Data Storage Corporation Announces Update on Government Sector Business Unit

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Government Sector Adds New State and Municipal County Offices to Growing Client Roster

Data Storage Corporation (OTC QB:DTST), a long-standing leader in cloud storage and cloud computing with over 11 years’ experience in providing IaaS and SaaS solutions insuring disaster recovery, business continuity and compliance, today announced continued momentum in its Governmental Sector business segment, recently completing a number of information technology, disaster recovery, business continuity and hosted services programs with various State and local municipal government offices and departments.

According to InformationWeek Government’, third annual Federal Cloud Computing Survey, Cloud adoption in the Government sector is accelerating as more than half of the agencies surveyed have identified use cases for cloud services and 46% have evaluated cloud products and services. Fifty percent of survey respondents said that their agencies are moving ahead with cloud adoption or are in the early stages of doing so versus only 40% last year. The survey also indicated that of those agencies using or assessing cloud services, 18% are using public clouds and 14% are using private clouds but demand is building for private clouds, with 39% of these respondents indicating they're highly likely to adopt them. Finally, when asked about the cost impact of Cloud adoption, lowering the cost of IT operations and reducing investment in servers and data center equipment was important, cited by 54% and 51% of respondents, respectively. Fifty-one percent say their organizations have performed cost analyses and determined that the cloud offers some level of saving.

Data Storage Corporation’s proven experience serving the data management and protection needs of organizations operating in highly regulated industries including Healthcare and Financial Services, makes it a top choice for State and local governments seeking cost effective, cloud-based, hosted services. With the addition of advanced message archiving and analytics technology from recently acquired Message Logic, Data Storage Corporation can provide unmatched expertise in the development and management of secure, cost effective solutions for organizations with complex, distributed and heterogeneous information technology environments. As a specialist in IBM iSeries/AS400, Linux and Windows environments, only Data Storage Corporation is able to implement solutions featuring best-in-class technology from leading technology providers and partners including Asigra, Blue Arc (Hitachi Data Systems), VMWare, Dell, Cisco, IBM, Veeam and others.

“We are pleased at the pace of growth in our Government Sector business during the first half of 2012,” said Matthew Grosso, executive vice president and CTO at Data Storage Corporation. “This growth is a testament to Data Storage Corporation’s ability to understand the unique needs and security requirements of working within the different levels of State and Municipal government. As one of the leading experts in managing both IBM and Windows environments, we are one of the few hosted solutions providers that can deliver the level of consultative planning and system design backed by a commitment to high level service that is required by Government Sector clients.”

Data Storage Corporation’s growing list of Government sector clients includes:

  •     Alabama Secretary of State
  •     Charles County Public Library
  •     City of Wilmington
  •     Mills County, IA
  •     NY Liquidation Bureau
  •     St. Tammy Parish Coroner’s Office
  •     Town of Huntington, NY
  •     Will County, IL

Work for these clients include data protection/hosting and recovery as a service, information technology project management and business continuity planning, using solutions compliant with Federal Information Processing Standard (FIPS) Publication 140-2 standards and featuring 256-bit AES encryption.

About Data Storage Corporation
Data Storage Corporation, an 11 year veteran in cloud storage and cloud computing solutions, focuses on data protection, disaster recovery and business continuity solutions that assist organizations in protecting their data, minimizing downtime and ensuring regulatory compliance. Serving the rapidly emerging business continuity market which is expected to grow to over $39 billion over the next several years, Data Storage Corporation’s clients save time and money, gain more control and better access to data and enable the highest level of security for that data. The company’s solutions include: Infrastructure-as-a-Service, data backup and storage, high availability data replication services, email archive and compliance solutions for e-discovery, continuous data protection, data de-duplication and virtualized system recovery. Headquartered in Garden City, N.Y., Data Storage Corporation offers its solutions and services to healthcare, banking and finance, distribution services, manufacturing, construction, education and government industries. For more information, visit Follow Data Storage Corporation on Twitter at:

Cautionary Statement on Risks Associated with Data Storage Corporation - Forward-Looking Statements: This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 by Data Storage Corporation that are subject to risks and uncertainties. The words "believe," "expect," "anticipate," "intend," "plan," "estimate," "may," "should," "could," and similar expressions are intended to identify such statements. Forward-looking statements are not guarantees of future performance and are to be interpreted only as of the date on which they are made. Data Storage Corporation undertakes no obligation to update or revise any forward-looking statement except as required by law. Data Storage Corporation advises investors that it discusses risk factors and uncertainties that could cause Data Storage Corporation's actual results to differ from forward-looking statements in its periodic reports filed with the Securities and Exchange Commission ("SEC"). Data Storage Corporation's SEC filings can be accessed through the SEC's EDGAR Database at (Data Storage Corporation has EDGAR CIK No. 0001419951).

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Data Storage Corporation, SafeData and the Data Storage Corporation logo are trademarks Data Storage Corporation. All other trademarks or registered trademarks are properties of their respective owners.

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Michael Glickman
Alliance Advisors
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