Dell bets big on on-premise AI, targets $295 billion market by 2027

Agentic AI technologies will simplify complex tasks like software development, lowering barriers to high-skill roles and democratizing access—an advantage that could significantly benefit nations with large, young populations, such as India

Dell Technologies is charting a firm course toward on-premise artificial intelligence (AI) deployments, emphasizing that processing data locally rather than transferring it to public cloud environments offers superior cost efficiency, security, and regulatory compliance. The strategy is part of Dell’s broader AI roadmap as the global market accelerates toward a projected $295 billion valuation by 2027—more than doubling from $124 billion just 18 months ago.

Dell’s five-pronged AI strategy

Speaking at Dell Technologies World in Las Vegas, Vivek Mohindra, Senior Vice President of Corporate Strategy at Dell, outlined five core principles driving the company’s AI vision. At the heart of this strategy is the belief that data is central to AI’s success. “AI is only as effective as the data it can access,” Mohindra stated.

Dell’s second principle is to bring AI to the data, a model that addresses the reality that 83% of data now resides outside public cloud environments, with nearly 50% being generated at the edge annually. According to Mohindra, running AI inference workloads closer to the data source—on-premise—can deliver over 60% savings in Total Cost of Ownership (TCO), while also enhancing data privacy and regulatory adherence.

Thirdly, Dell asserts there is no single model to rule AI. The evolving ecosystem will consist of various AI models, including large language models (LLMs), small and efficient domain-specific models, and both general-purpose and purpose-built architectures. “Flexibility and specialization will be critical,” Mohindra noted.

The fourth and fifth tenets focus on collaboration and architecture: maintaining an open ecosystem that allows various layers of technology to evolve independently, and fostering a broad network of partners to build and deliver AI capabilities, as no single company can supply the full stack.

AI set to reshape workforces

In addition to technical strategy, Dell sees AI as a transformative force for the global workforce. Mohindra warned that the rapid adoption of AI will lead to substantial disruption—redefining roles, creating new job categories, and rendering others obsolete. However, he described this shift as part of a recurring historical pattern.

“Sixty percent of today’s job roles didn’t exist in 1940,” he said. “More than 85% of roles created since 1960 were born from technological change. AI will follow the same trajectory.”

A key enabler of this transition will be agentic technologies—AI tools that can simplify tasks like software development, significantly lowering the barriers to high-skill roles. This democratization of access to complex tasks could be especially beneficial for countries with large youth populations, such as India.

India poised for AI leadership

Mohindra highlighted discussions with India’s Minister of Skill Development and Entrepreneurship, Jayant Chaudhary, stressing the role of governments in building AI infrastructure, supporting skilling programs, and updating regulatory frameworks to stay ahead of AI’s curve. He acknowledged India’s growing influence in the global AI ecosystem, supported by its rich talent pool and maturing digital infrastructure.

Dell, which maintains a significant presence in India, expressed optimism about the country's potential to lead in AI innovation. Mohindra urged continued investment in education, training, and public-private partnerships to ensure inclusive and sustainable growth.

Ultimately, Dell views AI not as a job killer, but as a job transformer—and a historic opportunity to reshape the future of work, powered by responsible innovation.