With continuous growth in mobile technology and ubiquitous computing, the demand for more storage in mobile devices is also on the rise. Internet Advanced Technology Attachment (iATA), a virtual storage system that positioned itself as one of the feasible solutions to solve the mobile device's storage limitation problem. In existing iATA implementation, the storage space depends on the unused partition space on server and it is predefined in server, and does not provide any varying storage control, causing an inelastic storage management. In this paper, we proposed an improved solution to iATA mounting on disk image based loop device, alongside with designing a storage management mechanism for iATA system that allow us to increase the flexibility and variability on this virtual storage system.