The Great Cloud Migration? Data Storage Corporation Is Taking IBM i Systems Into The Cloud

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Almost 10 years after Inc. , Alphabet Inc. and Microsoft Corp. began using Intel Corp.’s x86 machines to host cloud services, a second migration is reportedly replacing IBM Power Systems — which host IBM i servers — in the cloud. 

Migrating IBM i servers to the cloud can create several business advantages, the most obvious of which comes from the reduced cost of data centers. Data Storage Corporation , a provider of diverse business continuity, disaster-recovery-as-a-service (DRaaS) protection, IBM Power infrastructure-as-a-service (IaaS), cyber-security and data analytics solutions, details a reduction in floor space, rent and monitoring costs, which could save businesses significant operating expenses. 

The list of cost reductions is extensive. Because most cloud vendors have their own operational staff, the cloud provider can handle all IBM i IOS administration and maintenance requirements, freeing up valuable time for a team to work on internal functions. The migration also includes a host of technological advantages that may take a business to the next level. 

For example, moving IBM i applications to the cloud can improve scalability by adding disk, memory, or central processing unit (CPU) capacity to IBM i servers on demand. They can provide backup, restoration, system health monitoring, and disaster recovery services — all on-demand and without the need for internal action. 

With only 15% of the industry using cloud services to run IBM i software, Data Storage Corporation believes many businesses are foregoing an ideal opportunity to improve their activities and reduce costs, and Data Storage Corporation is determined to fix that. 

The Value Proposition

Data Storage Corporation  believes a global opportunity for IBM cloud migration services exists. 

It notes that over 1 million IBM Power i virtual servers are just starting to migrate to the cloud. An IBM survey of 500 global users found that 73% of respondents use IBM i to run more than half of their core business applications, and 44% said they run between 76% to 100% of their core applications on IBM i. The latter figure represents a 5% increase from last year’s survey results, indicating growing dependence on IBM i.

As more businesses become aware of IBM i cloud migration, Data Storage Corporation believes it has the experience, platform, and talent necessary to play a central role in the transition. For one, the company has been in the IBM cloud migration environment since 2012 and has worked for major corporations like EssilorLuxottica, Alcoa , Fanatics, Ripple, and The National Association for Stock Car Auto Racing LLC (NASCAR).

In addition, DSC boasts the following metrics: 

42% increase in revenue for Q3 2021
Pro forma revenue of $18 million for 2020
Average revenue per subscription on disaster recovery and IaaS cloud of $3,000 per month 
36-month average term for subscription services 
A 94% renewal rate on subscription agreements 
$12.9 million in cash 
No debt 

Notably, after uplisting to the Nasdaq Stock Exchange in May 2021, Data Storage Corporation completed the acquisition of Flagship Solutions Corp. The acquisition significantly expanded Data Storage Corporation’s services and quickly proved to be highly synergistic with their existing IBM operations, ultimately positioning Data Storage Corporation as a leading, one-stop provider for multi-cloud IT solutions. Since the completion of the acquisition Data Storage Corporation has identified numerous cross-selling opportunities, allowing the Company to realize solid revenue growth in the past quarters.

This post contains sponsored advertising content. This content is for informational purposes only and is not intended to be investing advice.

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