Dell pre-sales leader on agentic AI, the AI Factory, and 13-to-1 server consolidation

Robert Dutt: Hello and welcome to In the Channel from ChannelBuzz.ca, bringing news and information to the Canadian IT channel community for the last 16 years. I’m Robert Dutt, editor of ChannelBuzz.ca and your host for the show.

We’re coming to you today from the floor of Dell Technologies World in Las Vegas where the expansion of the Dell AI Factory and new agentic AI capabilities have completely dominated the Day 1 headlines. But as we know, the keynote hype doesn’t always translate immediately to the loading dock. To understand how partners are supposed to actually size, architect, and sell these new AI infrastructure solutions, I sat down with Alan Ashby. He’s the senior director of Americas Data Center pre-sales and specialty sales at Dell.

We dig into the economics of on-prem AI versus the public cloud, how partners can get mid-market customers started with an AI supercomputer right at their desk, and why the traditional data center refresh is still a massive and highly lucrative play for the channel. Let’s get right into it. My chat with Alan Ashby.

Alan, thanks for taking the time. Appreciate it.

Alan Ashby: Absolutely. Thanks for having us.

Robert Dutt: Americas Data Center pre-sales and specialty sales. That’s a broad title. A lot of ground to cover there. To set the stage for MSPs, solution providers, folks listening to this, what can you tell me about what your team actually does kind of day-to-day when it comes to working with partners around infrastructure and AI solutions?

Alan Ashby: Yeah, absolutely. So we’ve got a handful of folks that, you know, we’re aligned and dedicated to the partner ecosystem focused across the Americas. We have a couple of primary roles. So from a pre-sales perspective, helping support our partners from a technical enablement, understanding our product portfolio, understanding how to position the products correctly, both amongst the portfolio itself, but also kind of competitively in the marketplace. We also run what we call a technical account plan with our partners. So, you know, supporting them on their certifications, their enablement motions, etc.

And then we also run what we have a program we call Heroes for our partners. So Heroes is our foundational enablement motion for partners. We run in the Americas somewhere between 15 and 30 regional face-to-face sessions every single quarter. Those we’d love to see partners participate in, try to do them all over the country. And those are deep dive sessions, you know, going through products and roadmaps and futures and how to position products, etc. And, you know, those have been an enablement motion for the last several years and been incredibly successful.

Robert Dutt: All right. We’re hearing a lot this week, obviously, about the expansion of Dell AI Factory and the idea of bringing AI on-premise to the edge, closer to the enterprise itself. And from an infrastructure perspective, you’ve got PowerRack, the pitch there being you go to live customer workloads from kind of the box to deployed in six hours and change. For a partner who’s trying to sell into the mid-market or the enterprise, you know, how does that kind of speed of value fundamentally change the conversation that they’re having with their customer, whether that’s the CEO, CIO, or the business leader?

Alan Ashby: Yeah, I don’t think there’s been a more exciting time for our partners with what the market’s putting out there for us. You know, when we look at, you know, you mentioned the mid-market space, I actually think there’s a massive opportunity for partners to go support those customers, especially with some of the agentic workflow processes that we announced today with some of the platforms.

You know, it may not be those 100 million, 200 million dollar opportunities, but almost every single small business and medium business, you know, you start with maybe a product like the Dell Pro Max GB10, and you start there and you start building out that agentic workflows, you know, building out automated dashboards with AI assistance built into it. You know, a lot of great things that a partner could go deliver that everybody can see value in. Sometimes in that mid-market space and small business space, it’s easier to get started on some of these agentic flows because they don’t have data that’s kind of messy. They don’t have legacy debt from a data center infrastructure perspective.

And then from a larger enterprise or commercial customer, you know, we have seen a number of very good successes across our partner ecosystem with delivering services and value to our customer sets collectively, you know, to help customers really try to find value through their AI journeys. Understanding and identifying key use cases or workloads that they think they can get value out of it, understanding the infrastructure, the architecture that’s designing it right. You know, early days, you know, we had a lot of times where, you know, customers and partners struggle with just, you know, how do we deploy this thing because power and cooling needs are maybe bigger than what I was expecting and, you know, managing through that challenge. So partners have a phenomenal opportunity, I think, to help provide that value to our customers collectively together. You know, every one of our partners, they bring a unique skill set and differentiators on their own to the marketplace and help support those customers to that kind of their own journeys together.

Robert Dutt: What is that infrastructure pitch down to that, especially that mid-market or even SMB customer? In the past, there was interest in doing it, I think often they would end up, if they were going to do it, doing it on public cloud, because the alternative was a big old infrastructure solution that doesn’t really fit them, unless maybe a partner can bring it on and kind of do a multi-tenant kind of situation there. But where are we at in terms of having right-fit infrastructure to make that work?

Alan Ashby: Yeah, I think, you know, even the stuff that we announced today on stage, you know, products we announced at GTC, I think really helped kind of build out that situation and story for a small customer to be able to scale. You think about going back to the Dell Pro Max GB10, you know, you can take that device and you can, you know, run a small business basically off that depending on the concurrent users and be able to move up from that to some of our Pro workstations all the way up to the GB300. You know, we can run a model as big as a trillion parameters, it’s kind of crazy what you can do on a desktop, you know, and that doesn’t require any unique power requirements, I can plug that into a normal outlet. And then I could scale into, you know, actual infrastructure depending on the size of what the need is.

And that’s where I think there’s a lot of opportunity for partners to think through, you know, how do they help customers scale through that. And so we talked a lot today at the show around, you know, the economics of everything. And in the long term, it’s going to be very challenging economically to run things in a public cloud. Yeah, on-prem is going to be a massive opportunity. And the fact that Michael today even talked about things about running foundation models and open source models on-prem, you know, your data is fully secure, you manage it all yourself. You know, it’s a lot easier to think about how I actually, you know, pull and extract value out of those different solutions.

Robert Dutt: Well, and that’s the pitch right for the desk-side agentic AI solution is the idea, I think that the number was 87% reduction in token cost and in terms of comparing the cost of acquiring, deploying, running the solution on-prem. I think the break-even was three months or something like that against running the same kind of solution in public cloud.

Alan Ashby: Yeah, I think that’s where customers are challenged today is, you know, you can have a lot of different, you know, foundational models and, you know, some of the agentic tools that are out there today that are subscription-based, cloud-based. And you can run through usage real fast without getting a lot of value out of it. When you start thinking about deploying stuff on-prem, you know, you know exactly what your output per day could be, and you can scale accordingly.

Robert Dutt: How does that change how a partner approaches both selling and thinking about running, maintaining that infrastructure as opposed to something that’s all outsourced to the cloud and has those significant question marks of cost attached?

Alan Ashby: I think there’s a lot of stuff we’re still figuring out, to be honest. You know, I think a lot of partners are trying to understand that and every customer is going to be a little bit in a different spot in their journey. And I think, you know, that’s where some of our partner ecosystems have tremendous value to help meet them where they are and help them take that first or second step forward to try to be able to deliver overall value to the company.

Robert Dutt: Do you see that kind of time to value, that reduction in overall costs being something that can get unstuck some of those classic cases of AI workloads that are getting put into prototype, into test phase, but never quite see the light of day, partially perhaps because of that economic headwind that you discover when you start trying to scale these things?

Alan Ashby: I think there’s that. I also think sometimes some customers probably try to maybe bite off more than they can chew at one time. And I think when we start thinking about these AI use cases, sometimes we’ll talk with some customers and partners helping them through them. They have, you know, two, three dozen things they want to try to accomplish out of one solution or one opportunity. It’s how do we narrow that down a little bit to where we actually extract value out of that particular use case that you’re trying to drive value with.

And we’ve seen some really great success with some of our partners being able to help, you know, negotiate and navigate partner customers through that journey. You know, I think it takes a skill set that’s unique, and we’re starting to see more and more of our partners, you know, invest in and put attention to building out dedicated AI practice teams, helping them understand the skill set. The market’s moving incredibly fast, unlike ever before. And so, you know, it takes somebody who has a real passionate interest and a lot of curiosity to understand how these things all work together and all the pieces fit together and how do you take advantage of everything as you go forward.

Robert Dutt: How do you see the co-delivery model evolving over time as you say, things are moving fast. When it comes to deploying AI factories, I think we heard earlier that, you know, the model is sort of Dell handling deployment and management of the overall environment while partners are being asked to focus on the application, the vertical, those kinds of things. How do you see the role of the channel, I guess, especially professional services and advisory-type partners evolving?

Alan Ashby: Yeah, I think that to your point, I think it’s evolving. And I think that, you know, there’s a lot of opportunities here from an educational services perspective, consulting services perspective, services for our partners, you know, very few customers, especially when you think about, you know, a traditional commercial customer, mid-market customer, know exactly what to do and what to do next. You know, they might have started a pilot out in the public cloud. And then they’re trying to figure out where to go from here. And like, there’s a lot of service opportunity for our partners there.

When it comes from, you know, other deployment services, I think there’s opportunities there for our partners, you know, depending on the solutions. When you look at post-delivery of the product into the customer, I think that there’s even more opportunity for partners of how, once things are deployed and installed, what’s next? And how do you help customers really extract value out of the infrastructure they spent a lot of money on, and have pretty high expectations of the ROI and the benefits they get out of it? I think there’s a massive opportunity for partners to help those customers through that journey.

I think there’s a big opportunity for partners to take a product like our GB10, GP300 products and say, how do I go show you how to build an agentic workflow on those systems that can deliver value for your customers? You know, those are all going to be partner-delivered opportunities.

Robert Dutt: All right. It sounds like even though it’s relatively early in the process, we are at the point where some of those next steps are becoming clear then.

Alan Ashby: Yeah, I would say so. I mean, the question is, how fast do things change? You know, and it’s one of those things like I look at the agentic opportunities, probably one of the biggest things that can bring value for our partners. We’re really looking for a partner ecosystem that has the skill sets to deliver those for customers.

Robert Dutt: Speaking of things changing, moving from traditional virtualization workloads to AI is a pretty big shift in how you think about structure, infrastructure, especially around storage, IO, networking, GPUs, needless to say. How’s the pre-sales team helping partners to figure out what the right size is for these solutions, both for current state and future state, so that you’re not either over-provisioning or under-provisioning customers?

Alan Ashby: That’s a great question, actually. I mean, we’ve done a lot of things internally at Dell to get better ourselves and have the right talent and resources to support the partner ecosystem. You know, we have teams that can help support partners, both from a sizing, scoping of the opportunity, all the way down to configuring and deploying that solution if the partner needs that help.

We’re also trying to help up-level our partners to be able to do it on their own. It’s kind of self-service and building the tools to help them through that motion. A couple of years ago, we started launching AI workshops, the different skill sets to help up-level and help that motion for a lot of our partners. The partners that have participated in those have seen a lot more success than those that didn’t. We do those multiple times a quarter and encourage partners to participate through those motions. We have an AI workshop multiple times a quarter in North America, and we go through every step of the phase from how do you have a conversation with a customer all the way through, how do you narrow down use cases, to all the way to how do you actually develop, design, and build the systems for what you need.

Robert Dutt: Along those same lines, but a little bit more customer-facing and kind of looking at the economics of it, AI projects carry a lot of financial and technical risk for CIOs. What resources are there, whether it’s proof of concept, technical validation, or specialty engineering teams that partners can tap in to kind of prove the math and de-risk a solution such as AI Factory for customers?

Alan Ashby: Yeah, there’s a couple of them actually, and I encourage all partners to kind of look at the options. We have at Dell, we have what we call our Customer Solution Centers, and those Customer Solution Centers have the ability to be able to work with a pre-sales specialist, a pre-sales expert on various different solutions. We have data centers where partners can take advantage of and leverage to be able to do proof of concept for customers, proof of value with those folks, and that can vary from any size of the architecture, from small all the way up to very large, and help support them through that. Also encourage partners to reach out to their Dell teams and how do you take advantage of those CSC resources. It’s a very simple process, but work through Dell teams.

Same thing would be to go spend time with us in our labs. We have a great lab up in the Hopkinton area where AI factories are manufactured and built, and love to take partners through that facility to be able to see what’s possible there. We have an AI lab down in Austin to help them through that as well. So there’s a lot of opportunities. I would say the other one is we have a lot of partners also building out their own capabilities, their own labs, and we’ve helped support them through that as well. I think that they’re providing some amazing value to their customers, being able to do their own POCs and demonstrations and whatever it might be to help support that customer throughout the process.

Robert Dutt: AI obviously gets the big headlines because it’s the 2020s as it is. But customers still have traditional enterprise apps and aging infrastructure that is going to need a refresh. I guess, how does your team handle guiding partners around going after the new shiny thing, the big opportunity that’s out there versus the kind of day-to-day operational challenge of standard data center modernization and refresh?

Alan Ashby: Yeah, it’s hard when they have two of these really big shiny objects out there that have a lot of potential value for customers, both with AI but also just traditional data center modernization. We’ve seen a really great success over the last year of helping customers, I would say, clean up the data center, think through what they’ve got today in there and how to modernize it and right-size everything.

When you look at some of the things that we’ll announce here at the show, it’s pretty exciting, honestly. There’s some great announcements we had in the Day 1 keynote, Day 2 keynote will be just as exciting, more from an infrastructure perspective of things. I’m really excited what we’re doing just with traditional servers and we’ve seen a lot of great success by our partner ecosystem over the last several quarters with them going in and helping customers look at consolidation of those environments. Our 18G server platforms, which we’ll announce, can consolidate 13 legacy servers into one. That’s kind of crazy math when you think about that.

It’s easy now to think about how do I help customers free up space and modernize things that makes it so AI is possible in their own data centers; consolidating racks in the servers is kind of a crazy concept. Then you think of how we’re looking at modernizing just traditional architecture with HCI architecture and the disaggregated architecture providing real value for customers with right-sizing, both compute capacity and storage capacity to be able to extract as much value as possible across the ecosystem of the portfolio.

Robert Dutt: Along those lines, any other, I guess hidden opportunities for partners, things that maybe don’t get the big attention of the desk-side AI or PowerRack or some of those things, but still represent—sort of along the lines of the data center example you just gave—opportunities that are worth pursuing, that are worth looking at, but maybe not quite the highest profile?

Alan Ashby: I mean, 100%. It’s easy to get excited with what we’re doing in AI. The market’s obviously kind of dictating a lot of that, but there’s a lot of opportunity, a lot of money to be made for our partners to be able to focus on classical data center architecture. We’ve got some great solutions. Our Dell Private Cloud is one that’s extremely exciting for partners, the opportunity to be able to help those customers through that process and think through that.

I also am extremely excited with what we’re doing around the security front with our data protection portfolio, our PowerProtect product lines. Security is one that I think in the age of AI, we need to think through security differently. There’s some additional opportunities for partners to think about how do they provide those services, those extra value pieces to help make sure all of these customers are ready for what could be an AI security threat.

Robert Dutt: I assume there’s a better together story to be told there between the hardware, the infrastructure, and the cyber protection.

Alan Ashby: 100%. That’s one of the biggest values that we have at Dell. There’s inherent value between the products themselves being able to support each other differently, but also they have the large Dell value prop with the Dell supply chain, our security chain, how we build products. Everything provides value across the entire portfolio.

Robert Dutt: What’s the single biggest misconception you see customers have around the idea of deploying on-prem AI in particular?

Alan Ashby: That’s interesting. The big one I would say is where do I get started and how big do I need to get started? I think that we saw early days, a lot of customers thought initially you had to just get in line for supply on large GPU systems when you could run a lot of workloads, really interesting and exciting AI workloads on a server with a PCIe-based GPU, and now even more so with some of the other platforms with workstations or GB300, GB10. The biggest misconception is just thinking about how big I have to get started.

I would encourage almost every executive, every leader of every company to start thinking differently about you probably should have an AI PC in your office and on your desk. You should have one of our, I always call it an AI supercomputer on your desk with the GB10. It’s about who’s going to be the most curious. There’s nothing that limits you from capabilities with what the models can do today. We really just need people to start using and playing and practicing and helping support the overall value to the customers and to our partners.

Robert Dutt: It’s an interesting concept that a computer with a better NPU or GPU on board can unlock that curiosity towards AI and ultimately drag to infrastructure refresh down the road, I think.

Alan Ashby: I think the key thing is you don’t have to be a coder. You don’t have to be a developer. Really today, anybody could be a developer. You could build your own application if you wanted to. You can build your own dashboards if you wanted to. You can run it 100% on-prem if you wanted to. You can use a coding assistant to help you manage through that. All you have to do is understand how to talk to it. How do you manage it like an individual and how do you manage it like an agent? It’s a secondary employee that helps you basically give you superpowers.

Robert Dutt: If an MSP wants to get serious about the data center and AI with Dell, what’s the first step if they’re already in terms of certification, competency, that kind of thing that they should be looking at?

Alan Ashby: Yeah, again, the portfolio is changing very quickly. I would say that table stakes obviously is having a good understanding of our compute platforms with what we’ve got put together with NVIDIA. That’d probably be step one. Step two would be thinking about what you can provide from a storage perspective and how you take advantage of both PowerScale and ObjectScale and all the way up through our lightning file systems, having good understanding how you can deploy that for your customers at scale.

Then the other one would be how do you work closely with the Dell teams? That’s one of the things that is always encouraging for partners to think through is Dell has this incredibly large sales force that can help give them scale, give them opportunity. How do you share as a partner? How do you share your value back to the Dell teams? Make sure that they understand where you can be supportive of their customer experience. How do you work collaboratively with the Dell teams across the ecosystem? So forth.

Tons of opportunity. We’re always looking for partners that have the right skill sets and the right capabilities. Our Dell teams want to bring them into customer accounts because we need their support. We need their help.

Robert Dutt: Acknowledging this might be a wide range, what are some of those common threads that make for a good partner for you in terms of skill sets, areas of focus, that kind of thing?

Alan Ashby: Yeah, I think it’s evolving over time. Today, I look at partners that have unique skill sets are incredibly important. Partners that have a competency across our portfolio. Table stakes of having competencies around our compute platform, our storage platforms, but then thinking even deeper, how do you have competency around some of our more isolated platforms like what we do in our unstructured storage space with PowerScale and ObjectScale and access scale that we announced today? Same thing with our data protection portfolio, our cyber resilience platforms, our SRP platforms, like partners that have deep technical specialty expertise in those areas, they’re always going to be needed and valued in our partner ecosystem.

AI is one other area to differentiate a partner from, but there’s a lot of those opportunities. Even today with our Dell Private Cloud, I always tell partners that whenever you see a pivot change in our portfolio, like we did when we launched the Dell Private Cloud, this is an opportunity to differentiate yourself as a partner from other partners. To jump in early and be able to build the skill sets that our Dell team is looking for out of a partner to support their customers. Our Dell teams are always looking for those partners that can help lead the charge, especially from a technical perspective with the customers to validate the solution themselves to be able to provide that extensive value to the customer themselves.

Robert Dutt: All right. Last one for me, without naming any names or with naming names, should you feel like doing so? What’s the most creative, unexpected, surprising use case for a Dell AI factory that you’ve seen a customer deploy thus far?

Alan Ashby: Wow, that’s a hard one. I mean, there’s a lot of really interesting ones I’ve seen. I mean, early days, some of the ones I thought was some of the most exciting stuff that we did with Amarillo County in Texas. It’s a county that there’s a lot of languages natively spoken there and the community there needed to provide basically language services to a very large broad-based set of individuals in the community in their native tongue. And the Dell team worked closely with those folks to make that happen.

All the way down there to where we got a number of partners helping small entities, both commercial and public entities, really think about how they can drive agentic workflows and some of the things that are dealing around that with dashboarding. Chat, agents, obviously is an easy one. And then helping customers through kind of how do you do code assist models. Those are probably the really big ones that we see from a use case perspective from our partners.

Robert Dutt: No shortage of opportunities.

Alan Ashby: Oh my gosh, it’s unbelievable how many there are today.

Robert Dutt: Thank you for taking the time.

Alan Ashby: Absolutely. This is great. Thank you.

Robert Dutt: There you have it. Alan Ashby from Dell. I’d like to thank Alan for his time, carving out a few minutes for me amidst the chaos of day one here at DTW.

My big takeaway from that conversation is that you don’t have to be deploying a multimillion dollar PowerRack system to get into the AI game with Dell right now. Between the new desktop workstations running localized agentic workflows and the massive 13 to one server consolidation plays they’re seeing in the traditional data center, there’s a very practical immediate path towards revenue here for partners in the mid market.

I’d like to thank you as always for listening to the show. If you’re enjoying our coverage from Dell Technologies World, please do take a second and follow or subscribe in the podcast app of your choice. You can find us on Apple Podcasts, Spotify, YouTube, wherever you get your audio. And if you have a moment to leave a rating or review, always hugely appreciated.

Until next time, I’m Robert Dutt for channelbuzz.ca and I’ll see you in the channel.