In Lync Server, the Director role is capable of providing a subset of Front End web services to the endpoints. A primary use for this scenario is the Client Version filter used to check the version of software endpoints sign-in with and potentially block older or unwanted versions from successfully connecting. In some cases, the filter is used to provide the client with a link to a web page or automatically provide an update for the software.
The device update service is another web service that can be deployed on a Director. When the DNS records for client updates points to a Director, the phone endpoints can download firmware updates from there instead of a Front End Server. Depending on the workload of Front End Servers in the environment, it might be beneficial to use a Director for these functions.
The Director role cannot be collocated with any other server role in Lync Server. It must be installed on a server with no other roles to be fully supported by Microsoft.