Digital Realty has teamed up with ComputeNext to offer the Digital Realty Global Cloud Marketplace (GCM). We asked our lead analyst Mike Spieldenner for comment and got an interesting take. Read on and be as informed as you are entertained!

With the news that they have launched cloud partnership, DLR is following Equinix’s footprints in the sand is all. Not a bad way to go, but one must be careful.

Many naysayers have viewed DLR as an old west gunfighter, clad in leather and armed with a half-expended six-shooter. What they haven’t realized is that when the stage lights flicked off, DLR changed their regalia for liquid body armor and carrying a polymer-framed CZ-PO9 pistol and gleamed bright when the lights returned. Well, perhaps that’s a bit of an over-dramatization; however, it is fair to say that DLR has changed.

The REIT has realized that providing power and space was a great business platform, but they were missing out on the revenue per square foot that a retail data center operator like Equinix was getting. So, DLR decided to mix it up a bit. They began by simply starting to sell into the retail space and then started to add to their already creative team personnel that were capable of creating an ecosystem that could support their expanded focus. Sound familiar? Well, there is nothing wrong with following a trend that is successful. Thousands of companies throughout history of done the same and become more successful than their mentors.

A data center is only as powerful as its network connections. You can have as much power and space as you want, but if you cannot get reliable, diverse and excellent connectivity then you are just a building… not a data center!

So DLR is now building a ladder to the heavens, straight through “the clouds” above. A natural direction that we’d all like to ascend!

Funny thing is that one of the top retail data center operators has realized that there are some great tax benefits that go with being a REIT. Perhaps because they currently lease most of their facilities, they too will follow a mentor!

The bottom line is that DLR itself is not offering any new services. They are merely offering a way for tenants of DLR to buy cloud services from a vetted vendor resource.

Feedback welcome. Email us with your comments and/or your take on DLR.

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