On Monday, June 1st, 2009, FalconStor Software announced some pretty compelling data reduction numbers. Depending on whose numbers you believe FalconStor’s single-node performance is 20-30% faster than Data Domain’s single node performance. What’s more, in its reference environment discussed here on Wikibon and in a press release here FalconStor’s Single Instance Repository (SIR) was able to achieve a 40:1 data reduction ratio — 20:1 using SHA-1 deduplication at a block level and then 2:1 using hardware compression cards from HiFN. FalconStor also has file level data reduction using pretty much the same code.
So, it is not obvious why EMC and NetApp should be in a bidding war for Data Domain. Indeed, since SUN, EMC, IBM and Spectra Logic to name just a few all OEM FalconStor technology, EMC could deliver another hay-maker punch to its competitors just by buying FalconStor. FalconStor is smaller than Data Domain with $80M in revenues for 2008 versus $274M for DDUP, but FalconStor has many more products, technologies and a much longer track record.