UPDATE 1-Dell CEO sees demand upturn from smaller businesses

* Definite signs of upturn in demand from SMBs – CEO

* Many smaller firms still have credit issues

* Healthy demand for servers and storage

(Writes through, adds quotes, details, background)

BRACKNELL, England, April 27 (BestGrowthStock) – Dell Inc (DELL.O: ),
the world’s third-biggest maker of computers, is seeing definite
signs of an improvement in demand from small and medium-sized
businesses, Chief Executive Michael Dell said on Tuesday.

“We’re definitely seeing signs of an upturn,” he said.

Speaking at an event at the company’s British headquarters,
Dell said smaller firms were still having trouble gaining access
to credit, but had regained their appetite for growth and were
using Dell’s servers and storage to be more efficient.

Dell ranks behind Hewlett-Packard (HPQ.N: ) and Acer (2353.TW: )
in overall computer sales, with 13 percent of the global market,
but sells more computers to small firms than any other supplier.

“The total availability of credit for small businesses is
still somewhat of a challenge and that’s still impacting small
businesses,” Dell said. “But overall we’re seeing healthy
growth, particularly in the server and storage parts of the

Many of Dell’s small and medium-sized business customers
rely on Dell financing to make their purchases.

Business spending on IT is expected to recover in the next
12 months after budgets were slashed a year ago in the global
downturn. IT research firm Gartner expects global shipments of
PCs to jump nearly 20 percent this year.

Dell reported an 11 percent revenue rise for its fiscal
fourth quarter to Jan. 29 but its gross margin fell by more than
expected. It said in February it was cautiously optimistic that
better commercial demand would continue into its new fiscal
year. [ID:nN24236287]

Dell shares were down 0.3 percent by 1431 GMT.

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(Reporting by Georgina Prodhan; Editing by David Holmes)

UPDATE 1-Dell CEO sees demand upturn from smaller businesses