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FalconStor Launches China Venture: Page 3 of 4

Specifically, FalconStor will tie its de-duplication, snapshot, replication, and virtualization technology to the Academy's clustered file system, putting the combined technology up against offerings from the likes of Exagrid.

FalconStor will have the rights not only to incorporate the clustered file system into its products, but to sell those products outside of China.

"If you look at the guys that have done well with de-duplication, it's because they have built the de-duplication on top of a clustered file system," says Freed. "Exagrid is using a clustered file system and Quantum is putting their de-dupe on top of a clustered file system."

On last night's conference call, FalconStor officials also talked a bit about VTL partnerships.

FalconStor has already clinched OEM deals with Acer and Chinese server giant Langchao for the VTLs, according to Wu. "We're expecting the midrange edition of our VTL with embedded de-duplication to be well-received by our partners around the world," added Huai.