Data Storage Corporation Expands Contract with a Leading Business Process Solutions Provider
Data Storage (Nasdaq: DTST) announced the expansion of its contract with a leading global business process solutions provider. The six-figure deal, secured through its CloudFirst subsidiary, includes managed encrypted backup and recovery services alongside existing infrastructure solutions. CEO Chuck Piluso highlighted the agreement as a testament to DSC's ability to meet customer needs and capitalize on cross-selling opportunities from subsidiary consolidations.
- Expanded contract with a leading global business process solutions provider.
- Six-figure deal enhances revenue potential.
- Inclusion of managed encrypted backup and recovery services boosts service portfolio.
- Contract expansion secured through CloudFirst subsidiary, emphasizing strategic growth.
- CEO's statement indicates strong up-sell and cross-sell potential from subsidiary consolidation.
- No specific financial figures disclosed, limiting detailed revenue impact assessment.
Insights
Data Storage Corporation's expanded contract is likely to have a meaningful impact on its financial performance. The contract, described as a 'six-figure' deal, while not exceptionally large, indicates steady growth and enhanced revenue flow from an existing client. This uptrend in sales suggests that DSC's services are meeting client expectations, which can lead to higher client retention rates and additional upsell opportunities.
From a revenue standpoint, it's important to note that recurring revenue models, like managed backup and recovery services, support predictable and stable cash flows. This is a positive sign as it can improve financial stability and investor confidence in the company's future revenue streams. However, investors should also consider the costs associated with expanding services and whether these will significantly impact margins.
In the short-term, this contract could slightly boost revenue, but the long-term benefits might be more substantial if it leads to additional cross-selling opportunities and higher client retention.
Providing managed encrypted backup and recovery services as part of this expanded contract underlines the growing importance of cybersecurity in today's business environment. As data breaches and cyber threats continue to rise, companies are increasingly investing in robust cybersecurity measures and this contract reinforces DSC's positioning in this critical market. Managed encrypted backup services ensure that client data is securely stored and can be quickly recovered in case of data loss or cyber-attacks.
Investors should find confidence in DSC's ability to provide such high-demand services, as it indicates the company is staying relevant and competitive in a rapidly evolving market. However, the effectiveness and reliability of these services are paramount. Any failure in delivering these services could have significant repercussions for the company’s reputation and client trust.
Overall, this move by DSC aligns well with industry trends and client needs, positioning the company for potential growth in the cybersecurity sector.
The expansion of DSC's contract with a leading business process solutions provider highlights a key strategic move to solidify its market position. By leveraging its CloudFirst subsidiary, DSC is demonstrating its ability to cross-sell and integrate various services, a strategy that could strengthen its market presence and competitive edge. The announcement also points to the company's ability to harness synergies from its subsidiaries, which can lead to operational efficiencies and broadened service offerings.
This strategy is beneficial for both short-term gains and long-term growth. In the short-term, it enhances revenue streams from existing clients, while in the long-term, it positions DSC as a comprehensive provider of IT solutions. This diversified approach can attract new clients seeking integrated services, thereby expanding DSC’s market share.
It’s important for investors to monitor how effectively DSC can continue to capitalize on these synergies and grow their client base while maintaining high service standards.
MELVILLE, N.Y., June 13, 2024 (GLOBE NEWSWIRE) -- Data Storage Corporation (Nasdaq: DTST) (“DSC” and the “Company”), a provider of diverse business continuity solutions for disaster-recovery, cloud infrastructure, cyber-security, and IT automation, today announced that it has expanded its contract with a leading provider of end-to-end business processes for their customers globally. Through this six-figure expanded contract, the Company will provide managed encrypted backup and recovery services in addition to its already contracted infrastructure solutions. This contract was secured through its CloudFirst subsidiary.
Chuck Piluso, CEO of Data Storage Corporation, stated, “We are proud to have expanded this contract with a leading business solutions provider as it further validates our ability to meet the growing needs of our customers. We believe this agreement is also a reflection of our ability to up-sell solutions adding value for existing customers and the vast cross-selling opportunities as a result of the consolidation of two of our subsidiaries.”
About Data Storage Corporation
Data Storage Corporation (Nasdaq: DTST) is a family of fully integrated cloud-hosting, disaster-recovery, cyber security, IT automation, and voice & data companies, built around technical asset investments in multiple regions, providing services to a broad range of domestic and global customers, including Fortune 500 clients, across a wide range of industries, such as government, education, and healthcare, with a focus on the rapidly growing, multi-billion-dollar business continuity market. A stable and emerging growth leader in cloud infrastructure support, DTST companies operate in regional data center facilities across North America, sustainably servicing clients via recurring subscription agreements. Additional information about the Company is available at: www.dtst.com and on Twitter (@DataStorageCorp).
Safe Harbor Provision
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, that are intended to be covered by the safe harbor created thereby. Forward-looking statements are subject to risks and uncertainties that could cause actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements. Statements preceded by, followed by or that otherwise include the words “believes,” “expects,” “anticipates,” “intends,” “projects,” “estimates,” “plans” and similar expressions or future or conditional verbs such as “will,” “should,” “would,” “may” and “could” are generally forward-looking in nature and not historical facts, although not all forward-looking statements include the foregoing. The forward looking statements in this press release include statements such as continuing to grow revenue and increase profitability as the Company executes on its strategic initiatives, the consolidation of the CloudFirst and Flagship subsidiaries positioning the Company to optimize operations, leverage its technical teams, realize greater efficiencies, and improve internal resource allocation, while capitalizing on extensive cross-selling and upselling opportunities among its customer networks, the two meaningful announced contracts being just the first of many such announcements that will come from the efforts of the combined organizations, having developed a robust business strategy that we will drive growth and secure sustainable profitability while maximizing long term value for shareholders and providing meaningful updates to shareholders as developments unfold. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can provide no assurance that such expectations will prove to have been correct. These forward-looking statements are based on management’s expectations and assumptions as of the date of this press release and are subject to a number of risks and uncertainties, many of which are difficult to predict that could cause actual results to differ materially from current expectations and assumptions from those set forth or implied by any forward-looking statements. Important factors that could cause actual results to differ materially from current expectations include the Company’s ability to execute and advance its growth strategies. These risks should not be construed as exhaustive and should be read together with the other cautionary statements included in the Company’s Annual Report on Form 10-K, subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K filed with the Securities and Exchange Commission. Any forward-looking statement speaks only as of the date on which it was initially made. Except as required by law, the Company assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, changed circumstances or otherwise.
Contact:
Crescendo Communications, LLC
212-671-1020
DTST@crescendo-ir.com
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