federal settlement after admitting that employees had provided more than $300,000 in improper benefits, including restricted stock and golf memberships, to JPMorgan Chase executives in exchange for contracts. The company also faced allegations that its books and records had been falsified in connection with the payments. The settlement required a $5.8 million payment. Huai later died by suicide in September 2011 while facing the federal case. FalconStor continued operating and evolving its portfolio after the compliance episode. In 2017, Todd Brooks was appointed chief executive officer. That year, the company was delisted from the Nasdaq Capital Market on September 25; its shares subsequently traded on the OTCQB Venture Market. In 2018, FalconStor moved its headquarters to Austin, Texas, and appointed Brad Wolfe, formerly associated with Asure Software, as chief financial officer. Product positioning shifted toward broader data management. In 2019, the company relaunched or rebranded FreeStor as the Data Mastery platform, signaling an effort to present its capabilities as a more comprehensive approach to managing data across storage environments. In May 2020, FalconStor announced StorSafe, an enterprise-oriented permanent data-storage container intended to work with existing recovery applications and archive processes. In June 2020, it announced a partnership involving Hitachi Content Platform to provide integrated data-management and backup solutions. FalconStor’s historical identity is therefore tied to enterprise storage virtualization and backup innovation, but also to corporate restructuring, public-market difficulties, and compliance challenges. Its brand remains associated with specialized software for backup, disaster recovery, storage management, data mobility, and retention.
- 2020
StorSafe announced
[1]The company announced StorSafe, a permanent data-storage container for enterprise recovery and archival workflows.
- 2019
Data Mastery introduced
[1]FalconStor launched Data Mastery as a rebranded form of the FreeStor product.
- 2018
Headquarters moved to Austin
[1]FalconStor relocated its headquarters to Austin, Texas, and appointed Brad Wolfe as CFO.
- 2017
Nasdaq delisting
[1]FalconStor was delisted from the Nasdaq Capital Market and moved to OTCQB trading.
- 2012
Federal improper-payment settlement
[1]FalconStor agreed to a $5.8 million settlement after acknowledging improper benefits provided to JPMorgan Chase executives and related books-and-records issues.
- 2010
Chief executive resignation
[1]Co-founder ReiJane Huai resigned as chief executive amid allegations concerning improper payments.
- 2009
DeDupe SG collaboration with Nexsan
[1]FalconStor and Nexsan created a co-branded deduplication offering known as DeDupe SG.
- 2008
Recognized among fast-growing technology companies
[1]FalconStor was ranked fifth in Forbes’ list of 25 fastest-growing technology companies.
- 2007
Blue Whale file-system joint venture
[1]FalconStor began a joint venture with the Chinese Academy of Sciences, establishing Tianjin Zhongke Blue Whale Information Technologies Company in Tianjin.
- 2000
Company founded in New York
[1]ReiJane Huai and Wayne Lam, both Computer Associates veterans, co-founded FalconStor Software.
Products and positioning
A specialist enterprise infrastructure-software provider for data protection, backup modernization, disaster recovery, storage management, and long-term data retention.
Virtual tape library and backup infrastructure
FalconStor VTL
FalconStor VTL is the company’s virtual tape library product family. It uses disk-based storage and software abstraction to emulate tape-library workflows, helping organizations modernize backup environments, reduce dependence on physical tape, and integrate backup data with enterprise storage infrastructure. The offering is associated with centralized backup management, faster access to backup images, and support for recovery operations across heterogeneous environments.
Continuous data protection
FalconStor CDP
FalconStor CDP is a continuous-data-protection offering intended to capture and preserve changes to data over time. Its role within the portfolio is to provide more frequent recovery points than conventional periodic backups, supporting recovery from data loss, system failure, or operational disruption. It is positioned for organizations with demanding recovery-time and recovery-point requirements.
Disaster recovery
FalconStor RecoverTrac
RecoverTrac is FalconStor’s disaster-recovery software offering. It is designed to help organizations coordinate recovery procedures, replicate or restore protected workloads, and manage business-continuity operations after infrastructure failures. The product represents the company’s focus on recovery orchestration in addition to backup storage and protection.
Storage virtualization and data management
FreeStor
FreeStor was a FalconStor software platform for storage virtualization and broader data management. It was designed to provide a software layer across storage resources and support data movement, protection, and management across different infrastructure environments. In 2019, FalconStor repositioned the product under the Data Mastery name.
Data management platform · 2019
Data Mastery
Data Mastery is the 2019 rebranding of FalconStor’s FreeStor platform. The name reflects a broader product narrative centered on controlling and managing data across storage environments. Its intended scope includes data protection, storage-resource management, mobility, and operational recovery rather than a single backup appliance or isolated storage function.
Permanent data storage and retention · 2020
StorSafe
StorSafe is an enterprise-class permanent data-storage container announced in 2020. FalconStor described it as a capability that could work with existing recovery applications and archival processes, addressing long-term retention and the preservation of data beyond ordinary backup cycles. The offering extended the company’s data-protection positioning toward durable storage and archive-oriented use cases.
Controversies
2012
Federal bribery and books-and-records settlement
FalconStor agreed to pay $5.8 million in a federal investigation settlement after admitting that employees provided more than $300,000 in improper benefits, including restricted stock shares and golf memberships, to JPMorgan Chase executives in exchange for contracts. The company was also charged with falsifying corporate books and records associated with the payments.
2010
Improper-payment allegations and executive resignation
Co-founder and chief executive ReiJane Huai resigned in September 2010 amid allegations concerning improper payments. The episode preceded a federal case and created a major leadership and governance crisis for FalconStor.
Brand decisions
2020
Introduce StorSafeProduct launchBackground
Long-term retention and archive workflows require durable data containers that can operate alongside existing recovery systems.
Action taken
FalconStor announced StorSafe as an enterprise permanent data-storage container compatible with existing recovery applications and archival processes.
Aftermath
StorSafe broadened FalconStor’s product narrative from backup and recovery toward permanent retention and archive-oriented data management.
2020
Partner with Hitachi Content PlatformStrategyBackground
FalconStor sought to combine its data-management and backup software with established content-storage infrastructure.
Action taken
The company partnered with Hitachi Content Platform to provide end-to-end data-management and backup solutions.
Aftermath
The partnership extended FalconStor’s interoperability and enterprise-solution positioning.
2019
Rebrand FreeStor as Data MasteryGeneration changeBackground
FalconStor sought to present its storage-virtualization capabilities as part of a broader data-management proposition.
Action taken
The company launched the Data Mastery platform as a rebranded version of FreeStor.
Aftermath
The rebranding shifted product messaging toward comprehensive data management and control across storage environments.
2018
Relocate headquarters to AustinStrategyBackground
FalconStor undertook a corporate transition following its Nasdaq delisting and broader leadership changes.
Action taken
The company moved its headquarters to Austin, Texas, and appointed Brad Wolfe as CFO.
Aftermath
Austin became the company’s reported headquarters and the base for its subsequent operating period.
2017
Continue as an OTCQB-traded company after Nasdaq delistingStrategyBackground
FalconStor was delisted from the Nasdaq Capital Market on September 25, 2017.
Action taken
The company’s stock continued to trade on the OTCQB Venture Market.
Aftermath
The delisting changed FalconStor’s public-market status and reduced its exposure to a major U.S. exchange.
2009
Co-branded DeDupe SG with NexsanProduct launchBackground
Enterprise customers were seeking ways to reduce backup-storage requirements through deduplication.
Action taken
FalconStor partnered with Nexsan to create the co-branded DeDupe SG offering.
Aftermath
The collaboration expanded FalconStor’s presence in deduplication and backup-storage solutions.
2007
Enter a Blue Whale file-system joint ventureStrategyBackground
FalconStor sought to extend its technology relationships and international presence through cooperation with the Chinese Academy of Sciences.
Action taken
The company established Tianjin Zhongke Blue Whale Information Technologies Company in Tianjin with the Chinese Academy of Sciences.
Aftermath
The venture became part of FalconStor’s international and technology-development history, although later business results are not specified in the available reference material.
Recent events
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