Dell and Microsoft Team Up for AI-Powered Cloud Solutions

USAFri Dec 19 2025
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Dell, once known mainly for its hardware, is now diving deep into the world of AI and cloud services. They're teaming up with Microsoft to create new software and data management tools for businesses. This partnership is all about making AI more accessible and flexible for companies that want to use both cloud and on-site systems. One of the key tools they're working on is Azure Local, a hybrid cloud solution that lets businesses use Azure services on their own hardware. This is a big deal because it means companies can start using hybrid cloud systems without buying new equipment. Dell's PowerStore system is a great fit for this because it allows businesses to scale their storage and computing power independently, making it easier to adapt to changing needs. But it's not just about storage. Dell is also integrating its PowerScale storage solution into Microsoft's cloud. This means businesses can manage their data more easily, whether it's stored on-site or in the cloud. The goal is to create a seamless experience that helps businesses make the most of their data. Of course, with great power comes great responsibility. Moving large amounts of data between cloud and on-site systems can be risky. That's why Dell is also working on improving its PowerProtect Backup Services. These services are designed to protect hybrid workloads and provide data protection and cyber resilience.
And let's not forget about AI PCs. Dell and Microsoft are both betting big on this market, which is expected to grow from $61 billion this year to $992 billion over the next decade. They're adding new services to help businesses develop and deploy AI agents, and their AI PC portfolio is optimized for Windows 11 and Microsoft 365. But perhaps the most important thing is that Dell and Microsoft are making hybrid cloud solutions practical, not just theoretical. They're giving businesses a way to run Azure operationally, but with on-prem performance, security boundaries, and data locality still intact. This is a big deal because, according to research, more than 60% of enterprise teams still keep their highest-value workloads on-prem due to data gravity and regulatory constraints, even though they prefer the Azure-style operational model. In the end, this partnership is all about making AI more accessible and flexible for businesses. It's about creating tools that help companies make the most of their data, no matter where it's stored. And it's about making hybrid cloud solutions practical and easy to use.
https://localnews.ai/article/dell-and-microsoft-team-up-for-ai-powered-cloud-solutions-f595cf12

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