Too Big, Too Powerful
The basic issue for companies that provide IT and hardware is that new servers are so big and powerful that you can run most of a SMB needs on a handful of servers. The big boys have seen the writing: Open source software + powerful servers = no more money for them.
But Big Business *can* create a "cloud environment" and tell you that it's the best thing since sliced bread. Big companies can now extract the income they need on a subscription basis for a nice reliable cash flow and they don't have to worry about licensing or anything. Just provision a new instance and off they go. Those services are great for those who can't do IT themselves or don't want to do it themselves.
But Michael Dell sees that too. And he also sees that the next generation of IT infrastructure will come in a single box and provide the same cloud like services without the subscription. Hundreds of unique applications and sever instances on a single machine. Once the "converged infrastructure" becomes mature, expect to see a similar move OFF the cloud as the cost benefit suddenly tips the other way.
Michael Dell is one of the reasons the PC is a commodity now. I completely expect him to do the same thing for private clouds that he did for the PC. I think it's funny that El Reg would go so far to praise his vision and then think that he has suddenly run out of ideas. Dell now has all the pieces - including the hypervisor, networking hardware, deployment software and storage systems - to create something really powerful. Perhaps it is the author who is lacking vision?