Blade Watch

Reuters

SANTA CLARA, California (Reuters) – Dell Inc Chief Executive Michael Dell said the business climate was improving and repeated his expectation for a “powerful” hardware refresh cycle beginning next year.

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 on Tuesday at a forum in Santa Clara, in the heart of Silicon Valley. “The U.S. is doing a bit better than Europe; Europe’s probably six to nine months behind the U.S.”

Dell 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.

I think we’ll see a series of investments and projects kick off as economic conditions improve and different organizations continue with their mergers and acquisitions or their disintegrations (there have been a few announcements today about this in the banking sector here in the UK). Regardless the drive to reduce costs, to be more agile and more responsive to business need can only be achieved with more efficient servers using tools like virtualization and grid computing, the economics of retaining legacy servers decreases year on year. An interesting read, do check it out.

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