Actually, I hold DTL as well and their recent webcast gives a very good view of this.
They separate their infrastructure into 4 segments. Server/storage, network, end-user devices and one more, which evades me.
The traditional server/storage segment is declining, but very slowly. Network related appliances (although they don't deal with them a lot) are still increasing, but not as much as the end-user devices, which are growing very strongly. This is a result of:
1) increased demand for more complex networks as you integrate on-premise users with some cloud technologies
2) increased demand for more devices per user (e.g. laptop and phone/tablet), and higher turnover of devices
Sure, the cloud is growing, but so are other segments. Add that to the fact that DDR are showing their strength in adding suppliers and I think it justifies the decision. They may not need the space at this very moment, but having the new facility so close allows the transition to be somewhat seamless - great move by management IMO.
DDR Price at posting:
$1.91 Sentiment: Buy Disclosure: Held
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