Data Storage Corporation Expands Contract with a Global Telecommunications Company
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The new contract secured by Data Storage Corporation (DSC) with a multinational telecommunications company signifies a strategic enhancement in DSC's business portfolio. The transition from an old tape library to new advanced backup technology is indicative of the growing market demand for modern, efficient data storage solutions. This move not only strengthens DSC's revenue stream through a six-figure deal but also showcases the company's ability to retain and expand relationships with key clients.
From a market perspective, the shift towards advanced backup solutions is a response to the increasing data volumes and the need for more robust disaster recovery systems. Given the critical nature of telecommunications infrastructure, the adoption of such technology suggests a trend where companies prioritize investment in cybersecurity and data management. This could signal a potential growth area for businesses operating in the IT services and cloud infrastructure sectors.
A six-figure contract, while significant, may not drastically alter the financial trajectory for a Nasdaq-listed company like DSC. However, it does contribute positively to the company's financial health. Investors should consider the implications of this contract on DSC's future earnings, as it could lead to recurring revenue streams if the service and maintenance aspect of the contract is extended over several years.
Additionally, the established twelve-year relationship with the client provides a level of stability and predictability in earnings, which is favorable from an investment standpoint. The ability to meet compliance requirements in multiple countries also highlights DSC's adaptability and expertise in navigating complex regulatory environments, potentially opening doors for further international contracts.
In today's digital age, the importance of secure and reliable data backup systems cannot be overstated, particularly for entities within the telecommunications sector. DSC's move to provide an advanced backup solution that utilizes less tape while increasing storage capacity is a significant improvement over traditional data storage methods. It reflects a proactive approach to cybersecurity, addressing the heightened risks associated with data breaches and loss.
By implementing a solution that meets compliance requirements across multiple jurisdictions, DSC demonstrates its commitment to global data protection standards. This not only benefits the client but also enhances DSC's reputation as a provider capable of delivering complex cybersecurity solutions. Such advancements are critical in maintaining the integrity of the telecommunications infrastructure, which is a backbone for both economic activities and personal communication.
MELVILLE, N.Y., Jan. 24, 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 services, today announced that it has secured a six-figure contract with a multinational telecommunications company to replace and maintain its old tape library with new advanced backup technology. The Company has had an established relationship with this multinational corporation for over a decade and this new contract expands on the current solutions provided by Data Storage Corporation.
“We are proud to have maintained a long-term successful relationship with this multinational corporation for over twelve years,” commented Thomas Kempster, Chief Executive Officer of Flagship. “In addition to the equipment and services we currently provide, we designed, customized, and are implementing a new backup solution with advanced technology to increase their storage capacity, while utilizing less tape and meeting compliance requirements in multiple countries. Installation is well underway and we look forward to working closely with this organization for years to come.”
About Data Storage Corporation
Data Storage Corporation (Nasdaq: DTST) is a family of fully integrated cloud-hosting, disaster-recovery, cyber security, 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 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 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. The forward-looking statements in this press release include statements such as the merger of subsidiaries enabling the Company to continue to streamline operations, grow its technical teams, achieve further economies of scale and enhance resource allocation internally, the Company’s ability to leverage the vast cross-selling and upselling opportunities across respective customer bases and continue delivering exceptional value to its customers, the growth expected of the united company, the combination providing a unified platform to capitalize on the vast opportunities within the market and increase customer penetration, the merger resulting in improved business efficiencies, while effectively reducing redundant resources and expenses and the Company having built a scalable organization poised for accelerated growth by combining Flagship’s experienced leadership team with CloudFirst. 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 continue to streamline operations, grow its technical teams, achieve further economies of scale and enhance resource allocation internally, the Company’s ability to leverage the cross-selling and upselling opportunities across respective customer bases and continue delivering exceptional value to its customers and the Company’s ability to achieve the growth expected of the united company and increase customer penetration. 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 for the year ended December 31, 2022, 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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