DXN needs to rethink what they are good at and that is turnkey edge modules.
The Syd, Mel and lessor extent, Tas DC's are a money pit and their offering is far worse than the top tier providers. Any large company is looking for a rock solid colo provider to house their critical information and we all know everyone is choosing NXT, Equinix, iSeek and many other better options. Even if they had the worlds best DC's, the company just doesnt stack up as one that 100% will be around in 10 years.
Having said that, i believe if they refined their model and offered to manage and or operate the modular units they build (under lease), they would be better off. If they wanted to still pursue the "Colo" play, they should be looking at smaller edge locations (Think local councils) and offer something to support the local industry, lower latency and many other advantages. The big boys like NXT arent here and neither are most of the competiton.
Food for thought
DXN Price at posting:
1.4¢ Sentiment: Sell Disclosure: Not Held
