Dell Technologies targets private cloud gains with new Azure Local features

Dell and Microsoft are teaming up to offer private cloud on Azure Local for a simplified hybrid solution

Dell Technologies logo and branding pictured at the company's vendor stall at the International Broadcasting Convention (IBC2025) on September 12, 2025 in Amsterdam.
(Image credit: Getty Images)

Dell Technologies argues that there's no longer a debate between public cloud or private – instead, the focus is on using all of the available options and finding ways to manage that complexity.

"The conversation around enterprise IT is changing," said Caitlin Gordon, Vice President of Multicloud Product Management for Dell Technologies in a blog post. "It’s no longer about choosing between public cloud and on-premises infrastructure."

"Nor is it a simple decision between running traditional or modern workloads. Today, the real challenge is how to manage all of these different environments and application types together, simply and consistently."

To help, Dell is expanding its existing partnership with Microsoft – which already offers AX System for Azure Local, later adding PowerFlex to the mix – and will offer support for Dell Private Cloud and PowerStore on Azure Local, Microsoft's system for running Azure services on in-house data center infrastructure.

"Microsoft and Dell Technologies share a vision of empowering businesses to achieve more through innovation and collaboration," said Dean Paron, VP of product management for Azure Edge Infrastructure at Microsoft.

"By bringing Microsoft Azure Local to Dell Private Cloud and PowerStore, we’re helping customers simplify their IT operations and unlock the full potential of their hybrid cloud strategies," he added.

The partnership comes amid a rising debate over cloud repatriation – the idea of moving workloads from the cloud back to on-premise infrastructure to help reduce costs, increase control, or improve flexibility.

While firms like Basecamp and Ahrefs have saved millions making such a move, hybrid remains the most popular option at 68% of companies, according to one survey.

Private Cloud on Azure

Gordon said the partnership delivered a first for private setups on Azure, and this latest announcement shows the duo want to take things further.

"Dell Private Cloud is the first Azure Local offering… a full-stack solution across compute, external storage, and networking, delivered from a single vendor, with end-to-end solution-level support included," Gordon said.

With Dell Private Cloud, Azure Local users will get automated lifecycle management, with end-to-end automation to help reduce complexity, as well as independent scaling, allowing compute and storage to be managed separately to reduce costs.

Plus, the system offers a disaggregated approach – as Dell puts it – that gives businesses a future-ready, adaptable system.

"This combination of Dell Private Cloud and Dell PowerStore delivers the simplicity, flexibility, and performance customers need to manage both traditional and modern workloads across their IT estate, Gordon said.

PowerStore for flash storage

The addition of PowerStore, Dell's enterprise-grade, all-flash storage solution, will give flexible scalability with built-in data protection, Gordon added.

"Always-on data reduction lowers storage costs without impacting performance, backed by the industry’s best 5:1 DRR (Disaster Risk Reduction) guarantee," Gordon added.

Early access for Azure Local with Dell Private Cloud and PowerStore will begin in Spring 2026, the company confirmed.

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Freelance journalist Nicole Kobie first started writing for ITPro in 2007, with bylines in New Scientist, Wired, PC Pro and many more.

Nicole the author of a book about the history of technology, The Long History of the Future.