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Dell's reinvention bodes well

by on19 December 2007


But analysts have doubts

Dell's bid to restructure itself away from the direct-sales model and into a Linux friendly expanded services and enterprise company are proving positive, according to analysts.

Speaking to PC World, Charles King, principal analyst at Pund-IT said Dell has been doing a good job building relationships with customers and partners and delivering products that are easier to deploy and manage.

The consumer business' direct-sales business model was destroyed by the fall in component prices King said and now the strategy to simplify IT is a play at small and medium-sized business and enterprises that will help Dell deliver better returns in the long term, rather than its lower-margin direct consumer business.

However, analysts are still concerned about the company's support and supply chain issues. It suffers from supply shortages and can't get its servers and OptiPlex desktops to individuals and small businesses in time.

More here.

Last modified on 20 December 2007
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