With cloud initiatives, Dell hopes to catch wave of change that's sweeping over computing world

Steve Schuckenbrock concedes that the term "cloud computing" has become something of an overused buzzword among computer types. The terms "private cloud," "public cloud" and "hybrid cloud" get thrown around way too much, he acknowledges.

But in spite of the hype, he says, the trend behind the buzzword is very real — and it's going to reshape the way business computing gets done in this country and around the world.

"I think there is way too much hype and too much discussion on how to build a cloud," Schuckenbrock said in a recent interview. "The conversation needs to be on the business value that can be generated."

So, let's pause for a second to explain a few things. Cloud computing refers to a new way to design business computing networks that promises to be high on flexibility and low on cost.

It's about doing more work on fewer machines and shifting work easily between machines. And it's about saving money on labor because more management is done remotely with the help of slick new software tools. And it's as well about employees, clients and business partners getting access to the information they need over the Internet with whatever smart device they happen to be using.

Schuckenbrock believes cloud innovation is going to save businesses tons of money and Dell is going to make lots of money helping its clients move to the new way of doing things. And much of the journey to the cloud will be managed by his global services organization.

"Dell is sitting in such a cool spot," Schuckenbrock said. "And the services business is accelerated to take advantage of that cool spot. If we were just a hardware merchant, ... I think we would miss the possibility with our clients to help them make this transition."

Since February, things have started moving faster. Schuckenbrock became head of the services business, moving over from the top post in Dell's enterprise hardware operations. He before long brought on a new team of senior executives to help push growth faster.

In April, Schuckenbrock announced that Dell would make a $1 billion investment in new cloud computing data centers and in business solutions centers to be built around the globe. The business solutions centers will be places where prospective business clients can "test-drive" their legacy software applications and see how they work with cloud computing applications.

Bigger base of legacy business to deal with than I do

"Our competitors have got a bigger base of legacy business to deal with than I do," he said. "I think I can execute without the encumbrances of culture and contracts from the past."