Dell Technologies is sharpening its focus on providing artificial intelligence (AI) and generative AI (GenAI) solutions in alignment with global trends and customer needs.
Reinventing is both an opportunity and a challenge given Dell’s legacy, says Sanchit Vir Gogia, founder and CEO of Greyhound Research. He explains that it’s an opportunity because it’s easy to get customers to trust new offerings, build on existing ecosystem partners, and use the piles of cash in the bank to acquire new companies and talent. However, it’s a significant challenge, for it’s always challenging to steer a large ship, especially when it’s a publicly-listed firm and onboard existing talent with a brand new vision.
Gogia believes that the Dell AI Factory with Nvidia does well to build on Dell’s hardware expertise on top of Nvidia’s GPUs and AI software. “What makes this unique is Dell’s end-to-end hardware expertise spanning computing, networking, storage, and software,” he says but adds that the “AI-on-device” opportunity will be up for grabs shortly, and the winner will be the one that allows the most energy-efficient and ethical use of AI on the device.
Gogia underscores that, unlike its peers, Dell is still a founder-run firm that is deeply passionate about AI and has evolved the company many times in the past to keep it relevant. “Michael Dell made a bold move in the past when he took the company private to rejig the Dell, EMC and VMware portfolios and be better prepared to capture a new market opportunity. With a precedent as tall as that, it’s hard to imagine Michael not making yet another bold move to make a mark in the world of AI,” says Gogia.
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Additional comments by Greyhound Research analyst:
With a legacy as profound as Dell’s, reinventing is both an opportunity and a challenge. This is an opportunity because it’s easy to get customers to trust new offerings, build on existing ecosystem partners, and use the piles of cash in the bank to acquire new companies and talent. However, it’s a challenge, for it’s always challenging to steer a large ship, especially when it’s a publicly listed firm and onboard existing talent with a brand new vision. Another challenge for Dell is that its current server and personal computing offerings do not lend themselves naturally to the world of Artificial Intelligence.
To Dell’s credit, they understand both the opportunity and challenge well and, hence, have embarked on a journey to use ecosystem partners like Nvidia to stamp relevance in the AI sphere. The Dell AI Factory with Nvidia does well to build on Dell’s hardware expertise on top of Nvidia’s GPUs and AI software. What makes this unique is Dell’s end-to-end hardware expertise spanning computing, networking, storage, and software.
We at Greyhound Research believe the “AI-on-device” opportunity will be up for grabs shortly, and the winner will be the one that allows the most energy-efficient and ethical use of AI on the device. This includes access to AI use cases on the device without an active internet connection. While Qualcomm has a formidable presence in the space, Dell also has deep experience on the topic and can be a strong contender in the domain. However, this debate is still theoretical, and it assumes that the winner will also use this energy-efficient architecture to power new form factors using spatial computing.
Does Dell have what it takes to participate in the AI opportunity? The answer, hands down, is a simple yes. But this assumes a lot that has been explained and reasoned in the paragraphs above.
However, we need to consider that, unlike its peers, Dell Technologies is still a founder-run firm, is deeply passionate about the topic and has evolved many times to remain relevant. Michael Dell’s success can be gauged by Dell Technologies hitting a record high in May 2024 when the company started talking about participating in the GenAI market. Such is the pull of both Dell Technologies and Michael Dell himself. A jog down memory lane also reminds us old timers about when Michael Dell took the company private (in 2013) to architect the most significant technology deal in history to rejig portfolio amongst Dell, EMC and VMware. Dell Technologies went public again in 2018. With a precedent as tall as that, it’s hard to imagine Michael not making yet another bold move to make a mark in AI.
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