Dell Technologies Accelerates Telecom Transformation with Comprehensive Program, Expanded Partnerships
Dell Technologies (NYSE: DELL) has launched the Open Telecom Transformation Program to accelerate network cloud transformation for communications service providers (CSPs). The program combines Dell's cloud expertise with professional services through a four-step approach: Advisory Services, Implementation Services, Support and Adoption Services, and Managed Services.
The company has expanded partnerships with Ericsson and Nokia for network cloud adoption and AMD for telecom AI applications. Key enhancements include:
- Dell Telecom Infrastructure Blocks for Red Hat now supporting AI-ready infrastructure
- New disaster recovery capabilities for geo-redundancy
- Expanded AI capabilities through the Dell AI for Telecom program
- Collaboration with AMD to develop AI solutions for telecom use cases
- Launch of the Dell AI for Telecom Certification Program with partners including Amdocs, Kinetica, AiRA and Opanga
- Launch of comprehensive Open Telecom Transformation Program
- Strategic partnerships with major players (Ericsson, Nokia, AMD)
- Expansion into AI-powered telecom solutions
- New revenue stream through AI for Telecom Certification Program
- None.
Insights
Dell Technologies' Open Telecom Transformation Program represents a strategic expansion into the high-growth telecom infrastructure modernization market, positioning Dell to capture significant revenue opportunities as communications service providers (CSPs) globally invest in cloud transformation. This comprehensive program addresses a critical pain point for telecom operators - the complexity and risk associated with network modernization - through a structured four-step approach combining Dell's infrastructure expertise with professional services.
The strategic partnerships with Ericsson and Nokia are particularly noteworthy for investors, as these relationships with tier-one telecom equipment vendors could drive substantial deal flow. By creating an ecosystem that includes these major players, Dell is establishing itself as a central platform in telecom cloud transformation, potentially creating long-term recurring revenue streams through its managed services offerings.
Dell's AI initiatives for telecom, including the collaboration with AMD and the certification program with partners like Amdocs, represent Dell's strategy to differentiate its offerings with high-value AI capabilities that address specific telecom use cases. This focus on AI aligns with Dell's broader strategy to capture growth in AI infrastructure spending.
For investors, this announcement demonstrates Dell's execution on diversifying revenue sources beyond its traditional PC and server businesses, targeting the telecom vertical where infrastructure spending is being driven by 5G deployments and network modernization. The program leverages Dell's core competencies in infrastructure while extending into higher-margin services, potentially improving Dell's overall profitability profile over time as these initiatives scale.
- The Open Telecom Transformation Program, built upon Dell’s decades of digital transformation expertise, services capabilities and extensive telecom partnerships, aims to fast-track network operators’ transformation journeys
- Dell collaborates with Ericsson and Nokia for horizontal network cloud adoption and AMD to speed telecom AI use cases
Why It Matters
CSPs are adopting network cloud transformation for better efficiency and agility, but challenges such as operational transformation and ecosystem maturity slow progress. Many CSPs see the process as too complex and with risk, making some reluctant to move forward.
Open Telecom Transformation Program Drives Agility and Growth
Dell’s Open Telecom Transformation Program addresses these challenges by bringing together Dell’s cloud transformation expertise with tailored professional services to simplify and accelerate telecom network and operations evolution.
Through expanded partnerships, the program helps CSPs confidently adopt and support advanced telecom architectures and operating models. The Dell Open Telecom Ecosystem Lab provides CSPs access to software and workload validation and lifecycle management. The program aims to provide scalable, future-proof telecom infrastructure and operations, designed to meet the demands of a rapidly evolving industry.
The Open Telecom Transformation Program implements four flexible steps:
- Advisory Services for Telecom Cloud: Dell collaborates with CSPs to define transformation objectives and design a roadmap for cloud-native network adoption. This includes evaluating current infrastructure and operations and recommending the optimal architecture, operational construct and ecosystem partners to support long-term business strategies.
- Implementation Services for Telecom Cloud: Dell experts and integration capabilities, combined with its partner ecosystem, ensure deployment of the plan at scale while minimizing disruption.
- Support and Adoption Services for Telecom Cloud: Dell certified specialists and 24/7 AI-driven proactive maintenance and carrier grade-support with Dell ProSupport Plus provide efficient production environments. Dell collaborates with CSPs to ensure operational knowledge transfer, helping to maintain network uptime and reliability.
- Managed Services for Telecom Cloud: Dell Managed Services maintain operational efficiency by enabling scalability, enhanced observability and cost-effective operations.
"The shift towards cloud-native architectures is essential for CSPs to stay competitive in a rapidly changing digital landscape," said Raghav Sahgal, President of Cloud and Network Services, Nokia. "Dell's Open Telecom Transformation Program provides a clear and efficient pathway for CSPs to modernize. Together, Nokia and Dell are working closely with various operators to help them transition to open and disaggregated telecom networks."
Dell Telecom Infrastructure Blocks Simplify Cloud Network Deployments
Dell Telecom Infrastructure Blocks for Red Hat enhancements now support AI-ready infrastructure for advanced operations such as network traffic analysis and predictive maintenance. New disaster recovery capabilities help ensure geo-redundancy and business continuity, while integrated Dell PowerSwitch options simplify network configurations.
“We are accelerating transformation and reducing complexity for our CSP customers. Together with Dell we are developing certified deployment options for horizontal cloud-native architectures” said Per Narvinger, senior vice president and head of Business Area Cloud Software and Services, Ericsson. “Our recent certification of Ericsson Charging and Billing on the Dell Telecoms Infrastructure Block (DTIB), and collaboration to standardize key ORAN interfaces enable customer choice and flexibility in multi-vendor environments”.
Dell Expands Telecom AI Capabilities to Drive Business Outcomes
Dell expands its capabilities to give CSPs the confidence to deploy AI in and on their networks:
- The Dell AI for Telecom program expands to include a collaboration with AMD to develop AI solutions that support telecom use cases. Supported by Dell PowerEdge XE7745 servers powered by AMD EPYC™ processors, the AI Agent for Telecom Infra Monitoring with Metrum AI solution improves the quality of network operations. The solution will use generative AI to enhance real-time monitoring and management of telecom networks, providing detailed incident reports and recommended actions to mitigate telecom infrastructure issues.
- The Dell AI for Telecom Certification Program provides ecosystem partners access to validate their solutions on Dell AI-ready infrastructure. Certified AI solutions simplify integration into the network, enhance network performance and support operational growth. Initial launch partners include Amdocs, Kinetica, AiRA and Opanga.
Dell Professional Services help CSPs with their strategy, implementation and operation of AI solutions for telecom use cases.
Perspectives:
“The telecommunications industry stands at a pivotal juncture where network and operational transformation has evolved from an option to an imperative strategic priority,” said Dennis Hoffman, senior vice president and general manager, Telecom Systems Business, Dell Technologies. “Our Open Telecom Transformation Program will help communications service providers overcome the real and multifaceted barriers to modernization, which include the technology, people and processes that support the network, so they can drive meaningful business growth and accelerate innovation.”
“Globe is embarking on a cloud network transformation to unlock new innovation and improving efficiencies,” said Gerard Ortines, vice president, Core Network, Globe Telecom. “We are working closely with Dell Technologies to help us with this transformation, which is essential to remain competitive and capitalize on emerging opportunities.”
“Kinetica enables telecom operators to deploy generative AI on real-time data, resolving customer issues faster,” said Nima Negahban, CEO and co-founder, Kinetica. “Dell’s AI for Telecom Certification Program has helped us accelerate the deployment of production-ready AI workloads, driving faster customer adoption.”
Availability:
- The Open Telecom Transformation Program is globally available beginning today.
- The Dell AI for Telecom Certification Program is globally available beginning today.
- The Dell Telecom Infrastructure Blocks for Red Hat enhancements are globally available beginning today.
Additional Resources:
- Accelerate Your Telecom Transformation with Confidence
- The Future of Edge AI Innovation
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About Dell Technologies
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Source: Dell Technologies
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