Dell Technologies is integrating Israeli innovation into its global artificial intelligence strategy, a senior executive confirmed at a recent conference in Tel Aviv. Sascha Meier, Dell's CTO Ambassador, detailed how technologies developed in Israel are central to the company's AI advancements and have contributed to record-breaking internal efficiencies.
Speaking at the Dell Technologies Forum on September 15, Meier revealed that internal AI adoption has enabled Dell to increase revenue while maintaining sales costs for the first time in its 40-year history. This shift underscores the significant role of Israeli R&D in shaping the company's future in the AI-driven market.
Key Takeaways
- Dell's CTO Ambassador, Sascha Meier, confirmed the central role of Israeli technology in the company's AI revolution during a Tel Aviv conference.
- Internal AI implementation increased Dell's sales team's customer-facing time from 20% to 27%, boosting revenue and cutting costs by 4%.
- Dell has a long-standing presence in Israel since 1993, including a major R&D hub and acquisitions like ScaleIO, now Dell PowerFlex.
- Meier stated that the origin of technology is not a barrier for Dell's partners, emphasizing a focus on performance and results over politics.
- The company is pioneering AI PCs with powerful Neural Processing Units (NPUs) and envisions a future where employees manage teams of digital AI agents.
Dell's Deep Roots in Israel's Tech Scene
Dell's connection to Israel's technology sector is not new. The company established its presence in the country in 1993 through its subsidiary, Dell Israel Ltd. This subsidiary hosts one of the company's most important research and development centers, with a specific focus on artificial intelligence and cybersecurity.
Over the years, Dell has strengthened this relationship by acquiring several Israeli startups. These acquisitions have integrated cutting-edge Israeli innovation directly into Dell's product portfolio. Once a company is acquired, it becomes a part of Dell, an American corporation, regardless of its origins.
The ScaleIO Acquisition
A prominent example of this strategy is the acquisition of ScaleIO. Founded by Israeli entrepreneurs, ScaleIO developed high-performance, software-defined storage solutions. The company was acquired by EMC in 2013, which was later acquired by Dell in 2016. The technology has since been rebranded as Dell PowerFlex and remains a core part of Dell's enterprise offerings.
At the recent Dell Technologies Forum in Tel Aviv, which attracted over 1,000 attendees, the company unveiled the latest version of this software, PowerFlex Ultra. Meier described it as offering "ultra scalability, performance and efficiency," highlighting the continued impact of the original Israeli innovation.
Internal AI Adoption Yields Historic Results
A major focus of Meier's presentation was Dell's internal strategy of being "customer zero" for its own AI innovations. This approach involves applying AI to improve the company's own operational efficiency before offering similar solutions to clients.
"We decided not only to innovate on behalf of our customers, but to look at ‘customer zero’—how we are applying AI by ourselves," Meier stated in an interview with The Media Line.
The results of this internal experiment have been significant. Meier's team identified that sales personnel spent approximately 40% of their time on administrative tasks like preparing proposals and searching for information. By implementing an AI-powered chatbot, they automated many of these processes.
Quantifying AI's Impact
The implementation of internal AI tools led to a measurable increase in productivity. The time sales staff spent directly with customers grew from 20% to 27%. This efficiency gain allowed Dell to increase revenue while simultaneously cutting sales costs by 4%, a first in the company's four-decade history.
"It is the first time in 40 years of Dell’s sales history that we were able to increase revenue by actually maintaining the cost of sales," Meier explained. He noted that this demonstrates the immense potential of AI to transform core business functions.
The Next Wave of Computing: AI PCs
Meier also discussed the rapid evolution of personal computing, driven by the integration of AI-specific hardware. New computers are being designed with Neural Processing Units (NPUs), specialized chips that run AI tasks much more efficiently than traditional CPUs.
He provided specific metrics to illustrate this leap in performance:
- Standard AI PCs today can handle over 10 teraflops of computing power.
- Copilot+ PCs are required to reach over 40 teraflops.
- New Dell desktop solutions, developed with Nvidia, are capable of thousands of teraflops, powerful enough to run large language models locally.
This technological shift is set to redefine the workplace. Meier envisions a future where employees do not just use tools but manage teams of digital "agents" that work alongside them.
"In the future, I’ll be able to upload a customer request and have a team of AI agents analyze it, identify needs, check references and even generate a proposal," he said. "My role will be to guide and interact with them, almost like managing a digital workforce."
Focus on Technology Over Politics
During his visit, Meier addressed the question of whether the Israeli origin of some technologies creates challenges with partners in other regions. He was clear that Dell's focus is on performance and outcomes, not politics.
"We don’t get into politics – not in the Middle East, and not anywhere," Meier asserted. "Dell plays everywhere and we sell everywhere. All of our partners are aware of Israeli technology. It’s not a barrier."
He emphasized that when customers seek solutions, their primary interest is in achieving a specific goal. Dell's mission is to provide the most effective technology to meet that need, which often involves solutions with roots in Israel.
Meier concluded with advice for business leaders embarking on their own AI journeys. He cautioned against adopting AI without a clear purpose, stressing the need to align projects with core business strategies to achieve measurable results.
"You have to identify the process that will move the needle," he advised. "It’s really about your business strategy... what exact process we will apply AI against. When you just take a license and have a nice way to ask questions, that’s great, but what is the impact for the company?"