Feeds

FalconStor shutters Australian office, merges Honkers and China ops

Cash-saving plan came from on high and puts the channel on the front line

Combat fraud and increase customer satisfaction

Troubled storage vendor FalconStor has closed its office in Australia and merged its Hong Kong and China operations.

The Reg has confirmed a report in CRN about the closures, which took place in October as a cost-cutting and effort-focussing measure.

The company is not abandoning the region altogether. Presences in Singapore, Malaysia, China, Japan and Taiwan continue and no jobs have been lost other than in Australia.

The company's head of AsiaPac Suresh Nair told The Reg the Australian office got the bullet because it had higher costs than other Asian markets and is also "mature". That's code for saturated with storage vendors that have already won business with a bank or telco that represents a big enough account to get a sales outpost to break-even point quickly.

Australia will now be served by partners, with Nair saying "We have streamlined our models to be more partner centric."

"Our partners are pretty much self sufficient dealing with implementation and support," he added. "As far as customers are concerned, there will be no gap."

Nair also sent The Reg the email sent to local customers. Here's a telling excerpt:

"In an ongoing effort to optimize our solution offerings, we have carefully evaluated our activities and realized the need to re-balance and adjust our business model. This includes the products we develop, the markets we address, and the geographies that we serve.

For the ANZ region, this means that FalconStor will not have an in-country presence in Australia with local resources but instead rely on channel partners. We will be focused on established and committed partners who can support the customer base in the Australia market. FalconStor APAC team will provide the necessary support infrastructure and enablement to ensure that these channel partners are well equipped to successfully serve you. While this may change our investment approach, I want to assure you that this does not change our focus and commitment to Australian customers. This was a timely and important decision made in light of executive changes, a new CEO, Gary Quinn, and investors that we have recently secured."

FalconStor's dedicated operations lasted around eighteen months in Australia. Four redundancies have resulted from its demise. ®

3 Big data security analytics techniques

More from The Register

next story
This time it's 'Personal': new Office 365 sub covers just two devices
Redmond also brings Office into Google's back yard
Kingston DataTraveler MicroDuo: Turn your phone into a 72GB beast
USB-usiness in the front, micro-USB party in the back
AMD's 'Seattle' 64-bit ARM server chips now sampling, set to launch in late 2014
But they won't appear in SeaMicro Fabric Compute Systems anytime soon
Brit boffins use TARDIS to re-route data flows through time and space
'Traffic Assignment and Retiming Dynamics with Inherent Stability' algo can save ISPs big bucks
Microsoft's Nadella: SQL Server 2014 means we're all about data
Adds new big data tools in quest for 'ambient intelligence'
prev story

Whitepapers

Mobile application security study
Download this report to see the alarming realities regarding the sheer number of applications vulnerable to attack, as well as the most common and easily addressable vulnerability errors.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.