NEW YORK (TheStreet) -- Paul Lidskey, CEO of Datalink (DTLK) , acknowledged that his stock has had a rocky ride in 2014. Despite shares climbing 19% year to date, the stock has endured major swings. But that's mainly due to volatility in the corporate IT spending budget.
Hopefully corporate IT spending smooths out a bit in 2015, he said, so that Datalink stock and others in the same industry can see a more consistent flow of revenue.
Within that IT space, Lidskey said his company is focused on helping customers move away from hardware and transforming "IT operations into service organizations." In other words, Datalink is focused on helping its customers participate in cloud computing and improving their data center efficiency.
Some companies want to take advantage of the cloud, but don't want to be exposed to public servers and potential security breaches. For that reason, Datalink can set up a private cloud network, Lidskey added.
TheStreet's Gregg Greenberg asked about the company's storage business, which has seen declining margins in recent years.
"Margins have been declining," Lidskey acknowledged, but that's just part of the business. Companies in the storage business need to recognize this trend and address it, rather than ignore it.
For Datalink's part, the company is focused on selling its customers additional services. The services tend to have higher gross margins, he explained, which will help offset some of the margin compression from the storage business.