Making Money Selling Totally Open BCDR Solutions in

Making Money Selling Totally Open BCDR Solutions in

Making Money Selling Totally Open BCDR Solutions in a Virtual Environment Wendy M. Petty Vice President, North America Sales Most Powerful Women of the Channel Channel Chief Top 100 Channel Executives FalconStor Software 2008 All Rights Reserved FalconStor at a Glance #5 in Forbes 2008 Americas 25 Fastest-Growing Tech Companies Leading provider of data protection software Over 4,000 enterprise and 30,000 SMB sites around the world Company operations Headquarters, R&D and Customer Support Melville , NY 23 in-country offices Global channel and 24x7 support Infrastructure Financially Sound/Strong Growth public company (NASDAQ: FALC)

PAGE 2 Data Provisioning, Protection and Recovery Solutions for VMware FalconStor Confidential for Internal and Partner Use Only US only FalconStor Software 2008 All Rights Reserved Certifications and Software Partnerships Certified for Windows Server 2003 and Windows Server 2008 Snapshot Agents certified with Microsoft Exchange and MS SQL Server VTL certified with Microsoft DPM Supporting Hyper-V via Technology Adoption Program Certified with VMware Infrastructure and Site Recovery Manager CDP certified as Virtual Appliance NSS certified as Virtual Appliance VTL/DeDup certified as Virtual Appliance

Certified with Citrix XenServer Qualified with Symantec OpenStorage Validated via Oracle Storage Compatibility Program PAGE 3 Data Provisioning, Protection and Recovery Solutions for VMware FalconStor Confidential for Internal and Partner Use Only US only FalconStor Software 2008 All Rights Reserved FalconStor Customers PAGE 4 Data Provisioning, Protection and Recovery Solutions for VMware FalconStor Confidential for Internal and Partner Use Only US only FalconStor Software 2008 All Rights Reserved Backup/Recovery needs are changingA LOT! By 2011, surviving enterprise backup/recovery products will have transformed into recovery management solutions that unite traditional backup, replication, snapshot and continuous data protection. Dave Russell, Gartner There are more than 4 million remote/branch offices in the U.S. Analysts estimate that 30-60% of corporate data is stored in remote offices. TheInfoPro Storage Wave 10 reports that nearly 25% of companies are planning backup redesign in 2008. According to IDC, data protection on Microsoft platforms is growing at 9% per year; nearly twice as fast as data protection of Unix environments.

Continuous Data Protection 21% CAGR ($189M-399M, 2006-10, IDC) Remote Office Protection 50% data growth annually (IDC) PAGE 5 Data Provisioning, Protection and Recovery Solutions for VMware FalconStor Confidential for Internal and Partner Use Only US only FalconStor Software 2008 All Rights Reserved WW Data Protection SW market is projected to grow from $2.7B in 2005 to $3.7B by 2010 (6.7% CAGR) $M Data Protection Opportunity, by Geography $4,000 $3,500 2005-10 CAGRs $3,000 13.2% AP $2,500 $2,000 7.5% EMEA

$1,500 $1,000 $500 4.5% AG $0 2005 2006 2007 AG 2008 EMEA AP 2009 2010 Source: IDC April 2007

While the overall data protection SW segment is maturing, pockets of growth are emerging: Continuous Data Protection - 21% CAGR ($189M-399M, 2006-10, IDC) Remote Office Protection - 50% data growth annually (IDC) Windows environments & applications - 9% CAGR ($1.1B-1.5B, 2006-10, GMV) PAGE 6 Data Provisioning, Protection and Recovery Solutions for VMware FalconStor Confidential for Internal and Partner Use Only US only FalconStor Software 2008 All Rights Reserved Top Storage Initiatives PAGE 7 Data Provisioning, Protection and Recovery Solutions for VMware FalconStor Confidential for Internal and Partner Use Only US only FalconStor Software 2008 All Rights Reserved Backup Challenges Faced by IT Biggest challenges in data protection processes Source: Enterprise Strategy Group, January 2008 PAGE 8 Data Provisioning, Protection and Recovery Solutions for VMware FalconStor Confidential for Internal and Partner Use Only US only FalconStor Software 2008 All Rights Reserved The problem, simply put

Backups hit the most vulnerable points with VMware: its narrow ability to handle excessive disk and network I/O... A backup load is one of the worst loads for a VMware server to accommodate. -- Ashley DCosta From Three VMware data backup and restore methods SearchDataBackup.com, 4/11/08 PAGE 9 Data Provisioning, Protection and Recovery Solutions for VMware FalconStor Confidential for Internal and Partner Use Only US only FalconStor Software 2008 All Rights Reserved FalconStor Solutions Network Storage Server (NSS) Storage virtualization, provisioning and management Continuous Data Protector (CDP) Disk-based data protection with instant data recovery Virtual Tape Library (VTL)/Data Deduplication Disk-based library for backup optimization Dramatically reducing data across the enterprise PAGE 10 Data Provisioning, Protection and Recovery Solutions for VMware

FalconStor Confidential for Internal and Partner Use Only US only FalconStor Software 2008 All Rights Reserved Solution Deployment Options All FalconStor solutions are available in three forms Virtual Appliance Built on top of VMware ESX Deploy via image to any certified server PAGE 11 Data Provisioning, Protection and Recovery Solutions for VMware FalconStor Confidential for Internal and Partner Use Only US only FalconStor Software 2008 All Rights Reserved Storage Appliance Server+storage in a single physical device Pre-configured amount of storage Gateway Appliance End user chooses

server hardware Connects to thirdparty storage devices VMware Data Protection Challenges FalconStor Software 2008 All Rights Reserved Major Backup Challenges in VMware Environment VMware Backup challenges Crashconsistent images Slow recovery process Over-utilization of resources Potential corruption,

data loss PAGE 13 Data Provisioning, Protection and Recovery Solutions for VMware FalconStor Confidential for Internal and Partner Use Only US only FalconStor Software 2008 All Rights Reserved Backups take too long Backups impact production FalconStor Virtualization with Built In Data Protection FalconStor Software 2008 All Rights Reserved Network Storage Server Network Storage Server (NSS) Intelligent Storage Virtualization True heterogeneous intelligent storage virtualization

Application-aware data protection WAN-optimized disaster recovery services protect operations and save on WAN costs Increased storage efficiency through Thin Provisioning of resources Enables VMware advanced features PAGE 15 Data Provisioning, Protection and Recovery Solutions for VMware FalconStor Confidential for Internal and Partner Use Only US only FalconStor Software 2008 All Rights Reserved TOTALLY Open Storage Virtualization Platform Exchange Oracle Windo ws SQL Linux VMwar e

Solaris Notes HP-UX DB2 AIX SAP Netwar e Any application Any storage protocol Any operating system Any disk array

Virtual Physical Data Existing SAN volumes via Storage Service Enabler PAGE 16 Data Provisioning, Protection and Recovery Solutions for VMware FalconStor Confidential for Internal and Partner Use Only US only FalconStor Software 2008 All Rights Reserved Virtualized SAN volumes Thin provisioned SAN volumes How Storage Virtualization Works Quickly create virtual volumes from across or within any physical disk resources Simple wizard interface Create Pools of Tiered

Storage Expand volumes on the fly Virtual disks Physical disks PAGE 17 Data Provisioning, Protection and Recovery Solutions for VMware FalconStor Confidential for Internal and Partner Use Only US only FalconStor Software 2008 All Rights Reserved Securely assign volumes to servers through NSS interface Flexible Virtualization Design 8 Years Proven Technology Thin Provisioning: Better Storage Utilization Create a virtual volume to match size of data provisioning request Allocate a smaller amount of

actual physical disk space Additional physical space allocated automatically as needed Reduces wasteful over provisioning of storage Saves disk space and power consumption A Green feature 800 GB Virtual 800 GB Physical Data 200 GB Thin provisioned SAN volume PAGE 18

Data Provisioning, Protection and Recovery Solutions for VMware FalconStor Confidential for Internal and Partner Use Only US only FalconStor Software 2008 All Rights Reserved Storage Pooling Focuses Resources Database Tier 1: Reserved for database production Tier 2: General production disk Assign management classes to physical disk resource PAGE 19 Data Provisioning, Protection and Recovery Solutions for VMware FalconStor Confidential for Internal and Partner Use Only US only FalconStor Software 2008 All Rights Reserved Email Files Archives

Tier 2: Reserved for Snapshots Tier 3: Virtualized JBOD Avoid allocation errors using clear disk classifications VMware Recovery with FalconStor Software FalconStor software provides a set of tools to enhance VMware data protection 100% transactional integrity of data for fast restores No impact backup WAN-optimized data replication to reduce bandwidth use by 80% or more PAGE 20 Data Provisioning, Protection and Recovery Solutions for VMware FalconStor Confidential for Internal and Partner Use Only US only FalconStor Software 2008 All Rights Reserved Application-centric Protection Why is application integration important? Because when you recover, you

want your data to look like this And not like this PAGE 21 Data Provisioning, Protection and Recovery Solutions for VMware FalconStor Confidential for Internal and Partner Use Only US only FalconStor Software 2008 All Rights Reserved Giving Names to Eggs Crash Consistent Data Transactionally Complete Data PAGE 22 Data Provisioning, Protection and Recovery Solutions for VMware FalconStor Confidential for Internal and Partner Use Only US only FalconStor Software 2008 All Rights Reserved Built in Data Protection Local and Remote Start new instance of application within two minutes

Snapshot image of virtual LUN can be used to start the same machine(s) on a separate ESX server Using an earlier instance of data can restore applications prior to corruption or data loss Replace restore with recovery Eliminate Mandatory Restores Snapshots PAGE 23 Data Provisioning, Protection and Recovery Solutions for VMware FalconStor Confidential for Internal and Partner Use Only US only FalconStor Software 2008 All Rights Reserved Totally Open Disaster Recovery FalconStor Software 2008 All Rights Reserved WAN Optimized Data Replication

Any-to-any data replication for disaster recovery Connect data center to DR site Connect ROBO to datacenter Protect SMB through replication to co-lo or hosted facility Includes built-in WAN optimization, data compression, and encryption Continuous or periodic modes PAGE 25 Data Provisioning, Protection and Recovery Solutions for VMware FalconStor Confidential for Internal and Partner Use Only US only FalconStor Software 2008 All Rights Reserved Virtual-to-Virtual DR Different physical server configuration Different physical storage configuration PAGE 26 Data Provisioning, Protection and Recovery Solutions for VMware FalconStor Confidential for Internal and Partner Use Only

US only FalconStor Software 2008 All Rights Reserved Physical-to-Virtual DR PAGE 27 Data Provisioning, Protection and Recovery Solutions for VMware FalconStor Confidential for Internal and Partner Use Only US only FalconStor Software 2008 All Rights Reserved FalconStor Storage Virtualization Device for VMware Your Differentiation as a Solution Provider FalconStor NSS Gateway certified by VMware as a Storage Virtualization Device The first software solution to be certified as a Storage Virtualization Device for VMware The first SVD to be integrated with VMware Site Recovery Manager (SRM) Allows any storage on VMware Hardware Compatibility List (HCL) to be used with SRM In effect, NSS extends SRM certification to connected disk Increases storage array flexibility for VMware Site Recovery Manager, brings support to existing SAN PAGE 28

Data Provisioning, Protection and Recovery Solutions for VMware FalconStor Confidential for Internal and Partner Use Only US only FalconStor Software 2008 All Rights Reserved NSS as Storage Virtualization Device Management data VMware Virtual Center with SRM VMware Virtual Center with SRM Data movement Disk Vendor A PAGE 29 Data Provisioning, Protection and Recovery Solutions for VMware FalconStor Confidential for Internal and Partner Use Only US only FalconStor Software 2008 All Rights Reserved Enables SRM for any storage on VMware HCL

Disk Vendor B The FalconStor SRM Advantage As A Partner Provide heterogeneous storage virtualization for VMware environments Enables VMware DR deployments on any HCL certified storage platforms Enable customers to use their current infrastructure to implement SRM and DR for VMware Provides cost effective DR strategy implementation Totally Open Disaster Recovery protects infrastructure investment and provides flexibility You become your customers Trusted Advisor PAGE 30 Data Provisioning, Protection and Recovery Solutions for VMware FalconStor Confidential for Internal and Partner Use Only US only FalconStor Software 2008 All Rights Reserved Supporting SMB and ROBO with the NSS Virtual Appliance FalconStor Software 2008 All Rights Reserved The Power of the Virtual SAN The FalconStor Network Storage Server Virtual

Appliance transforms internal disk storage into an iSCSI SAN No additional storage network investment needed Enables VMware advanced features Cost effective, highly available infrastructure for the SMB and ROBO PAGE 32 Data Provisioning, Protection and Recovery Solutions for VMware FalconStor Confidential for Internal and Partner Use Only US only FalconStor Software 2008 All Rights Reserved NSS VA with High Availability VMotion supported, online virtual machine migration Virtual Infrastructure HA supported without SAN storage To client Standby NSS VA Same size

virtual LUN Cross-over Gigabit connection VA S NS NSS Virtual Appliance 3k PAGE 33 Data Provisioning, Protection and Recovery Solutions for VMware FalconStor Confidential for Internal and Partner Use Only US only FalconStor Software 2008 All Rights Reserved ss o r C or r r i -M Active Access Point

Passive Access Point ROBO data consolidation Remote office Remote office WAN Highly available pair Remote office PAGE 34 Data Provisioning, Protection and Recovery Solutions for VMware FalconStor Confidential for Internal and Partner Use Only US only FalconStor Software 2008 All Rights Reserved Datacenter The Remote Site Data Protection Problem Managing tape at remote/branch

offices is among the biggest IT challenges IT staff may be few or none Non-IT personnel asked to rotate tapes, deal with backup failures, etc. Capital costs for replacing tape autoloaders every 3+ years Security also may be compromised by lost tapes PAGE 35 Data Provisioning, Protection and Recovery Solutions for VMware FalconStor Confidential for Internal and Partner Use Only US only FalconStor Software 2008 All Rights Reserved Eliminate Remote Tape Datacenter Mon, 6 a.m. Tue, 12 a.m. Mon,

12 p.m. Tue, 6 a.m. Mon, 6 p.m. Tue, 12 p.m. Create snapshotbased protection policies PAGE 36 Data Provisioning, Protection and Recovery Solutions for VMware FalconStor Confidential for Internal and Partner Use Only US only FalconStor Software 2008 All Rights Reserved Eliminates tape library and backup software/agents at remote sites Shrink RPO with multiple local data snapshots

Much better recovery than once-aday tape backup FalconStor/Microsoft Announcement FalconStor Software Supports Microsoft Windows Server 2008 Multi-Site Cluster Failover and Microsoft Hyper-V Virtual Servers FalconStor NSS enables automated, applicationconsistent failover in geographically dispersed clusters of both physical and Hyper-V virtual servers for better DR over the WAN PAGE 37 Data Provisioning, Protection and Recovery Solutions for VMware FalconStor Confidential for Internal and Partner Use Only US only FalconStor Software 2008 All Rights Reserved Multi-site Hyper-V Clustering Standby Virtual Machines Active Virtual Machines Multi-site cluster Node2 (Site1) Node1

(Site1) FC/iSCSI NSS (Site1) Data Provisioning, Protection and Recovery Solutions for VMware FalconStor Confidential for Internal and Partner Use Only US only FalconStor Software 2008 All Rights Reserved FC/iSCSI Continuous or periodic replication by virtual disks Automatic reverse replication with cluster resource migration PAGE 38 Node4 (Site2) Node3 (Site2)

NSS (Site2) R R R R R Why Partner With FalconStor FalconStor Solutions brings incremental revenue Value Added Services For every $1 of Software $7 dollars of HW New Professional Service Offerings based on #1 Challenge of How to protect a VMware envirnoment Expanding Data Protections Offerings with integrated solution FalconStor has the most complete set of VMware provisioning and protection products in the industry Built in Data Protection, local and remote Integration with Site Recovery Manager Support for SMB and ROBO with NSS VA Totally Open, leverage existing infrastructure, reduce costs PAGE 39 Data Provisioning, Protection and Recovery Solutions for VMware

FalconStor Confidential for Internal and Partner Use Only US only FalconStor Software 2008 All Rights Reserved How you leverage our differentiations Nobody can virtualize and replicate VMware unless your appliance is certified as a VMware SVD Nobody has a solution like NSS which can interact with 2008 microsoft stretch cluster and guarantees RTO = 0 Our Disksafe is the only host based solution to protect Windows 2008 boot c: data as well as all vm Nobody has one integrated platform for Storage Virtualization, Backup to Disk, VTL and DeDup Chosen solution by Tier 1 Storage Manufactures Channel Only Strategy Simple Pricing Model PAGE 40 Data Provisioning, Protection and Recovery Solutions for VMware FalconStor Confidential for Internal and Partner Use Only US only FalconStor Software 2008 All Rights Reserved FalconStor Helps You Sell

Lead Registration 30 Point Margins on all Registered Deals Sales Training Technical Training Product PPTs Whitepapers Webinars/Seminar in a Box Specifications and Sizing Guides Competitive Data Data Protection Experts in the Field Joint Sales Calls Lead Generation Proven Technology Multiple Integrated Products PAGE 41

Data Provisioning, Protection and Recovery Solutions for VMware FalconStor Confidential for Internal and Partner Use Only US only FalconStor Software 2008 All Rights Reserved How to Price Base Software includes all functionality Capacity being managed # of Applications protected NSS Base = 12k $1,000/TB $1,000 host Average Deal FALC SW = 30k-50k Average Partner Deal 75k-100k Solid Margins PAGE 42 Data Provisioning, Protection and Recovery Solutions for VMware FalconStor Confidential for Internal and Partner Use Only US only FalconStor Software 2008 All Rights Reserved

Partner Portal PAGE 43 Data Provisioning, Protection and Recovery Solutions for VMware FalconStor Confidential for Internal and Partner Use Only US only FalconStor Software 2008 All Rights Reserved End User Seminars PAGE 44 Data Provisioning, Protection and Recovery Solutions for VMware FalconStor Confidential for Internal and Partner Use Only US only FalconStor Software 2008 All Rights Reserved Webinars PAGE 45 Data Provisioning, Protection and Recovery Solutions for VMware FalconStor Confidential for Internal and Partner Use Only US only FalconStor Software 2008 All Rights Reserved Sponsored events PAGE 46 Data Provisioning, Protection and Recovery Solutions for VMware FalconStor Confidential for Internal and Partner Use Only

US only FalconStor Software 2008 All Rights Reserved End User NSS Case Study: Partner Success Story Maxim Investment Group About Maxim Investment Hedge Fund located NYC A leading mid-tier investment banking, securities, and investment firm The Challenge Did not have a current BCDR plan Needed a cost effective solution to implement in phases The Solution FalconStor NSS The Benefit Reduced recovery time from 38 hours to 15 minutes 80% reduction in bandwidth needed for DR

Rapid any-point-in-time recovery Application consistent recovery points Revenue to Partner 100k Created New Customer 25% solid margins Customer up for 4 Storage Awards PAGE 47 Data Provisioning, Protection and Recovery Solutions for VMware FalconStor Confidential for Internal and Partner Use Only US only FalconStor Software 2008 All Rights Reserved VP of North American Sales Wendy Petty 631-962-1168 Inside Sales Manager Terri Stanton

631-773-4305 Sales Operations Manager Jill Esposito 631-962-1147 Sales Associate NA Stephanie Lombardo 631-773-4360 CHANNEL SALES Director, Channel Sales Helen Cendrowski 516-639-6417 Channel Program Manager Adam Kamlet 716-870-4631 Distribution Sales Gretchen Gerlach, Director 214-663-4001 Don Mead, VP of Partner Alliances 631-398-8930 Business Development Jo McCausland, Director 484-356-7622 Channel Sales, DMR Jessica Barlow, Director 603-432-2724

Greg Doherty, DMR Sales Manager 310-295-4751 DMR SA Chris Costanzo 773-706-8879 WA WEST COAST CA, NV, AZ NM MT WY Margaret Shiner, TAM 415-254-6193 WA, OR AK Eric Olson, TAM 206-780-1771 ID, UT CO Joseph Angeletti, TAM 208-922-8016 Storage Architect TBD Inside Sales, West Coast Brandon Henke, ITAM 631-773-4333 Sept OR

N. CA ID CANADA Country Manager Chris Devlin 905-880-2002 SA Craig Snow 647-999-2774 Inside Sales, Canada Janice Barilla, ITAM 631-773-4370 ND MT WY MN SD NV

S. CA AZ CO IA KS OK NM CENTRAL REGIONAL SALES DIRECTOR Brandon Cate 214-566-2444 John Lucio, TAM 214-995-8133 Jon Lavallee, SA 832-731-8707 Project Manager Mike Reyero PAGE 48 817-683-2536 Data Provisioning, Protection and Recovery Solutions for VMware

Inside Sales, Central FalconStor Confidential for Internal and Partner Use Only 2008 US only FalconStor Software 2008 All Rights Reserved Brandon Henke, ITAM 631-773-4333 TX M WI NE UT MID-WEST WI, IL Bill OConnor, TAM 708-710-2835 Dan Synwolt, TAM 630-878-1453 Herb Quinde, TAM 773-871-6815 631-773-4370 MN, IA MO KS

Ken Evans, TAM 314-422-6633 Ken Wilborn, SA 312-446-5758 Inside Sales- Mid-West Janice Barilla, ITAM MI, IN, OH, KY WESTERN PA Ray Corridor, TAM 248-982-2062 Clayton Erickson, SA 330-760-9300 Inside Sales Sasha Kemnitzer, ITAM 631-773-4350 IL MO AR LA MS MI IN NY WV

KY TN AL PA OH GA VA NC SC FL FL, CARIBBEAN & LATIN AMERICA Regional Sales Director Terri Fritzel 727-667-3655 Jeff Maiuzzo, SA 585-943-5564 Inside Sales, Florida Janice Barilla 631-773-4370

DNJ MD DE E V N T H MA CT NORTHEAST VP of Enterprise Business Herb Siegel 631-796-9676 NY Metro George Nieves, CAM 631-767-0547 Jason Lin, TAM 718-300-2580 Raymond Tong, SA 212-273-9795 NY Metro Bill Swieca, TAM 212-444-2211 Brian Calabrese, SA 516-220-6818

NJ, Eastern PA Andy Nagler, TAM 201-602-0444 Duane Johnson, SA 917-578-6578 Christopher Deresz, CAM 908-216-8549 New England Greg Halunen, TAM 508-339-8587 Mike Mendola, SA 603-767-0723 Inside Sales, NE Sasha Kemnitzer, ITAM 631-773-4350 RI SOUTH-EAST AND MID-ATLANTIC & FEDERAL REGIONAL SALES DIRECTOR Curt Simmons 910-280-5103 NC, SC, GA, AL MS, TN Shawn Rutter, TAM 704-778-8601

Storage Architect TBD VA, MD, DE, DC, WV Chris Robertson, TAM 757-218-7860 FEDERAL Fred Vasofsky 703-727-6560 Storage Architect TBD Inside Sales Rich Burney, ITAM 631-773-4308 Contact us Thank You! Any Questions? Corporate Headquarters 2 Huntington Quadrangle Melville, NY 11747 USA Tel: +1 631.777.5188 Support: +1 631.777.3332 [email protected]

Asia Pacific Headquarters 6F-1, No.521, Sec. 1, Wunsin Rd. Taichung 40848 Taiwan Tel: +886-4-2259-1868 [email protected] European Headquarters 58 Rue Pottier 78150 Le Chesnay France Tel: +33.1.3923.9550 [email protected] IT as a Weapon: Advanced Data Protection and Recovery for VMware FalconStor Confidential for Internal and Partner Use Only FalconStor Software 2008 All Rights Reserved

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