Synology

Lore & Background

Synology was founded in 2000 after Liao and Wong left Microsoft. Liao had been a development manager in the Microsoft Exchange Server Group, while Wong was a Sales Director for Microsoft in Taiwan. Wong felt Taiwanese OEMs were doing most of the work for foreign brands, and convinced Liao to found Synology, naming the company by taking one character from each of their names. Liao brought Microsoft's software development process to Taiwan, requiring all code to be reviewed by two other engineers. They wrote a new operating system called Filer OS based on Berkeley Software Distribution (BSD), initially licensed to Fastora NAS hardware. Three years later, they shifted to hardware design and production due to inconsistent quality control from partners, releasing the DiskStation DS-101 in 2004. Initially targeting power users and small to medium-sized businesses, Synology expanded its market share in the United States by sending gift baskets with custom-printed chocolates to popular review outlets.

In 2007, Wong implemented a 'rotating CEO system' where senior employees served terms as CEO; Wong returned as CEO in 2019. Liao serves as President of Synology America Corp., and Wong serves as Chairman of Synology Inc. By 2014, revenue exceeded NT$10 billion. Synology expanded beyond storage by introducing a cloud service in 2017, initially using three data centers in Frankfurt, Germany. In 2018, Wong stated Synology's profits were 'in the same neighborhood as ASUS,' approximately NT$4.2 billion that year. The company consolidated its offices in 2019, moving to the Far Eastern Telecom Park in Banqiao District.

Synology uses an alphanumeric naming convention for products: two alphabetical characters followed by a three- or four-digit number, with optional suffix. For example, the DS211+ is a DiskStation with two drive bays, released in 2011, with enhanced performance. In 2025, Synology began locking its NAS devices to only accept Synology-branded hard drives, but reversed this with DSM 7.3 in October 2025, allowing third-party hard drives again, though M.2 drives remain locked to Synology's own brand.

Reader's Guide

Synology's significance lies in its long-standing presence in the NAS market, particularly for small businesses and home users, as noted by Wirecutter in 2018. The company's DiskStation Manager (DSM) operating system, a Linux-based platform, supports hundreds of third-party applications and allows command line access via SSH or Telnet, fostering a developer ecosystem. Synology's shift from software-only to integrated hardware and software in 2004 addressed quality control issues and established its reputation. The company's 2025 decision to lock NAS devices to Synology-branded hard drives, followed by a partial reversal, marked a notable departure from its tradition of open drive compatibility. Synology also expanded into networking products, including wireless routers and mesh systems managed by Synology Router Manager (SRM). The company's history of vulnerabilities, such as the 2014 'Synolocker' ransomware targeting older DSM versions, highlights ongoing security challenges. Overall, Synology's legacy is defined by its evolution from a small startup to a global NAS provider, its software ecosystem, and its occasional controversial hardware policies.

Did You Know?

• Synology was founded in 2000 by two former Microsoft employees, Liao and Wong, who named the company by taking one character from each of their names.
• Synology's first complete NAS solution, the DiskStation DS-101, was released in 2004.
• In 2014, ransomware called 'Synolocker' targeted Synology NAS devices running DSM versions 4.0, 4.2, and 4.3.