HPE Financial Services (HPEFS) is designating more than $2 billion in financing specifically to help customers with their financial challenges stemming from the COVID-19 crisis, including cash-flow or liquidity issues. HPE Financial Services is also introducing initiatives including a Payment Relief Program to help customers acquire new technology and alleviate some of the financial strain as they navigate this uncertain climate.
The $2 billion in HPEFS financing will be applied to help customers ensure business continuity and adapt in the current environment by addressing new technology financing needs, and convert their IT infrastructure into new sources of capital.
Additionally, through the new Payment Relief Program, HPE customers can acquire the technology they need today and pay “only” 1% of the total contract value each month for the first eight months, deferring over 90% of the cost until 2021. This could be a safety buoy for businesses to help navigate the financial impact of COVID-19 in the next few months. Beginning in 2021, each monthly payment would equal approximately 3.3% of total contract value.
“This is a challenging time to lead a business. Today more than ever, IT leaders and CFOs play a central role in ensuring financial health while continuing operations,” said Irv Rothman, President and CEO of HPE Financial Services. “At HPE Financial Services, we are committed to helping businesses align their priorities from an IT economics perspective and provide them with concrete solutions so they can move forward.”
Conserving Capital, Utilizing Flexible Payment
Many businesses today would have an immediate need to preserve cash flow, defer or reduce expenses, and relieve capacity strains and delivery delays.
“During this crisis, businesses need help regardless of size of company or industry vertical. IDC recommends that organizations focus on two immediate needs: Conserving capital and utilizing flexible payment options like leasing or as-a-service to meet urgent capacity requirement with limited financial impact,” said Susan Middleton, IDC Research Director, Flexible Consumption and Financing Strategies for IT Infrastructure. “By dedicating $2 billion in financing and leveraging its broad portfolio of flexible payment solutions, HPEFS will help business leaders navigate through the impact of COVID-19 on their markets.”
HPE Financial Services is rolling out several programs designed to address these priorities:
Generating Cash from Existing Assets
HPE Financial Services helps customers unlock value from their own technology through converting existing, owned IT assets into capital that can be applied to purchase new, upgraded technology. This incremental capital resource can help close the gap with IT expenditures or give customers the flexibility to support other parts of their business.
HPEFS can also buy back excess newer generation technology that is no longer needed at the customer’s end. Over the last two years, HPEFS has infused more than $642 million back into clients’ budgets this way.
Deferring or Reducing Expenses
In addition to the HPEFS Payment Relief Program, the team is also enabling a 90-day delayed payment structure to help ease customers’ tight budgets. This payment deferral option is available on new technology purchases, and is eligible for a range of HPE hardware and select software, software appliances, services, and installation packages.
Matching Payments to Production
HPEFS offers customers a phased deployment program that allows them to acquire compute and storage capacity now with the flexibility to configure, test, and stand up systems before paying. This way customers can continue essential business without the restraints that the current crisis can have on their budget cycles or implementation timelines. The deployment schedule can extend out 12 months.
Relieving Capacity Strain or Delivery Delays
HPEFS is offering certified pre-owned HPE technology to address a variety of situations. A full portfolio of data center equipment, such as components, parts, subassemblies, feature upgrades or whole systems, is available off the shelf or custom-configured to meet customer budget or circumstance. This technology meets HPE OEM standards and comes with a standard 30-day warranty, eligible for additional HPE maintenance and support.
Offering Short Term Rentals
Many customers would also experience challenging capacity strain or delivery delays. The most common example of that is companies who are not ready for a work-from-home set up and need technology to empower a remote workforce.
HPEFS can help by renting pre-owned HPE technology from three to twelve months, and new PCs for twelve months. This technology is factory-configured to customer specifications, available with warranty and eligible for HPE Pointnext Services support.