Data Storage Corporation Expands Services with One of the Nation’s Largest Suppliers of Promotional Products

Rhea-AI Summary

Data Storage 's subsidiary, CloudFirst, has expanded its contract with a major promotional products supplier. The new seven-figure contract follows CloudFirst's successful implementation of a comprehensive disaster recovery solution for the client in 2023. The expanded agreement includes migrating critical production systems to CloudFirst's Chicago data center, providing a fully monitored and managed private cloud infrastructure. This development showcases CloudFirst's growing market presence and ability to deliver high-value solutions. The contract expansion highlights the importance of geographically diverse data centers in meeting client needs for business continuity and cloud infrastructure services.

Positive

• Secured a new seven-figure contract, indicating significant revenue growth
• Expanded services with an existing major client, demonstrating customer satisfaction
• Successfully implemented a comprehensive disaster recovery solution
• Migrated client's critical production systems to CloudFirst's data center
• Showcased the value of geographically diverse data centers

Negative

• None.

Insights

Financial Analyst

Data Storage Corporation's (DSC) expanded contract with a major supplier of promotional products underscores a significant revenue opportunity. This seven-figure contract highlights not only DSC’s capability to attract and retain large clients but also its success in executing high-value projects. The expansion of services indicates DSC’s strategic growth in cloud infrastructure and disaster recovery solutions, which are vital in today’s business environment. These services are critical for minimizing disruptions and ensuring business continuity, especially for large-scale operations.

From a financial perspective, securing a substantial contract of this magnitude positively impacts DSC's revenue and profit margins. The consistent growth in CloudFirst's client base suggests that the subsidiary's services are in high demand, likely contributing to sustained revenue streams and potentially leading to higher earnings in subsequent quarters. Investors should note the trend of expanding contracts, as it may hint at DSC's ability to generate recurring revenue and achieve long-term financial stability.

Cybersecurity Expert

The integration of a comprehensive disaster recovery solution and migration to a private cloud infrastructure underscores the growing importance of cybersecurity in the business continuity space. CloudFirst’s success in securing such a significant client demonstrates its competency in offering robust and reliable solutions. The focus on rapid recovery and high-speed secure switching during disruptions is important for large enterprises, as it minimizes downtime and protects sensitive data.

Given the increasing frequency of cyber threats, companies are prioritizing investments in secure and resilient IT infrastructure. CloudFirst’s ability to provide a high level of security and disaster recovery protocols positions it favorably in a competitive market. For investors, this suggests that DSC is well-aligned with current cybersecurity trends and can capitalize on the growing demand for secure cloud solutions.

MELVILLE, N.Y., July 15, 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 its subsidiary, CloudFirst, has expanded its contract with one of the nation’s largest suppliers of promotional products. The new seven-figure contract reflects CloudFirst’s continued success and growing market presence.

In 2023, CloudFirst was selected to implement a comprehensive disaster recovery solution for the client, ensuring rapid recovery and enhanced security in a cloud-based environment. This solution included an optimized network for high-speed, secure switching during disasters or interruptions. Following the successful implementation, the client chose CloudFirst to migrate their critical production systems to the Company’s state-of-the-art data center in Chicago. This integration offers the client a fully monitored and managed private cloud infrastructure solution.

Hal Schwartz, President of CloudFirst, stated, “Securing another significant contract with our client demonstrates our ability to deliver and support solutions that meet and exceed client expectations. This contract also highlights the value of our geographically diverse data centers for our clients. We look forward to strengthening our relationship and continuing to provide exceptional value to all our clients.”

About Data Storage Corporation
Data Storage Corporation (Nasdaq: DTST) is a leading provider of fully managed cloud hosting, disaster recovery, cybersecurity, IT automation, and voice & data solutions. With strategic technical investments in multiple regions, DTST serves a diverse clientele, including Fortune 500 companies, in sectors such as government, education, and healthcare. Focused on the fast-growing, multi-billion-dollar business continuity market, DTST is recognized as a stable and emerging growth leader in cloud infrastructure, support and the migration of data to the cloud. Our regional data centers across North America enable us to deliver sustainable services through recurring subscription agreements.

For more information, please visit www.dtst.com or follow us 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

FAQ

What new contract did Data Storage (DTST) announce on July 15, 2024?

Data Storage announced that its subsidiary, CloudFirst, expanded its contract with one of the nation's largest suppliers of promotional products, securing a new seven-figure deal.

What services is CloudFirst providing to the promotional products supplier under the expanded contract?

CloudFirst is migrating the client's critical production systems to its Chicago data center, offering a fully monitored and managed private cloud infrastructure solution.

When did CloudFirst initially implement a disaster recovery solution for this client?

CloudFirst initially implemented a comprehensive disaster recovery solution for the client in 2023.

How does this contract expansion demonstrate CloudFirst's capabilities?

The contract expansion demonstrates CloudFirst's ability to deliver and support solutions that meet and exceed client expectations, as well as the value of their geographically diverse data centers.