AI Analysis | Feedback

Here are 1-3 brief analogies for Data Storage (DTST):

• Like a managed cloud service provider specializing in data backup, disaster recovery, and cybersecurity for businesses, akin to a focused version of Amazon Web Services (AWS) or Microsoft Azure for enterprise data resilience.
• Similar to Iron Mountain, but providing cloud-based data management, disaster recovery, and cybersecurity as a managed service, rather than primarily physical record keeping.
• Think of them as a dedicated, outsourced IT department for a company's critical data, offering cloud services, backup, and disaster recovery, akin to a specialized arm of IBM Global Services focusing on data resilience.

AI Analysis | Feedback

• Cloud Infrastructure and Disaster Recovery as a Service (DRaaS): Provides scalable cloud computing resources and ensures business continuity through rapid recovery of IT systems and data in the event of a disaster.
• Managed Services: Offers comprehensive management of IT infrastructure, including monitoring, maintenance, and support for servers, networks, and applications.
• Data Backup and Recovery: Delivers secure and reliable solutions for backing up critical data and facilitating its quick restoration to minimize downtime.
• Colocation Services: Provides secure physical space, power, cooling, and network connectivity for clients to house their own servers and IT equipment in a data center environment.
• Voice and Internet Connectivity: Offers reliable voice communication solutions and high-speed internet access, often integrated with their other data center and cloud services.

AI Analysis | Feedback

Data Storage Corporation (symbol: DTST) primarily sells its services to other companies (Business-to-Business or B2B) rather than directly to individuals.

DTST, through its operating subsidiaries like Flagship Solutions Group and DSC, provides a range of IT solutions including cloud infrastructure, disaster recovery, managed IT services, and cybersecurity solutions. Their services are aimed at helping organizations protect and manage their digital assets.

According to Data Storage Corporation's public filings, the company has a diversified customer base and explicitly states that it does not rely on a single customer or a small group of customers for a significant portion of its revenue. Therefore, specific names of major customers are not publicly disclosed by the company.

Instead, DTST serves a broad range of companies across various industries and sizes, which include:

• Healthcare organizations
• Financial services firms
• Government entities
• Manufacturing companies
• Small to medium-sized businesses (SMBs)
• Fortune 500 companies

Given the diversified nature of their client base and the lack of reliance on a few key customers, individual customer names with their symbols are not available or disclosed.

AI Analysis | Feedback

• Broadcom (AVGO)
• Veeam Software
• Hewlett Packard Enterprise (HPE)
• Microsoft (MSFT)
• Fortinet (FTNT)
• Palo Alto Networks (PANW)

AI Analysis | Feedback

Charles M. Piluso, Chairman and Chief Executive Officer

Mr. Piluso co-founded CloudFirst Technologies Corporation, a subsidiary of Data Storage Corporation, in 2001. He also co-founded North American Telecommunication Corporation, where he served as Chairman and President, and was instrumental in its growth as a facilities-based Competitive Local Exchange Carrier across ten states. Additionally, he founded and served as Chairman of International Telecommunications Corporation, which successfully went public in 1997 with a valuation of $800 million after a consolidation.

Chris H. Panagiotakos, Chief Financial Officer and Principal Accounting Officer

Mr. Panagiotakos joined Data Storage Corporation as Chief Financial Officer on May 18, 2021. Prior to this, he was the Vice President, Corporate Controller of Cineverse Corp. (formerly Cinedigm Corp.) from April 2017 to March 2021, and before that, he was Corporate Assistant Controller at Cinedigm Corp. from October 2013 to April 2017. He has over 26 years of experience in public company accounting, including various roles in the accounting department at Young Broadcasting Inc. from 2004 to 2013, such as Controller of a division and Assistant Corporate Controller. Mr. Panagiotakos is a Certified Public Accountant.

Harold J. Schwartz, President and Director

Mr. Schwartz has served as President and Director of Data Storage Corporation since December 2016, and he also held the position of Treasurer from 2016 to 2020. He is also the President of CloudFirst and a member of its board of directors. From 1988 to 2016, Mr. Schwartz co-founded ABC Services, Inc. and served as its Vice President.

Wendy Schmittzeh, Chief Administrative Officer

Ms. Schmittzeh was named Chief Administrative Officer in 2024, having previously served as Manager of Administration from 2011 to 2023 and then Director of Corporate Administration. She has been crucial in managing initiatives related to mergers and acquisitions, office and facilities management, human resources, corporate relocations, and executive leadership support.

Thomas C. Kempster, Executive Vice President, Strategic Development and Director

Mr. Kempster has been Executive Vice President and Director since February 2020 and a member of the Board since December 2016. Before his current executive role, he was the President of Service Delivery until 2021, where he was instrumental in establishing the company's customer service standards. His experience also includes founding ABC Services, Inc.

AI Analysis | Feedback

The key risks to Data Storage (symbol: DTST) include the following:

1. Lack of a Liquid Market and Stock Volatility: There is no assurance that a liquid market for DTST's securities will develop, and minimal trading has occurred due to a limited float. Consequently, investors may not be able to liquidate their investments readily. The company's stock price has also been volatile in the past and may continue to be in the future, potentially leading to substantial losses for investors. Additionally, the stock is considered "high risk" due to potential significant daily price movements and periodic low trading volume.
2. Challenges with Growth Strategy and Integration of Acquisitions: Data Storage Corporation's ability to achieve its anticipated results depends on its success in continuing to grow its subscription-based services and effectively executing its growth strategies. The integration of acquired companies' operations presents challenges, including coordinating administrative, sales, marketing, accounting, and finance functions, as well as expanding information and management systems. The company faces various risks associated with its growth and expansion plans, which could negatively impact its business, financial condition, and operating results.
3. Customer Concentration Risk: A significant portion of Data Storage Corporation's revenues has historically come from a limited number of customers. This concentration could pose a risk if one or more of these key customers were to reduce their business with DTST or cease to be customers.

AI Analysis | Feedback

The increasing dominance and comprehensive offerings of hyperscale cloud providers such as Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform (GCP).

AI Analysis | Feedback

Addressable Markets for Data Storage (DTST) Main Products and Services

• Cloud Hosting and Managed Cloud Services: The global cloud computing market size is estimated at approximately USD 912.77 billion in 2025 and is projected to reach USD 5.15 trillion by 2034. Another estimate places the global cloud computing market size at approximately USD 1,294.9 billion in 2025, projected to grow to about USD 2,281.1 billion by 2030. For the North American region, the cloud computing market held a significant revenue share of 52.27% in 2024.
• Disaster Recovery as a Service (DRaaS) and Data Protection: The global data backup and recovery market size is projected to reach USD 22 billion by 2030. Another source indicates the market value of the global backup and disaster recovery market was worth USD 8.02 billion in 2022 and is projected to reach USD 45.7 billion by 2030. The data backup and recovery software market size was USD 7.38 billion in 2024 and is projected to grow to USD 8.10 billion by 2025, exceeding USD 17.11 billion by 2033. North America is expected to account for the largest market share, approximately 35%, in the data backup and recovery market.
• Managed IT Services (including Cybersecurity, IT Automation, and Voice & Data Solutions): The global managed services market size was estimated at USD 365.33 billion in 2024 and is projected to grow to USD 511.03 billion by 2029. Another estimate places the global managed services market size at USD 335.37 billion in 2024, projected to reach USD 731.08 billion by 2030. Worldwide revenue from managed services is estimated at US$ 302.11 billion in 2024 and is forecasted to climb to US$ 611.17 billion by the end of 2034. North America is projected to hold a leading position with a 33% market share in the managed services market in 2024.

AI Analysis | Feedback

Data Storage (DTST) is positioning itself for future revenue growth through several strategic initiatives over the next two to three years.

Here are 3-5 expected drivers of future revenue growth for Data Storage (DTST):

1. Growth in Subscription-Based Cloud Infrastructure and Disaster Recovery Services: The company has demonstrated positive results and a strategic shift towards higher-margin, recurring subscription-based cloud services, including Nexxis offerings. This growth is driven by both the acquisition of new clients and the expansion of services for existing customers.
2. Expansion into High-Growth Technology Sectors (AI, Cybersecurity, Vertical SaaS): Data Storage plans a strategic rebranding to align with new high-growth verticals such as Artificial Intelligence (AI), cybersecurity, and vertical Software-as-a-Service (SaaS) solutions. This includes exploring acquisitions and investments in AI vertical software and partnerships.
3. International Market Expansion: Data Storage has initiated a strategic global expansion, particularly targeting the UK and European markets, where there is increasing demand for robust cloud services that support mission-critical workloads on IBM Power systems. This expansion is pursued through strategic partnerships with data centers, cloud service providers, and managed service providers.
4. Strategic Acquisitions and Investments: The company intends to utilize proceeds from the proposed sale of CloudFirst Technologies to reinvest in acquisitions and innovations that support its strategic rebranding and growth objectives. This includes actively exploring investments in AI vertical software and partnerships.
5. Broadening Customer Base and Expanding Services: Data Storage aims to increase revenue by continuously adding new subscription clients and expanding the scope of services provided to its existing customer base. The focus is on growing its "global partner ecosystem" and catering to diverse clientele, including Fortune 500 companies across sectors like government, education, and healthcare.

AI Analysis | Feedback

Share Repurchases

• Data Storage Corporation announced a share repurchase program on July 24, 2025, to repurchase up to 85% of its issued share capital, funded by cash on hand and net proceeds from the CloudFirst divestiture.
• The board authorized a tender offer on August 14, 2025, to repurchase up to 85% of outstanding shares using 85% of total cash, including sale proceeds and existing balances.
• On October 20, 2025, the company completed the repurchase of substantially all outstanding warrants issued in July 2021, paying $2,049,388 to repurchase warrants exercisable for 858,750 shares of common stock.

Share Issuance

• On July 19, 2021, Data Storage Corporation announced a registered direct offering and concurrent private placement totaling approximately $8.3 million, involving the sale of 1,375,000 shares of common stock and warrants to purchase up to 1,031,250 shares.
• In May 2021, the company priced an upsized underwritten public offering of 1,600,000 units at $6.75 per unit, expecting gross proceeds of $10.8 million, with each unit comprising one share of common stock and one warrant.

Outbound Investments

• Data Storage Corporation announced the sale of its wholly-owned subsidiary, CloudFirst Technologies Corporation, to Performive, a cloud services provider backed by Renovus Capital Partners, for $40 million. The transaction closed on September 11, 2025, with net proceeds expected to be approximately $24 million.
• Following the CloudFirst sale, Data Storage plans to pursue strategic acquisitions in high-growth sectors, including AI-enabled SaaS, cybersecurity, and healthcare automation.

Capital Expenditures

• In the last 12 months (prior to November 2025), capital expenditures were -$1.38 million.
• For the six months ended June 30, 2025, capital expenditures were ($478,811), compared to ($902,571) for the six months ended June 30, 2024.
• Management indicated that capital expenditure spending for 2025 is not expected to significantly increase, as recent investments in UK and US data centers have largely completed current expansion phases.