Dell CEO sees spurt in IT biz spending

While noting that there are still obstacles to the recovery, Dell sounded optimistic about the upcoming year as the tech sector makes its way out of a crushing recession that has severely impacted end-demand.

“It’s getting a bit better incrementally..., but I think there are still challenges out there,” Dell told business executives at a forum in Santa Clara, in the heart of Silicon Valley. “The US is doing a bit better than Europe; Europe’s probably six to nine months behind the US.”

It expects companies to begin upgrading aging equipment starting in early 2010 and said the server refresh cycle was already underway and stronger than expected, thanks to Intel’s new Nehalem processor. Dell trails HP in global PC rankings and is being pressured from below by fast-rising Acer Inc, which has made huge market share gains, in part due to netbook sales.