Data Storage up 30% after announcing multi-million dollar contract

Data Storage Corporation (NASDAQ: DTST) went up by about 30% after it announced that Flagship Solutions Group, its wholly-owned subsidiary, got a multi-million dollar contract agreement with one of the most well-known professional sports teams in the country. 

The multi-million dollar contract states that Flagship Solutions will provide encrypted and modernized storage systems to support the well-recognized sports team, its affiliates, and its stadium. 

Details of the project 

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The project will expand and broaden the security of the team’s on-premise cloud backup services and storage while giving the team the ability to get a lot more value from its stored information as well as help mitigate any security breaches and threats, including ransomware. 

The project will leverage IBM’s Data Resilience, High-Performance Storage, Zero Trust Identities and Data, Flash, and Power 10 capabilities to help modernize the team’s technology infrastructure, secure data, and predict threats. 

How does top management feel? 

Data Storage’s Chief Executive Officer, Chuck Piluso, said that they were delighted to announce this multi-million dollar contract with this well-renowned sports team because it helps show their gaining traction in the industry. The CEO said:

We were selected based on the scalability and performance of our solutions, which provides further validation of our Flagship acquisition last year. This award is also a direct result of our new marketing strategy, focused on key industries: sports & entertainment, banking & finance, healthcare and government.

Mr. Piluso claimed that while both Windows and Intel servers have been going through a huge migration process to the cloud, the IBM Power server space has only just started its transition. He believes they’re still firmly ahead of this rapidly growing multi-billion dollar market. Flagship Solutions’ Chief Executive Officer, Mark Wylie, said:

While no one can predict when a cyberattack might occur, there are proactive measures organizations can take to mitigate data loss and prevent potential disruption to business operations.

Mr. Wylie claims that when it comes to large sports organizations and entities, effectiveness and efficiency are key to ensuring business operations run as smoothly as possible, which typically includes data security, data storage, and improving and monitoring of business operations.