Dell Technologies is embarking on what COO Jeff Clarke calls the “biggest transformation in company history,” launching a comprehensive modernization initiative called One Dell Way that will fundamentally reshape how the 42-year-old tech giant operates in an AI-driven world.
In a memo sent to employees on Tuesday, Clarke announced that Dell will roll out standardized processes and a single enterprise platform on May 3, 2026, affecting the company’s PC business (CSG division), finance, supply chain, marketing, sales, revenue operations, services, and HR operations. The ISG division, which handles Dell’s cloud offerings, data servers, and AI infrastructure, will follow in August.
The initiative aims to replace Dell’s existing sprawl of applications, servers, and databases with a unified system that will “connect our data, break down silos, streamline our software applications and give us the foundation to work as one connected company,” Clarke explained. This represents a dramatic shift from Dell’s historical approach of building multiple variations of tools for fundamental processes across different functions.
The transformation is explicitly designed to position Dell for success in the AI era. Clarke emphasized that the company’s previous fragmented approach “won’t cut it in an AI-driven world,” stating that Dell needs “one way—simplified, standardized and automated—so we can be more competitive and serve our customers better.”
The modernization push addresses a critical challenge facing companies investing in AI: no matter how much organizations spend on AI tools, they won’t deliver speed or scale if the underlying data remains fragmented. One Dell Way is “foundational to our success in an AI-driven world,” Clarke noted.
Rather than a gradual transition, the new operating system will kick in on a single crossover date, requiring all affected employees to complete mandatory training starting February 3. Clarke warned employees to “be ready” and emphasized that “training is critical” with “no exceptions.”
The initiative, previously codenamed “Maverick,” was originally scheduled to launch in February 2026 but was pushed back to May. Staff working on the secretive, multi-year internal project had signed NDAs. The transformation requires what Clarke called a “mindset shift, from thinking and operating function-first to company-first,” acknowledging that some choices may not be optimal for individual functions but will improve decision-making and quality for the company as a whole.
Key Quotes
That won’t cut it in an AI-driven world. We need one way—simplified, standardized and automated—so we can be more competitive and serve our customers better.
Jeff Clarke, Dell’s COO and vice chairman, explained why the company’s historical approach of building multiple variations of fundamental processes across different functions is incompatible with AI-era demands. This quote captures the core rationale driving Dell’s massive transformation.
This is foundational to our success in an AI-driven world, and One Dell Way is how we get there—working as one company, with one set of processes, focused on what matters most.
Clarke emphasized in his memo to employees that the transformation isn’t optional or peripheral—it’s essential infrastructure for Dell to compete effectively as AI reshapes the technology industry.
This requires a mindset shift, from thinking and operating function-first to company-first. In some cases, that may mean we may make a choice that isn’t optimal for a particular function, but it speeds up decision-making or improves quality for the company as a whole.
Clarke acknowledged that the transformation will require cultural changes and trade-offs, with some departments potentially sacrificing local optimization for company-wide benefits—a significant shift for a large, historically siloed organization.
This is a comprehensive change, not a gradual transition. Once we start operating in the new way on May 3, we won’t go back.
Clarke made clear that Dell is taking a bold, all-in approach with a single cutover date rather than phased implementation, underscoring the urgency and commitment behind the transformation.
Our Take
Dell’s transformation reveals an uncomfortable truth many enterprises are discovering: you cannot bolt AI onto broken infrastructure and expect transformation. What’s particularly striking is Clarke’s explicit acknowledgment that Dell’s existing operational model is fundamentally incompatible with AI-era competition—a remarkably candid admission from a major tech company.
The single-cutover-date strategy is risky but necessary. Gradual transitions often result in prolonged periods of dual systems, confusion, and backsliding. Dell is betting that short-term disruption beats long-term paralysis.
This also signals a broader industry inflection point: the AI infrastructure boom isn’t just about selling GPUs and cloud services to customers—it’s forcing infrastructure providers themselves to modernize. Dell’s ISG division sells AI infrastructure to others, yet Dell itself needed a complete operational overhaul to function effectively in an AI world. That irony isn’t lost, and it suggests many enterprises claiming AI readiness may be similarly unprepared beneath the surface.
Why This Matters
Dell’s massive transformation underscores a critical reality facing enterprise technology companies: legacy infrastructure and fragmented systems are incompatible with the speed and scale demands of AI deployment. As one of the world’s largest technology companies, Dell’s acknowledgment that its existing operational model “won’t cut it in an AI-driven world” signals broader industry recognition that AI success requires foundational modernization, not just surface-level tool adoption.
The initiative highlights how AI is forcing established tech giants to fundamentally rethink decades-old operational structures. Dell’s 42-year history of building multiple variations of processes across functions—once a strength that allowed flexibility—has become a liability in an era where AI requires unified, standardized data flows.
For businesses watching Dell’s transformation, the message is clear: investing in flashy AI tools without addressing underlying infrastructure fragmentation will fail to deliver promised benefits. Dell’s approach of implementing changes on a single crossover date, rather than gradual transition, also represents a bold strategy that other enterprises may study as they navigate their own AI-driven modernizations. The success or failure of One Dell Way could influence how other Fortune 500 companies approach similar transformations.