As I exited the “t” station this morning, I was handed a complimentary copy of The Wall Street Journal.  I quickly scanned the headlines, and one immediately caught my eye: “Tech Spending Bounces Back As Profits Rise.” The piece looks at increasing spending on technology goods and services as the economy improves and how this spending is breathing new life into companies like Cisco Systems Inc.

“The economy has entered a new ‘phase of recovery,’ said John Chambers, Cisco’s chief executive, in a call with analysts, adding that he planned to hire up to 3,000 workers in coming quarters.  ‘This is one of the most robust positive turnarounds I’ve seen in my career,’ he added.

“Cisco’s results add to a growing body of evidence that companies are starting to open their wallets after the recession.  The Commerce Department last week said business spending on equipment and software rose at a 13.3% annual rate in the fourth quarter, adjusting for inflation. That was the fastest growth since early 2006.”

Good news!  Although the piece goes on to say that spending was still below what it reached in late 2007, and economists believe companies must continue raising capital-spending levels through the remainder of the year to keep pace with depreciation.

However, the good new for those in the technology field is that according to this piece, “Companies appear particularly eager to spend on technology, which forms the backbone of many corporate infrastructures and can boost productivity. As a result, Cisco and its peers, which fell into a slump in the fourth quarter of 2008, have rebounded sooner than companies in other sectors…”