• San Jose Mercury News, Wednesday, May 19, 2010 10:42 AM

Hewlett-Packard reported strong sales in markets around the world yesterday, easily beating analysts' estimates in an indication that customers who were deferring purchases are opening up the purse strings, Brandon Bailey reports.

Businesses are investing in new computer systems to take advantage of advances in software and cloud computing, says Frost & Sullivan analyst Ronald Gruia. His research shows that more companies will increase their tech spending in the second half of this year.

CEO Mark Hurd told analysts that HP is positioning itself for future growth with its spate of acquisitions over the past few years, including 3Com, Electronic Data Systems and, last month, smart-phone maker Palm. He pointed out that customers are increasingly using portable devices and, by owning the software, "we can control the experience."

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