With this new program, provided by IBM Global Financing, IBM hopes to help clients affordably acquire new mid-range and, high-end IBM Power Systems and storage offerings. It also includes IBM cash-back for new or used equipment, attractive lease terms and no payments until early 2011 for credit-qualified clients.
IBM will provide clients with cash-back opportunities for specified old Oracle-Sun and HP equipment, which can be applied to new Power Systems and storage lease payments. Used and old HP and Sun systems will be processed, dismantled or sold as parts and scrap on the secondary market. Additionally, credit-qualified clients can benefit from a interest-free payment deferral and avoid payments until April 20112 on their new Power & Storage infrastructure to accommodate a seamless move to IBM systems.
Through leases and loans, IBM claims that IBM Global Financing will help clients convert large upfront investments into a stream of monthly payments to make budgeting easier and more predictable. By leasing equipment from IBM Global Financing, clients can preserve cash for other strategic investments- growing their core business, funding additional innovation or staying competitive.
“Cash back opportunities with competitive leasing rates and deferrals will make it easy for Indian businesses to migrate to the new IBM's workload optimized systems,” said Sapan Jain, Country Executive, IBM Global Financing, India/South Asia. “Customers can then rest assured that they have the solid backing of IBM’s continuing investment in R&D for the POWER & Storage portfolio, a well-defined roadmap and the upgrade flexibility they need to protect against technology obsolescence and keep their business growing.”
Through the IBM Global Financing lease program, IBM claims that clients can be confident that their technology expenditure will keep pace with their technology growth, without major up-front cash outlays for incremental capacity increases. Credit qualified clients can "turn on" additional processing capacity built into the mid-range Power 770 and high-end 780 and 795 Power systems & IBM Storage systems -- without major disruption to their operations -- and experience little or no change to monthly lease payments through a base lease extension.
"At our recycling and refurbishment sites in India, we are prepared to take back several models of HP and Sun equipment," said Sapan. "We will extract as much value as we can for the customer. The money can be applied to IBM systems, software and services. Financing can smooth out up-front transition costs, helping to better match costs with expected benefits."