Data Storage Corporation Selected by Leading U.S. Insurance Company for Cloud Migration, Hosting and Managed Services
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The announcement by Data Storage Corporation about securing a contract with a major U.S. insurance company for cloud migration represents a significant business development. The migration project, coupled with ongoing hosting and managed services, indicates a strong potential for recurring revenue streams. This is particularly important for investors as it suggests a level of financial predictability and stability in future earnings. The company's ability to win such a contract over competitors also speaks to its competitive advantage in the marketplace, which could lead to further business opportunities and market share growth.
Moreover, the focus on advanced security solutions aligns with the increasing demand for cyber-security in the wake of heightened digital threats. This could position Data Storage Corporation favorably as businesses continue to prioritize robust security measures. The long-term implications for the company might include not only an expanded partnership with this particular insurance company but also the potential to attract other large-scale clients seeking similar services.
From a financial perspective, the deal between Data Storage Corporation and the insurance company is noteworthy. The high-margin aspect of the recurring revenue indicates a positive impact on the company's profit margins and bottom line. Investors should pay attention to the subsequent quarterly reports to assess the financial impact of the deal on the company's revenue growth and profitability metrics.
It's also essential to consider the capital expenditures and initial costs associated with such large-scale cloud migrations. While the investment in infrastructure and services is substantial, the return on investment will likely be evaluated through the lens of customer retention rates, expansion of services and operational efficiencies gained by the insurance company.
The emphasis on advanced security solutions in the Data Storage Corporation's deal is a critical aspect of the contract. As businesses become more digital, the risk landscape evolves, making cybersecurity a vital component of any IT service offering. The company's proven track record in data management and security, especially with Fortune 500 and financial services companies, serves as a strong validation of its expertise.
Investors should consider the growing market for cybersecurity solutions and the company's potential to capitalize on this trend. The ability to provide comprehensive security and compliance services may give Data Storage Corporation a competitive edge in attracting clients who are increasingly concerned about data breaches and regulatory compliance.
MELVILLE, N.Y, March 21, 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 its CloudFirst Solutions subsidiary has been selected by one of the largest United States insurance companies to migrate their data center to the cloud for one of the customer’s divisions. In addition to the cloud migration, Data Storage Corporation will provide hosting and managed services, including the implementation of a comprehensive suite of advanced security solutions, ensuring the highest standards of data protection and compliance.
After an extensive evaluation of various providers, the insurance company selected CloudFirst Solutions for this important project. The decision was influenced by the Company’s highly reliable data circuits and its track record of providing data management and cloud services to Fortune 500 and leading financial services companies.
“We are honored to have been chosen by one of the largest insurance providers for this critical cloud migration project, as well as the opportunity to provide ongoing hosting and support services that will offer a steady stream of high-margin, recurring revenue,” said Chuck Piluso, CEO of Data Storage. “This collaboration not only highlights our expertise in cloud services and security but also marks the beginning of a promising relationship. We are confident that our solutions will deliver exceptional results and pave the way for expanding our partnership across additional divisions and geographies in the future.”
Hal Schwartz, President of the Company’s CloudFirst Solutions subsidiary, further noted, “This new contract serves as a testament to our ability to meet the complex needs of leading enterprises and our dedication to advancing technology that supports our clients' growth and success. Our selection illustrates the value of our offering, as well as the importance of robust security measures in today’s increasingly digital and risk-prone business environment.”
About Data Storage Corporation
Data Storage Corporation (Nasdaq: DTST) provides cloud infrastructure, disaster-recovery, cyber security, managed services, as well as voice & dedicated internet access. The Company’s technical assets and personnel operate throughout the United States and Canada providing support to a broad range of domestic and global clients, including Fortune 500 companies, across a wide range of industries, such as government, education, and healthcare. The Company focuses on the rapidly growing, multi-billion-dollar cloud infrastructure, cyber security and business continuity marketplace. Data Storage is an established and emerging growth leader in these markets. 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. 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 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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