Some fair points there though still missing the point which may be my fault partially...
Yes Colocation and Tier 3/4 certification from the Uptime Institue is very different from what we would call Public Clouds - AWS, Azure etc with strict ASD and IRAP cert etc.
So your point is valid to a small degree - I think what I was trying to get at with them is that is where many of our customers are moving and fast it is not an infinite market and there’s is very stiff competition in there - in reference to defence etc. and security no way many of the gov departments are either still running on prem, public cloud or hybrid combinations - I don’t know how many would colocate but suspect not many.
In terms of colo there are well over 100 colo
DCs in Australia now and growing - Next, Equinix, Global Switch, Vocus, NTT and on and on - Telstra are moving away from colo - these are all trying to grow and also have economies of scale and they are all competition for DXN - with $16 mill in the bank...
This is not a new game, it is mature now.
So I guess to round off my point, DXN are in the right space but very very late to the party. Could they sell some space? Sure, I hope they do...but at this stage it is very much a “gunna” type of business and for that reason I will watch from the sidelines with interest - if they can price up some fast sales this may have something, and plenty of time to invest - but far too risky for me at this stage.
