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IT vendors offer new financing options for cash-strapped enterprises

News Analysis
Apr 27, 20203 mins
Data Center

Cisco, Dell, HPE, and Nutanix craft payment deferrals, lower initial payments, and trade-in deals as short-term sweeteners for businesses that need new gear but whose budgets are pinched by COVID-19

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Credit: Thinkstock

Enterprise equipment vendors are rolling out financing and relaxed payment plans in an effort to keep customers buying during the COVID-19 lockdown that might be stressing their budgets.

For example, Nutanix, the hyperconverged infrastructure (HCI) software provider, announced the Nutanix Special Financial Assistance Program (NSFAP) that provides its partners extended payment terms to give them more financial flexibility. Nutanix also offers financing options for customers through Nutanix Financial Solutions (NFS). 

The program runs through May 31, and participating partners can offer the extended payment terms to their customers. The length of the term extensions will be based on individual partner’s needs, according to the company.

Nutanix Financial Solutions, the company’s finance arm, is offering 180-day deferred payments, customizable payment plans and cash trade-in of existing assets. The company has struck a deal with Procurri, a data-center lifecycle management company, to run a joint buyback program for legacy IT equipment.

Nutanix has a program called FastTrack for virtual desktop infrastructure, which enables channel partners to rapidly create secure VDI environments for existing customers.

The company has also launched a work-from-anywhere initiative that includes a 30-day free trial of Xi Frame, the company’s desktop-as-a-service offering that lets customers choose from cloud providers like Amazon Web Services, Microsoft Azure, Google Cloud, or Nutanix AHV to rapidly deploy desktops across the globe, according to the company.

Dell, HPE and Cisco financing

Earlier this month, Dell Financial Services launched Payment Flexibility Program, a $9 billion financing program with several payment options:

  • Zero up-front acquisition costs
  • 24-month financing at 0% interest for servers and select storage
  • 36-month financing at 3.99% interest for the majority of Dell Technology products
  • As short as a 6-month term and rotation-lease options for select laptops, thin clients and mobile workstations
  • Three-, six- and potentially nine-month deferrals for qualified credit

Dell is also adding a one-year term to its flexible consumption offerings through its per-use hardware-leasing program, Dell Technologies On Demand, which until now offered only three- to five-year terms. Dell is also offering six- to 12-month terms for laptops and desktops.

HP Enterprise’s HPE Financial Services (HPEFS) arm is setting aside more than $2 billion in financing for customers.

This includes a Payment Relief Program, which can let customers acquire technology they need and pay 1% of the total contract value each month for the first eight months. In 2021, monthly payments jump to 3.3% of total contract value. The program also includes a 90-day delayed-payment structure.

HPEFS offers to apply the value of existing IT assets against the cost of new  technology and will buy back newer technology that customers no longer need. It also offers certified, pre-owned HPE technology.

Finally, Cisco announced a $2.5 billion line of credit for customers through Cisco Capital’s Business Resiliency Program (BRP) along with new purchase terms, such as 90-day deferral of payments through the end of 2020. Financing terms return to normal in 2021.

The Cisco Refresh program sells certified remanufactured products that are less expensive than brand new gear and are available through the BRP program.

Andy Patrizio is a freelance journalist based in southern California who has covered the computer industry for 20 years and has built every x86 PC he’s ever owned, laptops not included.

The opinions expressed in this blog are those of the author and do not necessarily represent those of ITworld, Network World, its parent, subsidiary or affiliated companies.