Recession prompts great financing deals from IT vendors
An IT leasing agent recently told me that business has actually picked up in the past few months, as a result of the credit crunch. Those leasing firms that still have access to capital are finding buyers more willing to consider financing, where they might have done purchase deals in the past.
Now, major IT vendors are getting in on the act as well. Vendors that have access to capital are offering financing on attractive terms in order to get prospects to close deals.
An article this morning on CFO.com mentions Dell's latest offer:
Dell last week offered its zero-percent deal for "qualified large businesses" that lease Dell and EqualLogic hardware for 12 to 48 months. The company is also allowing "best credit" large businesses defer their payments for three years if they buy at least $40,000 worth of hardware by January 23, 2009.
Microsoft is taking a similar approach in pushing its Dynamics line of ERP systems:
Microsoft, for example, is promoting the zero-percent rate for new customers of its Dynamics ERP and CRM systems whose purchases total between $20,000 and $1 million. The deal must be made before March 20, 2009. Brian Madison, Microsoft Financing's general manager, says he can't yet specify numbers on how many clients have been granted the low rate since the offer was made in mid-November. He told CFO.com the "lending approval rates have been in line with, or better than, industry norms."
The article also mentions SAP as a vendor making aggressive financing offers.
Financing options for enterprise systems deals--whether financed by the vendor, or by a third-party--are often a good approach for organizations to conserve cash and improve the timing of costs and benefits. The aggressive terms currently being offered by certain vendors only makes this option more attractive. If you are about to negotiate a new deal, be sure to ask about financing options.
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