SECURITIES AND EXCHANGE
COMMISSION


Washington,
D.C. 20549





FORM
10-QSB/A







QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE


SECURITIES
EXCHANGE ACT OF 1934





For the
Quarterly period ended   March 31,
2008





Commission
File No. 000-53126





DATA STORAGE CONSULTING
SERVICES, INC.


(Exact
Name of Small Business Issuer as specified in its charter)








Colorado
            20-8096131(State
      or other jurisdiction
            (IRS
      Employer File Number)of
      incorporation)





13990
      Braun RoadGolden,Colorado
            80401(Address
      of principal executive offices)
            (zip
      code)








(303)
883-9334


(Registrant's
telephone number, including area code)





Check
whether the issuer: (1) filed all reports required to be filed by Section 13 or
15(d) of the Exchange Act during the past 12 months (or for such shorter period
that the registrant was required to file such reports); and (2) has been subject
to such filing requirements for the past 90 days.    Yes
[X]  No [ ]





Indicate
by check mark whether the registrant is a shell company (as defined in Rule
12b-2 of the Exchange Act)     Yes [
X ]    No [ ]





As May 1,
2008, registrant had outstanding 8,929,000 shares of the registrant’s common
stock.  The securities of this Company do not trade in a public
market.





Transitional
Small Business Disclosure Format (check one):  Yes [
]    No [X]














FORM
10-QSB/A





Data
Storage Consulting Services, Inc.





TABLE OF
CONTENTS








PART
      I  FINANCIAL INFORMATIONItem
      1. Financial Statements for the period ended March 31,
2008Balance
      Sheet(Unaudited)
            4Statements of
      Operations (Unaudited)
            5Statements of
      Cash Flows (Unaudited)
            6Notes
      to Financial Statements
            8Item
      2. Management’s Discussion and Analysis and Plan of
    Operation
            10Item
      3. Controls and Procedures
            20PART
      II  OTHER INFORMATIONItem
      1. Legal Proceedings
            20Item
      2. Changes in Securities
            20Item
      3. Defaults Upon Senior Securities
            21Item
      4. Submission of Matters to a Vote of Security Holders
            21Item
      5. Other Information
            21Item
      6. Exhibits and Reports on Form 8-K
            21Signatures
            22







-
2 -





PART
I  FINANCIAL INFORMATION





References
in this document to "us," "we," or "Company" refer to Data Storage Consulting
Services, Inc.





ITEM
1.  FINANCIAL STATEMENTS













DATA
STORAGE CONSULTING SERVICES, INC.


(A
Development Stage Company)





FINANCIAL
STATEMENTS


(Unaudited)





Quarter
Ended March 31, 2008











-
3 -





DATA
STORAGE CONSULTING SERVICES, INC.


(A
Development Stage Company)


BALANCE
SHEETS


(Unaudited)





Dec.
      31, 2007
            
            
            Mar.
      31, 2008ASSETSCurrent
      assetsCash
            
            $
            135
            
            
            $
            58,002Total current
      assets
            
            
            135
            
            
            
            58,002Deferred
      offering costs
            
            
            10,465
            
            
            
            -Total
      Assets
            
            $
            10,600
            
            
            $
            58,002LIABILITIES& STOCKHOLDERS'
      EQUITYCurrent
      liabilitiesRelated
      party payables
            
            $
            2,300
            
            
            $
            1,605Total current
      liabilities
            
            
            2,300
            
            
            
            1,605Total
      Liabilities
            
            
            2,300
            
            
            
            1,605Stockholders'
      EquityPreferred
      stock, $.10 par value;1,000,000
      shares authorized;none
      issued and outstanding
            
            
            -
            
            
            
            -Common
      stock, $.001 par value;50,000,000
      shares authorized;8,525,000
      (2007) and 8,929,000 (2008)
            
            
            8,525
            
            
            
            8,929shares
      issued and outstandingAdditional
      paid in capital
            
            
            8,325
            
            
            
            64,836Deficit
      accumulated during the development stage
            
            
            (8,550
            )
            
            
            (16,918
            )Total
      Stockholders' Equity
            
            
            8,300
            
            
            
            56,847Total
      Liabilities and Stockholders' Equity
            
            $
            10,600
            
            
            $
            58,452




The
accompanying notes are an integral part of the financial
statements.





-
4 -





DATA
STORAGE CONSULTING SERVICES, INC.


(A
Development Stage Company)


STATEMENTS
OF OPERATIONS


(Unaudited)





Dec.
      12, 2006(Inception
      ofThree
      Months
            
            
            Three
      Months
            
            
            Dev.
      Stage)Ended
            
            
            Ended
            
            
            ThroughMar.
      31, 2007
            
            
            Mar.
      31, 2008
            
            
            Mar.
      31, 2008Revenue
            
            $
            -
            
            
            $
            -
            
            
            $
            -Operating
      expenses:General
      and administrative
            
            
            20
            
            
            
            8,368
            
            
            
            16,91820
            
            
            
            8,368
            
            
            
            16,918Income
      (loss) from operations
            
            
            (20
            )
            
            
            (8,368
            )
            
            
            (16,918
            )Other
      income (expense):
            
            
            -
            
            
            
            -
            
            
            
            -Income
      (loss) before provisionfor
      income taxes
            
            
            (20
            )
            
            
            (8,368
            )
            
            
            (16,918
            )Provision
      for income tax
            
            
            -
            
            
            
            -
            
            
            
            -Net
      income (loss)
            
            $
            (20
            )
            
            $
            (8,368
            )
            
            $
            (16,918
            )Net
      income (loss) per share(Basic
      and fully diluted)
            
            $
            (0.00
            )
            
            $
            (0.00
            )Weighted
      average number ofcommon
      shares outstanding
            
            
            8,466,667
            
            
            
            8,861,667




The
accompanying notes are an integral part of the financial
statements.





-
5 -








DATA
STORAGE CONSULTING SERVICES, INC.


(A
Development Stage Company)


STATEMENTS
OF CASH FLOWS


(Unaudited)








Dec.
      12, 2006(Inception
      ofThree
      Months
            
            
            Three
      Months
            
            
            Dev.
      Stage)Ended
            
            
            Ended
            
            
            ThroughMar.
      31, 2007
            
            
            Mar.
      31, 2008
            
            
            Mar.
      31, 2008Cash
      Flows From Operating Activities:Net
      income (loss)
            
            $
            (20
            )
            
            $
            (8,368
            )
            
            $
            (16,918
            )Adjustments
      to reconcile net loss tonet
      cash provided by (used for)operating
      activities:Related
      party payables
            
            
            
            
            
            
            (695
            )
            
            
            1,605Compensatory
      stock issuances
            
            
            
            
            
            
            
            
            
            
            8,450Net cash provided by (used
      for)operating
      activities
            
            
            (20
            )
            
            
            (9,063
            )
            
            
            (6,863
            )Cash
      Flows From Investing Activities:Deferred
      offering costs
            
            
            (5,000
            )
            
            
            (34,070
            )
            
            
            (44,535
            )Net
      cash provided by (used for)investing
      activities
            
            
            (5,000
            )
            
            
            (34,070
            )
            
            
            (44,535
            )





(Continued
On Following Page)





The
accompanying notes are an integral part of the financial
statements.





-
6 -








DATA
STORAGE CONSULTING SERVICES, INC.


(A
Development Stage Company)


STATEMENTS
OF CASH FLOWS


(Unaudited)





(Continued
From Previous Page)





Dec.
      12, 2006(Inception
      ofThree
      Months
            
            
            Three
      Months
            
            
            Dev.
      Stage)Ended
            
            
            Ended
            
            
            ThroughMar.
      31, 2007
            
            
            Mar.
      31, 2008
            
            
            Mar.
      31, 2008Cash
      Flows From Financing Activities:Sales
      of common stock
            
            
            5,000
            
            
            
            101,000
            
            
            
            108,500Paid
      in capital
            
            
            
            
            
            
            
            
            
            
            900Net cash provided by (used
      for)financing
      activities
            
            
            5,000
            
            
            
            101,000
            
            
            
            109,400Net
      Increase (Decrease) In Cash
            
            
            (20
            )
            
            
            57,867
            
            
            
            58,002Cash
      At The Beginning Of The Period
            
            
            900
            
            
            
            135
            
            
            
            -Cash
      At The End Of The Period
            
            $
            880
            
            
            $
            58,002
            
            
            $
            58,002Schedule Of Non-Cash
      Investing And Financing ActivitiesNoneSupplemental
      DisclosureCash
      paid for interest
            
            $
            -
            
            
            $
            -
            
            
            $
            -Cash
      paid for income taxes
            
            $
            -
            
            
            $
            -
            
            
            $
            -




The
accompanying notes are an integral part of the financial
statements.





-
7 -




DATA
STORAGE CONSULTING SERVICES, INC.


(A
Development Stage Company)


NOTES
TO FINANCIAL STATEMENTS


(Unaudited)





NOTE
1. ORGANIZATION, OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES:





Data
Storage Consulting Services, Inc. (the “Company”), was incorporated in the State
of Colorado on December 12, 2006. The Company was formed to provide data
management, consulting and storage services to clients.





Development stage
company





The
Company is currently in the development stage, and has commenced operations but
has not yet generated significant revenues.





Basis of
Presentation





The
accompanying unaudited financial statements have been prepared in accordance
with the instructions to Form 10-QSB and do not include all of the information
and disclosures required by generally accepted accounting principles for
complete financial statements. All adjustments which are, in the opinion of
management, necessary for a fair presentation of the results of operations for
the interim periods have been made and are of a recurring nature unless
otherwise disclosed herein. The results of operations for such interim periods
are not necessarily indicative of operations for a full year.





Cash and cash
equivalents





The
Company considers all highly liquid investments with an original maturity of
three months or less as cash equivalents.





Accounts
receivable





The
Company reviews accounts receivable periodically for collectability and
establishes an allowance for doubtful accounts and records bad debt expense when
deemed necessary. At March 31, 2008 the Company had no balance in its allowance
for doubtful accounts.





Property and
equipment





Property
and equipment are recorded at cost and depreciated under accelerated methods
over each item's estimated useful life, which is five years for vehicles,
computers and other items.





Revenue
recognition





Revenue
is recognized on an accrual basis after services have been performed under
contract terms, the event price to the client is fixed or determinable, and
collectibility is reasonably assured. Standard contract policy calls for partial
payment up front with balance due upon receipt of final billing.




-
8 -




DATA
STORAGE CONSULTING SERVICES, INC.


(A
Development Stage Company)


NOTES
TO FINANCIAL STATEMENTS


(Unaudited)








NOTE
1. ORGANIZATION, OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(Continued):





Use of
Estimates





The
preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect reported amounts of assets and liabilities and disclosure of contingent
assets and liabilities at the date of the financial statements and the reported
amounts of revenues and expenses during the reporting period. Actual results
could differ from those estimates.





Income
tax





The
Company accounts for income taxes under Statement of Financial Accounting
Standards No. 109 (“SFAS 109”). Under SFAS 109 deferred taxes are provided on a
liability method whereby deferred tax assets are recognized for deductible
temporary differences and operating loss carryforwards and deferred tax
liabilities are recognized for taxable temporary differences. Temporary
differences are the differences between the reported amounts of assets and
liabilities and their tax bases. Deferred tax assets are reduced by a valuation
allowance when, in the opinion of management, it is more likely than not that
some portion or all of the deferred tax assets will not be realized. Deferred
tax assets and liabilities are adjusted for the effects of changes in tax laws
and rates on the date of enactment.





Net income (loss) per
share





The net
income (loss) per share is computed by dividing the net income (loss) by the
weighted average number of shares of common outstanding. Warrants, stock
options, and common stock issuable upon the conversion of the Company's
preferred stock (if any), are not included in the computation if the effect
would be anti-dilutive and would increase the earnings or decrease loss per
share.





Financial
Instruments





The
carrying value of the Company’s financial instruments, including cash and cash
equivalents and accrued payables, as reported in the accompanying balance sheet,
approximates fair value.





-
9 -








ITEM
2.   MANAGEMENT’S DISCUSSION AND ANALYSIS AND PLAN OF
OPERATION





The
following discussion of our financial condition and results of operations should
be read in conjunction with, and is qualified in its entirety by, the
consolidated financial statements and notes thereto included in, Item 1 in this
Quarterly Report on Form 10-QSB/A. This item contains forward-looking statements
that involve risks and uncertainties. Actual results may differ materially from
those indicated in such forward-looking statements.





Forward-Looking
Statements




This Quarterly Report on Form 10-QSB/A and the documents
incorporated herein by reference contain forward-looking
statements.  Such forward-looking statements are based on current
expectations, estimates, and projections about our industry, management beliefs,
and certain assumptions made by our management.  Words such as
“anticipates”, “expects”, “intends”, “plans”, “believes”, “seeks”, “estimates”,
variations of such words, and similar expressions are intended to identify such
forward-looking statements.  These statements are not guarantees of
future performance and are subject to certain risks, uncertainties, and
assumptions that are difficult to predict; therefore, actual results may differ
materially from those expressed or forecasted in any such forward-looking
statements.  Unless required by law, we undertake no obligation to
update publicly any forward-looking statements, whether as a result of new
information, future events, or otherwise.  However, readers should
carefully review the risk factors set forth herein and in other reports and
documents that we file from time to time with the Securities and Exchange
Commission, particularly the Annual Reports on Form 10-KSB, Quarterly reports on
Form 10-QSB and any Current Reports on Form 8-K.




Risk
Factors





You
should carefully consider the risks and uncertainties described below and the
other information in this document before deciding to invest in shares of our
common stock.





The
occurrence of any of the following risks could materially and adversely affect
our business, financial condition and operating result. In this case, the
trading price of our common stock could decline and you might lose all or part
of your investment.





RISKS
ASSOCIATED WITH OUR COMPANY:





We
have a limited operating history.





We
began operations in December, 2006. Since the inception of our current business
operations, we have been engaged in organizational activities, including
developing a strategic operating plan, developing processing technology, and
raising private capital. We have no production facilities. Accordingly, we have
no relevant operating history upon which an evaluation of our performance and
future prospects can be made.





-
10 -





We
have had a history of losses.




We incurred
a net loss of $8,368 for the fiscal quarter ended March 31, 2008. From December
12, 2006 (date of inception) through March 31, 2008, we had a net loss of
$16,918. We may to continue to incur net losses for the foreseeable future as we
continue to further develop our business. Our ability to generate and sustain
significant additional revenues or achieve profitability will depend upon the
factors discussed elsewhere in this “Risk Factors” section. We cannot assure you
that we will achieve or sustain profitability or that our operating losses will
not increase in the future. If we do achieve profitability, we cannot be certain
that we can sustain or increase profitability on a quarterly or annual basis in
the future.





Because
we had incurred continuing operating losses, our accountants have expressed
doubts about our ability to continue as a going concern.




For the fiscal years ended December 31,
2006 and 2007, our accountants have expressed doubt about our ability to
continue as a going concern as a result of our continued net losses. Our ability
to achieve and maintain profitability and positive cash flow is dependent
upon:




♦
            our
      ability to locate clients who will purchase our products and use our
      services and products; and





♦
            our
      ability to generate significant
revenues.





Based upon current plans, we expect to
incur operating losses in future periods because we will be incurring expenses
and not generating sufficient revenues. We expect approximately $30,000 in
operating costs over the next twelve months. We cannot guarantee that we will be
successful in generating sufficient revenues or other funds in the future to
cover these operating costs. Failure to generate sufficient revenues will cause
us to go out of business.





Our
limited operating history makes it difficult for us to evaluate our future
business prospects and make decisions based on those estimates of our future
performance.





The concept for our business model was
developed in 2006. We have operated as a corporation but have a limited
operating history, based upon no revenues and a lack of profitability. These
factors make it difficult to evaluate our business on the basis of historical
operations. As a consequence, our past results may not be indicative of future
results. Although this is true for any business, it is particularly true for us
because of our limited operating history. Reliance on historical results may
hinder our ability to anticipate and timely adapt to increases or decreases in
sales, revenues or expenses. For example, if we overestimate our future sales
for a particular period or periods based on our historical growth rate, we may
increase our overhead and other operating expenses to a greater degree than we
would have if we correctly anticipated the lower sales level for that period and
reduced our controllable expenses accordingly. If we make poor budgetary
decisions as a result of unreliable historical data, we could be continue to
incur losses, which may result in a decline in our stock price.




We
have no experience as a public company.





We have never operated as a public
company. We have no experience in complying with the various rules and
regulations which are required of a public company. As a result, we may not be
able to operate successfully as a public company, even if our operations are
successful. We plan to comply with all of the various rules and regulations
which are required of a public company. However, if we cannot operate
successfully as a public company, your investment may be materially adversely
affected. Our inability to operate as a public company could be the basis of
your losing your entire investment in us.





-
11 -





We
are implementing a strategy to grow and expand our business, which is expensive
and may not generate increases in our revenues.





We intend to expand our business, and
we plan to incur expenses associated with our growth and expansion. Although we
recently raised funds through private offerings to implement our growth
strategy, these funds may not be adequate to offset all of the expenses we incur
in expanding our business. We will need to generate greater revenues to offset
expenses associated with our growth, and we may be unsuccessful in achieving
greater revenues, despite our attempts to grow our business. If our growth
strategies do not result in increased revenues, we may have to abandon our plans
for further growth or may even reduce the current size of our
operations.




We may need to raise additional
funds, and these funds may not be available when we need
them.




Based on our current plans, we have
adjusted our operating expenses so that cash generated from operations and from
working capital financing is expected to be sufficient for the foreseeable
future to fund our operations at our currently forecasted levels. This has not
always been the case, since we have had a history of losses. To try to operate
at a break-even level based upon our current level of anticipated business
activity, we believe that we must generate approximately $30,000 in revenue per
year. However, if our forecasts are inaccurate, we will need to raise additional
funds. On the other hand, we may choose to scale back our operations to operate
at break-even with a smaller level of business activity, while adjusting our
overhead to meet the revenue from current operations. In addition, we expect
that we will need to raise additional funds if we decide to pursue more rapid
expansion, the development of new or enhanced services and products, appropriate
responses to competitive pressures, or the acquisition of complementary
businesses or technologies, or if we must respond to unanticipated events that
require us to make additional investments. . We cannot assure that additional
financing will be available when needed on favorable terms, or at all. If these
funds are not available when we need them, then we may need to change our
business strategy and reduce our rate of growth.





We
must effectively manage the growth of our operations, or we may outgrow our
current infrastructure.





As of March 31, 2008, we had one
employee, our President. If we experience rapid growth of our operations, we
could see a backlog of client orders. We can resolve these capacity issues by
hiring additional personnel and upgrading our infrastructure. However, we cannot
guarantee that sufficient additional personnel will be available or that we will
find suitable technology to aid our growth. In any case, we will continue
pursuing additional sales growth for our company. Expanding our infrastructure
will be expensive, and will require us to train our workforce, and improve our
financial and managerial controls to keep pace with the growth of our
operations.




Because
we are small and do not have much capital, we must limit our operations. A
company in our industry with limited operations has a smaller opportunity to be
successful.





Because we are small and do not have
much capital, we must limit our operations. We must limit our operations to
providing a limited range of products and services as the only area in which we
operate. Because we may have to limit our operations, we may not generate
sufficient sales to make a profit. If we do not make a profit, we may have to
suspend or cease operations.





Because
our current officers and directors are involved with other businesses, some of
which are in the same industry, the manner in which we operate may create the
possibility of a conflict of interest.





-
12 -





All of our officers and directors are
also involved with other businesses, some of which are other businesses in the
same industry. Messrs. Hanson, and Hartman are involved in other businesses in
the same industry. Messrs. Ross and Neil Bernstein are involved in other
business activities not related to the same industry but which require their
time and attention.  All of these other arrangements could create
conflict of interest with respect to our operations. Each of our officers and
directors is aware of their responsibilities with respect to corporate
opportunities and plans to operate our Company in such a manner as to minimize
the effect of any conflict of interest. Each officer and director has agreed to
contract with the Company on the same or better terms and conditions than each
would with unaffiliated third parties. Each of these officers and directors will
use their best judgments to resolve all potential conflicts. We cannot guarantee
that any potential conflicts can be avoided.





Our
success will be dependent upon our management.





Our success will be dependent upon the
decision making of our directors and executive officers. These individuals
intend to commit as much time as necessary to our business, but this commitment
is no assurance of success. The loss of any or all of these individuals,
particularly Messrs. Ross and Neil Bernstein, could have a material, adverse
impact on our operations. We have no written employment agreements with any
officers and directors, including Messrs. Ross and Neil Bernstein. We have not
obtained key man life insurance on the lives of any of these
individuals.





There
are risks associated with introducing new products. If we are not successful
with those product introductions, we will not realize on our investment in
developing those products.




We will continue to evaluate
opportunities to develop product solutions, and when we choose to develop such
products we will incur expenses in those development efforts. Market acceptance
of new products may be slow or less than we expect. Our products also may not
perform in a manner that is required by the market, or our competitors may be
more effective in reaching the market segments we are targeting with these
products. Slow market acceptance of these products will delay or eliminate our
ability to recover our investment in these products. During any period that we
unsuccessfully seek to market these products, we will also incur marketing costs
without corresponding revenue.




Our
ability to grow our business depends on relationships with others. We have no
established relationships at this time.  We may never develop such
relationships. Further, if we were to lose those relationships, we could lose
our ability to sell certain of our products.




Most of our revenue and a majority of
our gross profit is expected to come from selling integrated solutions,
consisting of combinations of hardware and software products produced by others.
While our relationships will change from time to time, we must rely upon
technology partners to augment and enhance the products we plan to sell. At the
present time, we do not have any technology partners and cannot guarantee we
will ever develop any such partners. If we do develop such partners, we risk
that a given technology partner will change its marketing strategy and
de-emphasize its use of marketing partners such as us. Our ability to generate
revenue from reselling  its products would diminish and our operations
and results of operations would be materially and adversely
affected.





We
are a relatively small company with limited resources compared to some of our
current and potential competitors, which may hinder our ability to compete
effectively.





-
13 -






Some of our current and potential
competitors have longer operating histories, significantly greater resources,
broader name recognition, and a larger installed base of clients than we have.
As a result, these competitors may have greater credibility with our existing
and potential clients. They also may be able to adopt more aggressive pricing
policies and devote greater resources to the development, promotion and sale of
their products than we can to ours, which would allow them to respond more
quickly than us to new or emerging technologies or changes in client
requirements. In addition, some of our current and potential competitors have
already established supplier or joint development relationships with decision
makers at our potential clients.





We
may be unable to hire and retain key personnel.




Our future success depends on our
ability to attract qualified storage technology and geospatial imagery
personnel. We may be unable to attract these necessary personnel. If we fail to
attract or retain skilled employees, or if a key employee fails to perform in
his or her current position, we may be unable to generate sufficient revenue to
offset our operating costs.





We
may need to substantially invest in marketing efforts in order to grow our
business, which will be expensive.





In order to grow our business, we will
need to develop and maintain widespread recognition and acceptance of our
company, our business model, our services and our products. We have not
presented our service and product offering to the potential market. We plan to
rely primarily on word of mouth from our existing contacts we develop personally
through industry events to promote and market ourselves. In order to
successfully grow our company, we may need to significantly increase our
financial commitment to creating awareness and acceptance of our company among
retailers, which would be expensive. To date, marketing and advertising expenses
have been negligible. If we fail to successfully market and promote our
business, we could lose potential clients to our competitors, or our growth
efforts may be ineffective. If we incur significant expenses promoting and
marketing ourselves, it could delay or completely forestall our
profitability.





Our
business is not diversified, which could result in significant fluctuations in
our operating results.





All of our business is involved in the
marketing of selling integrated data storage solutions, and, accordingly, is
dependent upon trends in the sector. Downturns in the integrated data storage
solutions sector could have a material adverse effect on our business. A
downturn in the integrated data storage solutions sector may reduce our stock
price, even if our business is successful.




Our
directors have the ability to significantly influence any matters to be decided
by the stockholders, which may prevent or delay a change in control of our
company.





The current members of our Board of
Directors beneficially own, in the aggregate, approximately 90% of our common
stock, on a fully diluted basis. As a result, if they choose to vote in concert,
our directors are collectively able to significantly influence the outcome of
any corporate matters submitted to our stockholders for approval, including any
transaction that might cause a change in control, such as a merger or
acquisition. It is unlikely that stockholders in favor of a matter, which is
opposed by the Board of Directors, would be able to obtain the number of votes
necessary to overrule the vote of the Board of Directors. Further, the control
by the directors means that they may make decisions for us with which you may
disagree or that you may feel is not in our best interests.





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14 -





Risks Associated with our
Stock:





Buying
low-priced penny stocks is very risky and speculative.





The shares are defined as a penny stock
under the Securities and Exchange Act of 1934, and rules of the Commission. The
Exchange Act and such penny stock rules generally impose additional sales
practice and disclosure requirements on broker-dealers who sell our securities
to persons other than certain accredited investors who are, generally,
institutions with assets in excess of $5,000,000 or individuals with net worth
in excess of $1,000,000 or annual income exceeding $200,000, or $300,000 jointly
with spouse, or in transactions not recommended by the broker-dealer. For
transactions covered by the penny stock rules, a broker-dealer must make a
suitability determination for each purchaser and receive the purchaser's written
agreement prior to the sale. In addition, the broker-dealer must make certain
mandated disclosures in penny stock transactions, including the actual sale or
purchase price and actual bid and offer quotations, the compensation to be
received by the broker-dealer and certain associated persons, and deliver
certain disclosures required by the Commission. Consequently, the penny stock
rules may affect the ability of broker-dealers to make a market in or trade our
common stock and may also affect your ability to resell any shares you may
purchase in this offering in the public markets.





Our common stock currently has no
trading market and there is no guarantee a trading market will
ever develop for our securities.





There is presently no demand for our
common stock. There is presently no public market for our shares. While we do
intend to apply for quotation in the Over-the-Counter Bulletin Board, we cannot
guarantee that our application will be approved and our stock listed and quoted
for sale. If no market is ever developed for our common stock, it will be
difficult for you to sell any shares you purchase in this offering. In such a
case, you may find that you are unable to achieve any benefit from your
investment or liquidate your shares without considerable delay, if at all. In
addition, if we fail to have our common stock quoted on a public trading market,
your common stock will not have a quantifiable value and it may be difficult, if
not impossible, to ever resell your shares, resulting in an inability to realize
any value from your investment.




The
over-the-counter market for stock such as ours has had extreme price and volume
fluctuations.





The securities of companies such as
ours have historically experienced extreme price and volume fluctuations during
certain periods. These broad market fluctuations and other factors, such as new
product developments and trends in the our industry and in the investment
markets generally, as well as economic conditions and quarterly variations in
our operational results, may have a negative effect on the market price of our
common stock.





All
of our common stock is restricted but could become eligible for resale under
Rule 144; this could cause the market price of our common stock to drop
significantly, even if our business is doing well.





Of our total outstanding shares,
8,525,000, or approximately 96%, are restricted from immediate resale but may be
sold into the market subject to volume and manner of sale limitations under Rule
144 beginning in December, 2007. This could cause the market price of our common
stock to drop significantly, even if our business is doing well. We have
outstanding 8,929,000 shares at May 1, 2008. This includes the common shares we
sold in our recent public offering, which may be resold in the public market
immediately.





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15 -





As restrictions on resale end, the
market price of our stock could drop significantly if the holders of restricted
shares sell them or are perceived by the market as intending to sell
them.





We
do not expect to pay dividends on common stock.





We have not paid any cash dividends
with respect to our common stock, and it is unlikely that we will pay any
dividends on our common stock in the foreseeable future. Earnings, if any, that
we may realize will be retained in the business for further development and
expansion.




Overview
and History




Data
Storage Consulting Services, Inc. sells data storage protection and consulting
services to small and medium businesses. We currently operate exclusively
in Colorado. We market and sell our products and services to directly to
business end users. We have a limited history of operations.





On March
7, 2008, we closed our registered public offering. We sold a total of 404,000
common shares at a price of $.25 per share, for a total of
$101,000.





Our
auditors have expressed doubts about our ability to continue as a going concern.
Our headquarters are located at 13990 Braun Road, Golden, CO 80401. Our phone
number at our headquarters is (303)883-9334. Our fiscal year end is December
31.





Results
of Operations





The
following discussion involves our results of operations for the quarters ending
March 31, 2008 and March 31, 2007.





For the
fiscal quarters ended March 31, 2008 and March 31, 2007 we had no
revenues.





Our operating expenses consisted solely
of general and administrative expenses for all relevant periods. General and
administrative expenses for the fiscal quarter ended March 31, 2008 was $8,368.
General and administrative expenses for the fiscal quarter ended March 31, 2007
was $20. The major components of these general and administrative expenses were
payments to independent contractors, professional fees, and prepaid expenses.
While our general and administrative expenses will continue to be our largest
expense item, we believe that this expense will stabilize in the coming fiscal
year as we reduce independent contractors, professional fees, and prepaid
expenses.





We had a net loss of $8,368 for the
fiscal quarter ended March 31, 2008, compared to a net loss of $20 for the
fiscal quarter ended March 31, 2007.





We believe that overhead cost in
current operations should remain fairly constant as revenues develop. Each
dollar of revenue will have minimal offsetting overhead cost. If we can develop
sufficient revenues, we could be profitable by the end of fiscal year
2008.




Liquidity
and Capital Resources





As of
March 31, 2008, we had cash or cash equivalents of $58,002.





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16 -





Net cash
used for operating activities was $9,063 for the period ended March 31, 2008,
compared to cash used for operating activities of $20 for the period ended March
31, 2007. We anticipate that overhead costs in current operations will remain
fairly constant as sales improve.





Cash
flows used for investing activities were was $34,070 for the period ended March
31, 2008, compared to cash used for investing activities of $5,000 for the
period ended March 31, 2007. All cash flows were related to defered offering
costs.





Cash
flows provided by financing activities were was $101,000 for the period ended
March 31, 2008, compared to cash used for investing activities of $5,000 for the
period ended March 31, 2007.





We
believe that our recent public offering will provide sufficient capital in the
short term for our current level of operations. This is because we believe that
we can attract sufficient additional product sales and services within our
present organizational structure and resources to become profitable in our
operations. Additional resources will be needed to expand into additional
locations, which we have no plans to do at this time.





Otherwise,
we do not anticipate needing to raise additional capital resources in the next
three months.





Until
current operations become cash flow positive, our officers and directors may be
required to fund the operations to continue the business. Other than our cash,
at this time we have no other resources on which to get funds if needed without
their assistance.





Our
principle source of liquidity is our operations. Our variation in revenues is
based upon the level of our sales activity and will account for the difference
between a profit and a loss. Also business activity is closely tied to the
economy of Denver and the U.S. economy. A slow down in interior design work will
have a negative impact to our business. In any case, we try to operate with
minimal overhead. Our primary activity will be to seek to expand the interior
design projects and, consequently, our sales. If we succeed in expanding our
client base and generating sufficient sales, we will become profitable. We
cannot guarantee that this will ever occur. Our plan is to build our company in
any manner which will be successful.





Plan
of Operation





Our plan
for the nest twelve is to operate at a profit or at break even. Our plan is to
attract sufficient additional product sales and services within our present
organizational structure and resources to become profitable in our
operations.





Currently,
we are conducting business in only one location in the Denver Metropolitan area.
We have no plans to expand into other locations or areas. We believe that we can
achieve profitability as we are presently organized with sufficient
business.





Other
than the shares offered by our recent public offering, no other source of
capital has been identified or sought.





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17 -





If we are
not successful in our operations we will be faced with several
options:





1.
            Cease
      operations and go out of business;





2.
            Continue
      to seek alternative and acceptable sources of
  capital;





3.
            Bring
      in additional capital that may result in a change of control;
      or




4.
            Identify
      a candidate for acquisition that seeks access to the public marketplace
      and its financing sources





Currently,
we have sufficient capital to implement our proposed business operations or to
sustain them for the next twelve months. If we can become profitable, we could
operate at our present level indefinitely.





With the
proceeds of our recent public offering, we believe that we can adjust our sales
and expenses to operate for at least one year before we become profitable or go
out of business.





To date,
we have never had any discussions with any possible acquisition candidate nor
have we any intention of doing so.





Proposed Milestones to Implement Business
Operations




At the
present time, we are operating from one location in the Denver Metropolitan
area. Our plan is to make our operation profitable by the end of our next fiscal
year. We estimate that we must generate approximately $3,000 in sales per month
to be profitable.





We
believe that we can be profitable or at break even by the end of the current
fiscal year, assuming sufficient sales. Based upon our current plans, we have
adjusted our operating expenses so that cash generated from operations and from
working capital financing is expected to be sufficient for the foreseeable
future to fund our operations at our currently forecasted levels. To try to
operate at a break-even level based upon our current level of anticipated
business activity, we believe that we must generate approximately $36,000 in
revenue per year. However, if our forecasts are inaccurate, we will need to
raise additional funds. On the other hand, we may choose to scale back our
operations to operate at break-even with a smaller level of business activity,
while adjusting our overhead to meet the revenue from current operations . In
addition, we expect that we will need to raise additional funds if we decide to
pursue more rapid expansion, the development of new or enhanced services and
products, appropriate responses to competitive pressures, or the acquisition of
complementary businesses or technologies, or if we must respond to unanticipated
events that require us to make additional investments. We cannot assure that
additional financing will be available when needed on favorable terms, or at
all.





We expect
to incur operating losses in future periods because we will be incurring
expenses and not generating sufficient revenues. We expect approximately $36,000
in operating costs over the next twelve months. We cannot guarantee that we will
be successful in generating sufficient revenues or other funds in the future to
cover these operating costs. Failure to generate sufficient revenues or
additional financing when needed could cause us to go out of
business







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18 -





No
commitments to provide additional funds have been made by management or current
shareholders. There is no assurance that additional funds will be made available
to us on terms that will be acceptable, or at all, if and when needed. We expect
to continue to generate and increase sales, but there can be no assurance we
will generate sales sufficient to continue operations or to expand.





We
also are planning to rely on the possibility of referrals from clients and will
strive to satisfy our clients. We believe that referrals will be an effective
form of advertising because of the quality of service that we bring to clients.
We believe that satisfied clients will bring more and repeat
clients.





In the
next 12 months, we do not intend to spend any material funds on research and
development and do not intend to purchase any large equipment.





Off-Balance
Sheet Arrangements





We have
no off-balance sheet arrangements with any party.





Critical
Accounting Policies





Our
discussion and analysis of results of operations and financial condition are
based upon our consolidated financial statements, which have been prepared in
accordance with accounting principles generally accepted in the United States of
America. The preparation of these consolidated financial statements requires us
to make estimates and judgments that affect the reported amounts of assets,
liabilities, revenues and expenses, and related disclosure of contingent assets
and liabilities. We evaluate our estimates on an ongoing basis, including those
related to provisions for uncollectible accounts receivable, inventories,
valuation of intangible assets and contingencies and litigation. We base our
estimates on historical experience and on various other assumptions that are
believed to be reasonable under the circumstances, the results of which form the
basis for making judgments about the carrying values of assets and liabilities
that are not readily apparent from other sources. Actual results may differ from
these estimates under different assumptions or conditions.





The
accounting policies that we follow are set forth in Note 2 to our financial
statements as included in this document. These accounting policies conform to
accounting principles generally accepted in the United States, and have been
consistently applied in the preparation of the financial
statements.




Recently
Issued Accounting Pronouncements




In
December 2004, the Financial Accounting Standards Board issued Statement of
Financial Accounting Standards ("SFAS") No. 123R "Share Based Payment." This
statement is a revision of SFAS No. 123, "Accounting for Stock-Based
Compensation" and supersedes APB Opinion No. 25, Accounting for Stock Issued to
Employees, and its related implementation guidance. SFAS No. 123R addresses all
forms of share based payment ("SBP") awards including shares issued under
employee stock purchase plans, stock options, restricted stock and stock
appreciation rights. Under SFAS No. 123R, SBP awards result in a cost that will
be measured at fair value on the awards' grant date, based on the estimated
number of awards that are expected to vest. This statement is effective for
public entities that file as small business issuers, as of the beginning of the
first interim or annual reporting period that begins after December 15, 2005. We
adopted this pronouncement during the first quarter of 2005.





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19 -





In
December 2004, the FASB issued SFAS No. 153, Exchanges of Non-monetary Assets -
An Amendment of APB Opinion No. 29. The amendments made by SFAS No. 153 are
based on the principle that exchanges of non-monetary assets should be measured
based on the fair value of the assets exchanged. Further, the amendments
eliminate the narrow exception for non-monetary exchanges of similar productive
assets and replace it with a broader exception for exchanges of non-monetary
assets that do not have "commercial substance." SFAS No. 153 is effective for
non-monetary asset exchanges occurring in fiscal periods beginning after June
15, 2005. The adoption of SFAS No. 153 on its effective date did not have a
material effect on our consolidated financial statements.





In March
2005, the FASB issued Financial Interpretation No. 47, "Accounting for
Conditional Asset Retirement Obligations - an Interpretation of FASB Statement
No. 143", which specifies the accounting treatment for obligations associated
with the sale or disposal of an asset when there are legal requirements
attendant to such a disposition. We adopted this pronouncement in 2005, as
required, but there was no impact as there are no legal obligations associated
with the future sale or disposal of any assets.





In May
2005, the FASB issued SFAS No. 154, "Accounting Changes and Error Corrections —
A Replacement of APB Opinion No. 20 and SFAS Statement No. 3". SFAS No. 154
changes the requirements for the accounting and reporting of a change in
accounting principle by requiring retrospective application to prior periods'
financial statements of the change in accounting principle, unless it is
impracticable to do so. SFAS No. 154 is effective for accounting changes and
corrections of errors made in fiscal years beginning after December 15, 2005. We
do not expect the adoption of SFAS No. 154 to have any impact on our
consolidated financial statements.





ITEM
3.  CONTROLS AND PROCEDURES





As of the
end of the period covered by this report, based on an evaluation of our
disclosure controls and procedures (as defined in Rules 13a -15(e) and
15(d)-15(e) under the Exchange Act), our Chief Executive Officer and the Chief
Financial Officer has concluded that our disclosure controls and procedures are
effective to ensure that information required to be disclosed by us in our
Exchange Act reports is recorded, processed, summarized, and reported within the
applicable time periods specified by the SEC’s rules and forms.





There
were no changes in our internal controls over financial reporting that occurred
during our most recent fiscal quarter that have materially affected, or are
reasonably likely to materially affect, our internal control over financial
reporting.





PART
II.  OTHER INFORMATION





ITEM
1.  LEGAL PROCEEDINGS





There are
no legal proceedings, to which we are a party, which could have a material
adverse effect on our business, financial condition or operating
results.





ITEM
2.  CHANGES IN SECURITIES


None





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20-





ITEM
3.  DEFAULTS UPON SENIOR SECURITIES


None





ITEM
4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS


None





ITEM
5.  OTHER INFORMATION


None





ITEM
6.  EXHIBITS AND REPORTS ON FORM 8-K








ExhibitNumber
            
            Description3.1*
            
            Articles
      of Incorporation3.2*
            
            Bylaws31.1
            
            Certification
      of CEO pursuant to Sec. 30231.2
            
            Certification
      of CFO pursuant to Sec. 30232.1
            
            Certification
      of CEO pursuant to Sec. 90632.2
            
            Certification
      of CFO pursuant to Sec. 906




*
Previously filed under cover of Form SB-2 on July 26, 2007.





Reports on Form
8-K





We filed
one report under cover of Form 8-K on March 10, 2008, relating to closing of our
public offering and our transfer agent.




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SIGNATURES





Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned thereunto
duly authorized on July 24, 2008.











Data
      Storage Consulting Services, Inc.By:
            /s/ 
      Ross BernsteinRoss
      Bernstein
              President
      and Chief Executive Officer







By:
            /s/ 
      Neil BernsteinNeil
      BernsteinSecretary-Treasurer,
      Principal Accounting Officer, and Financial
  Officer




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