Feeds

FalconStor may have morale problem

Staff turnover normal business events says management

Application security programs and practises

The Reg' has been told by reputable people familiar with FalconStor that staff are leaving and both morale and confidence in senior management is very low. FalconStor says nothing untoward is happening at all and that it's successfully refocussing the company towards increased sales of branded products through the channel.

FalconStor's results for its most recent quarter, which ended on June30, showed revenues of $20.3m, an 18 per cent rise over the previous quarter but down 17 per cent year-on-year. The net loss was $3.4m, which was better than the previous quarter's $5.5m loss.

A person familiar with FalconStor's situation in the USA paints a picture of morale being very low, confidence in senior management equally low, and lots of people, including top talent in the field, looking to go to other jobs.

A source said it appears there has been a restructuring in marketing, to do with the increased focus on branded sales through the channel and that may have precipitated some staff changes. We understand that a senior storage architect has resigned in the Colorado area, that a sales engineer has left the Denver office to join EMC, and Greg Doherty, a Florida-based account manager left to join Fusion-io.

FalconStor, which supplies storage virtualisation and data protection software, has been having some successes recently. HDS signed a reseller deal for its virtual tape library and deduplication software in June. Fadi Albatal, VP and senior director of marketing for the company, says that channel sales are up 20 per cent quarter on quarter, and there has been a 51 per cent rise in non-OEM branded product revenue since the second quarter of 2009. FalconStor has also increased its Asia-Pacific region sales by 20 per cent through working with Dell.

Albatal said: "We're expanding the channel partner community and have recruited 28 VMware-specific resellers so far this year and want 12 more by the end of the year."

FalconStor has just recruited Matt Wulkan as channel marketing director. Albatal said he "couldn't comment on file staff leaving. It's just the normal course of business" with "sales people being most exposed to the cycle. I wouldn't say there's anything extraordinary happening. We do have sales openings and we're looking for high-value sales people in the field." ®

Bridging the IT gap between rising business demands and ageing tools

More from The Register

next story
Apple fanbois SCREAM as update BRICKS their Macbook Airs
Ragegasm spills over as firmware upgrade kills machines
Auntie remains MYSTIFIED by that weekend BBC iPlayer and website outage
Still doing 'forensics' on the caching layer – Beeb digi wonk
Attack of the clones: Oracle's latest Red Hat Linux lookalike arrives
Oracle's Linux boss says Larry's Linux isn't just for Oracle apps anymore
THUD! WD plonks down SIX TERABYTE 'consumer NAS' fatboy
Now that's a LOT of porn or pirated movies. Or, you know, other consumer stuff
EU's top data cops to meet Google, Microsoft et al over 'right to be forgotten'
Plan to hammer out 'coherent' guidelines. Good luck chaps!
US judge: YES, cops or feds so can slurp an ENTIRE Gmail account
Crooks don't have folders labelled 'drug records', opines NY beak
Manic malware Mayhem spreads through Linux, FreeBSD web servers
And how Google could cripple infection rate in a second
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.