Hewlett Packard Enterprise announced that 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, 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 can be a safety buoy for many 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.”
Many businesses today 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.”
HPEFS is rolling out several programs designed to address these priorities:
HPEFS 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.
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.
