Data Storage Corporation’s CloudFirst Completes Major Cloud Upgrade for Leading Food Distributor
Data Storage (Nasdaq: DTST) announced that its CloudFirst subsidiary has completed a major on-premise infrastructure upgrade for a leading food distributor. The project involved migrating the customer to newer processors, delivering enhanced performance, reliability, and scalability.
The upgrade addressed the customer's challenges including system performance limitations, capacity constraints, and rising IT costs. CloudFirst's solution provides seamless integration with major cloud providers like AWS, Microsoft Azure, and Google Cloud, enabling improved multi-cloud optimization and workload management.
The implementation was particularly complex due to the customer's legacy OS and older processors, but CloudFirst executed the transition with minimal operational disruption while enhancing backup and disaster recovery capabilities.
Data Storage (Nasdaq: DTST) ha annunciato che la sua CloudFirst ha completato un importante aggiornamento dell'infrastruttura on-premise per un importante distributore alimentare. Il progetto ha comportato la migrazione del cliente a processori più recenti, offrendo prestazioni, affidabilità e scalabilità migliorate.
L'aggiornamento ha affrontato le sfide del cliente, tra cui limitazioni delle prestazioni di sistema, vincoli di capacità e costi IT in aumento. La soluzione di CloudFirst fornisce un'integrazione senza soluzione di continuità con i principali fornitori di cloud come AWS, Microsoft Azure e Google Cloud, consentendo un'ottimizzazione multi-cloud migliorata e una gestione dei carichi di lavoro.
L'implementazione è stata particolarmente complessa a causa del sistema operativo legacy del cliente e dei processori più vecchi, ma CloudFirst ha eseguito la transizione con un minimo di interruzioni operative, migliorando nel contempo le capacità di backup e di recupero in caso di disastro.
Data Storage (Nasdaq: DTST) anunció que su subsidiaria CloudFirst ha completado una importante actualización de infraestructura local para un destacado distribuidor de alimentos. El proyecto implicó la migración del cliente a procesadores más nuevos, lo que proporciona un rendimiento, confiabilidad y escalabilidad mejorados.
La actualización abordó los desafíos del cliente, incluyendo limitaciones en el rendimiento del sistema, restricciones de capacidad y el aumento de los costos de TI. La solución de CloudFirst ofrece una integración fluida con los principales proveedores de la nube como AWS, Microsoft Azure y Google Cloud, permitiendo una mejor optimización de múltiples nubes y gestión de cargas de trabajo.
La implementación fue particularmente compleja debido al sistema operativo heredado del cliente y a los procesadores más antiguos, pero CloudFirst ejecutó la transición con una interrupción operativa mínima mientras mejoraba las capacidades de respaldo y recuperación ante desastres.
데이터 스토리지 (Nasdaq: DTST)는 자회사 CloudFirst가 주요 식품 유통업체를 위한 온프레미스 인프라 업그레이드를 완료했다고 발표했습니다. 이 프로젝트는 고객을 최신 프로세서로 마이그레이션하여 성능, 신뢰성 및 확장성을 향상시키는 것을 포함했습니다.
업그레이드는 시스템 성능 제한, 용량 제약 및 증가하는 IT 비용과 같은 고객의 문제를 해결했습니다. CloudFirst의 솔루션은 AWS, Microsoft Azure 및 Google Cloud와 같은 주요 클라우드 공급자와의 원활한 통합을 제공하여 다중 클라우드 최적화 및 작업 부하 관리를 개선합니다.
구현은 고객의 구형 운영 체제와 오래된 프로세서로 인해 특히 복잡했지만, CloudFirst는 운영 중단을 최소화하면서 백업 및 재해 복구 기능을 향상시키는 전환을 실행했습니다.
Data Storage (Nasdaq: DTST) a annoncé que sa filiale CloudFirst a achevé une importante mise à niveau de l'infrastructure sur site pour un distributeur alimentaire de premier plan. Le projet a impliqué la migration du client vers des processeurs plus récents, offrant des performances, une fiabilité et une évolutivité améliorées.
La mise à niveau a répondu aux défis du client, notamment les limitations de performance du système, les contraintes de capacité et l'augmentation des coûts informatiques. La solution de CloudFirst permet une intégration transparente avec les principaux fournisseurs de cloud tels que AWS, Microsoft Azure et Google Cloud, permettant une optimisation multi-cloud et une gestion des charges de travail améliorées.
L'implémentation a été particulièrement complexe en raison du système d'exploitation hérité du client et des processeurs plus anciens, mais CloudFirst a exécuté la transition avec un minimum de perturbations opérationnelles tout en améliorant les capacités de sauvegarde et de récupération après sinistre.
Data Storage (Nasdaq: DTST) gab bekannt, dass ihre Tochtergesellschaft CloudFirst ein bedeutendes Upgrade der On-Premise-Infrastruktur für einen führenden Lebensmittelverteiler abgeschlossen hat. Das Projekt umfasste die Migration des Kunden auf neuere Prozessoren, die verbesserte Leistung, Zuverlässigkeit und Skalierbarkeit bieten.
Das Upgrade ging auf die Herausforderungen des Kunden ein, einschließlich der Leistungsbeschränkungen des Systems, Kapazitätsengpässen und steigenden IT-Kosten. Die Lösung von CloudFirst ermöglicht eine nahtlose Integration mit führenden Cloud-Anbietern wie AWS, Microsoft Azure und Google Cloud, was eine verbesserte Multi-Cloud-Optimierung und Lastenmanagement ermöglicht.
Die Implementierung war aufgrund des veralteten Betriebssystems und der älteren Prozessoren des Kunden besonders komplex, aber CloudFirst führte den Übergang mit minimalen Betriebsunterbrechungen durch und verbesserte gleichzeitig die Backup- und Notfallwiederherstellungsfähigkeiten.
- Successfully completed major infrastructure upgrade for enterprise customer
- Enhanced integration with multiple cloud providers (AWS, Azure, Google)
- Demonstrated capability to handle complex legacy system migrations
- None.
Insights
Data Storage 's announcement about CloudFirst's successful infrastructure upgrade for a major food distributor represents a strategic win in the company's enterprise client portfolio, though its immediate financial impact remains unquantified.
The complexity of this migration project - moving a customer with legacy systems to advanced processors while maintaining business continuity - demonstrates DTST's specialized technical capabilities in a niche but valuable market segment. For a micro-cap company with a $27.6 million market capitalization, enterprise client retention is particularly significant, as these relationships typically generate higher margins and more predictable revenue streams than SMB clients.
This project likely consists of both one-time implementation revenue and potential ongoing managed service fees. The latter would be more valuable from a valuation perspective, as recurring revenue typically commands higher multiples. DTST's Q3 2023 results showed quarterly revenue of $5.7 million, meaning that significant enterprise client expansions could materially impact financial performance.
The multi-cloud integration capabilities highlighted in the announcement position DTST to capitalize on the growing trend of enterprises adopting hybrid infrastructure strategies. According to Gartner, by 2025, over 75% of organizations will have deployed a multi-cloud or hybrid cloud strategy, creating sustained demand for integration and management services.
The food distribution vertical represents a strategic opportunity, as these companies typically require high-availability systems with minimal downtime due to the perishable nature of their inventory and just-in-time delivery requirements. Success in this vertical could open doors to similar clients with comparable IT needs.
While this announcement signals positive business momentum, investors should note that DTST operates in a highly competitive market dominated by much larger players. The company's ability to carve out defensible niches, particularly in specialized migrations involving IBM power systems, will be important for sustainable growth. For this announcement to significantly impact valuation, we would need to see it translate into accelerated revenue growth and margin expansion in upcoming quarterly results.
MELVILLE, N.Y., Feb. 25, 2025 (GLOBE NEWSWIRE) -- Data Storage Corporation (Nasdaq: DTST) (“DSC” and the “Company”), a leading provider of multi-cloud hosting, managed cloud services, disaster recovery, cybersecurity, and IT automation, that integrates with AWS, Microsoft Azure, and Google Cloud, today announced that its CloudFirst subsidiary has successfully completed a major on-premise infrastructure upgrade for a leading food distributor and long-time enterprise customer, reinforcing its position as a trusted partner for complex IT transformations.
The migration involved moving the customer to the latest processors with significantly higher performance, reliability, and scalability to support the demands of enterprise-scale operations. This upgrade delivers scalability and efficiency while ensuring seamless integration with leading cloud providers, including AWS, Microsoft Azure, and Google Cloud to enhance and optimize their multi-cloud environment.
The project was very complex due to the customer’s older OS, reliance on older processors, and they faced growing operational challenges, including system performance limitations, capacity constraints, and increasing IT costs. CloudFirst conducted a comprehensive assessment and determined that moving them to its most advanced processing environment would eliminate bottlenecks, provide the scalability needed for future growth, and enhance backup and disaster recovery capabilities.
By leveraging its deep experience with IBM power systems and working closely with the customer’s IT team, CloudFirst executed the transition with minimal disruption, ensuring continuous business operations. The upgrade also enables the customer to leverage CloudFirst’s deep integration with hyperscale cloud providers, allowing for greater flexibility, workload optimization, and long-term cost efficiencies.
Chuck Piluso, CEO of Data Storage Corporation, commented, “CloudFirst has a precision approach and commitment to excellence allowing them to continue to earn the trust of enterprise customers who are navigating complex IT. This project highlights our expertise in delivering strategic solutions that seamlessly integrate with hyperscale environments, ensuring reliability, security, and scalability.”
About Data Storage Corporation
Data Storage Corporation (Nasdaq: DTST) through its subsidiaries is a leading provider of multi-cloud hosting, fully managed cloud services, disaster recovery, cybersecurity, IT automation, and voice & data solutions. Recognizing that data migration is a critical step in transitioning from on-premises systems to the cloud, DTST provides comprehensive migration services to ensure seamless, secure, and efficient data transfer, minimizing downtime and optimizing performance.
Through its CloudFirst platform, built on IBM Power Cloud infrastructure, DTST delivers high-performance, scalable, and secure cloud solutions with interoperability across its infrastructure partners, AWS, Microsoft Azure, and Google Cloud.
With data centers supporting cloud platform deployments across the United States, Canada, and the United Kingdom, DTST provides mission-critical cloud services to a diverse clientele, including Fortune 500 companies, government agencies, educational institutions, and healthcare organizations.
As a leader in the multi-billion-dollar cloud hosting and business continuity market, DTST is recognized for its expertise in cloud infrastructure, IT modernization, and data migration, enabling clients to transition to the cloud with confidence and operational continuity.
For more information, please visit www.dtst.com or follow us on X @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. 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 grow its presence in Europe. 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
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DTST@crescendo-ir.com
FAQ
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