DOH! That could explain a lot, seiler. FIC is located in a brick shack (well, building; but shack is more pejorative when people are frustrated), literally just down the street from me on Park Blvd. IF (and that's a big if, 'cuz I don't know for certain) DH is located in that building on Park, it would definitely help explain 1.) how DH can keep prices so low and 2.) the lack of backup connectivity; hence, outages. That location, to the best of my knowledge, is not multi-homed, but uses Palo Alto municipal fiber to connect to a REAL datacenter downtown, called PAIX.
To the extent my understanding is accurate, the FIC building would be a great incubator site, but not at all sufficient for sustained growth.
The ARIN IP address range indicates a nonzero chance that DH is in the Fiber Internet Center building, but IP addresses are, of course, not geographically constrained.
FIC's Network Status Tools may provide a little more visibility into backend operations.
If anyone can show me where the FIC Shack connects to any other top tier provider, then I will happily amend my comments; but to the best of my local knowledge, there is one single solitary big, fat, pipe POINT OF FAILURE between the FIC and PAIX, downtown. Once you get downtown, sure, you're connected to The Largest Neutral Internet Exchange Point in the World.
However, if that single superfast strand of glass goes down, suffers congestion, or routing failures, then any services located in the little brick shack go down with it!
Now, with all that speculation spawned ... if this is even part of the problem ... and if customers all like DH and want DH to succeed ... then would customers be willing to help foot the bill to get them into a super reliable peering location INSIDE PAIX or other hyper-connected data center?
This is the tough part about building any company, but especially networking companies. Everyone wants super low prices, but they also want super high reliability. Problem is, that's generally an inverse relationship. Having built a network or three in my day, my tendency is to cheer on the DH team and hope they can find a way to keep the New Dream alive. Having also succeeded at times and failed at others, I also know that the outcome is never guaranteed.
In the end, the one thing that determines success or failure is CUSTOMERS. So listening to them and then responding is the wisest thing any growing company can ever do.