Michael Dell, CEO of the computer giant, was speaking at an analyst conference in Austin, Texas, when he admitted that companies cut or froze their IT budgets during the recession, sticking with old and outdated hardware and software. He said that things are beginning to turn around, however.
Dell said that the reasons for the change include faster processors and new software like Windows 7 and Office 2010, which have prompted companies to loosen the restrictions on their budgets to get back into the cycle of upgrades they were previously used to.
Dell said that his company has seen a huge increase in PC upgrades now that Windows 7 has taken off and proven its stability. Dell expects more to come as growth returns to the world economy.
“It’s fair to say that we were surprised at the rate of acceptance of Windows 7 by corporate customers,” Dell said. “As customers have installed Windows 7, we’ve seen they are happy, they haven’t called us [for support] as much.”
Dell’s remarks also come not long after an IT spending report yesterday revealed that spending in the IT department was still just as bad as it had been in 2009. Dell thinks that things will change in the second half of this year, which is the gleam of hope that many in the IT business are hoping for.