Dell's efforts to reinvent itself this year through a dramatic break from its
direct-sales model, expanded services and new enterprise offerings have shown
positive early results, but some users have lingering concerns about supply
chain management and support -- long-time issues for the company.

Weathering an accounting scandal and a slump in profit, founder Michael Dell
reclaimed the helm of the company after CEO Kevin Rollins resigned in January,
quickly replacing top managers and in May announcing plans to lay off 10 percent
of the company's workforce.

For years, Dell was the top PC vendor in the world, an acknowledged master
of logistics in a business where margins can be razor-thin. It was efficient
enough to keep prices low to ward off competition without suffering big setbacks
in profits. But by 2006, when Hewlett-Packard unseated Dell as global PC leader,
that was no longer the case.

Dell's plans to regain its former dominance have resounded in the market. The
company's third-quarter results, announced two weeks ago, showed profit increasing
year over year, and record revenue of US$15.65 billion. During the company's
earnings call, Michael Dell said the company will put products on more retail
shelves worldwide while also helping business customers "simplify IT"
and reduce maintenance costs via customized hardware, software and services.

The company has also moved to put accounting issues behind it, recently completing
an internal investigation and restating its financial results from fiscal 2003
to the first quarter of 2007.

The company has been making an effort to build relationships with customers
and partners and deliver products that are easier to deploy and manage, said
Charles King, principal analyst at Pund-IT.

Last month, Dell introduced a two-tier channel program designed to give partners
better access to Dell's training, marketing, certification and online resources.
The program will provide a better chance for Dell to interact and understand
its partners' needs, the company said.

"The company seems to recognize that it has bridges to enhance with customers
and partners in the channel. It's not something that's going to change overnight,"
King said.

After years of success selling PCs directly to users, the consumer business'
direct-sales business model hit a wall as component prices fell, Pund-IT's King
said. The strategy to simplify IT is a play at small- and medium-size business
and enterprises that will help Dell deliver better returns in the long term
than its lower-margin direct consumer business, analysts said.

However, some customers continue to have concerns about the company's support
and supply chain issues.

Dell is having supply shortages and can't get its servers and OptiPlex desktops
to individuals and small businesses in a timely manner, said Josh Kaplan, who
runs a

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