Enterprises are buying PCs again

Tinman Michael Dell is opening the champers as his Greek government style austerity drive appears to have paid off.

According to the quarterly results that crossed our desk, Dell has done a lot better than Wall Street expected.

Dell has been having a hell of a time lately and restructured the  company to fight off the worst of the recession.

However, now it it is starting to look as if it has all paid off as Dell has reported that the outfit’s net profit rose 52 percent to $441 million ($539) over the same period a year ago while revenue increased 21 percent.

What is crucial is that Dell’s sales appear to be based on a sudden surge in buying from the Corporate sector.  This is a sign that as far as hardware is concerned big business is starting to buy gear again.

Dell, the third-largest personal computer maker and is a bell weather of the state of the IT industry. Most of its sales go to businesses and when these decided to put IT expenditure on hold for a bit, Dell went to the wall.

Dell added that its first-quarter results “reflect the powerful combination of Dell and Perot Systems and sound company execution in an overall improving business environment.” Dell bought computer services firm Perot Systems for $3.9 billion last year.

Dell said revenue from large enterprise clients was $4.2 billion, up 25 per cent over a year ago, led by a servers – a 61 percent increase – and services, up 44 percent.

SMB revenue was $3.5 billion, an increase of 19 percent, while revenue at its consumer division rose 16 percent.