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Generating Demand IBM Global Financing Infrastructure Worldwide

4 smart ways to boost your IBM Power Systems sales now!

According to a recent study from IDC, 79 percent of US companies that acquire equipment from a Channel Partner claim that the availability of leasing and financing impacts their company’s choice of vendor.1

IBM Business Partners selling IBM Power Systems can add leasing and financing from the world’s largest IT captive financier, IBM Global Financing. Offering financing as part of your proposal can help you get on more short lists and ultimately win more deals.

Four smart ways to sell more IBM Power Systems solutions with IBM Global Financing:

1- Close deals now by offering your clients payment deferral to 2019.

    • Sometimes your client’s budget may run low at the end of the year, or it’s needed for other projects. Postponing the first payment until the next budget might be a great trigger to help you close deals. Payment plans come in several choices for Power Systems and other IBM and non-IBM hardware, software and services. There are even 0 percent interest options for shorter terms, and competitive interest rates for terms 12 – 60 months. During the fourth quarter, you can offer plans with a first payment in 2019. While payment plans present fewer advantages compared to a true lease, a payment plan does help spread payments over time, and reduces upfront payment.

     
    2 – Increase your clients’ payment options by offering a lease for the Power server.

      • With an IT lease, clients can use the equipment on premises for a monthly fee over a specified period without having to own it. A Fair Market Value (FMV) lease from IBM Global Financing helps spread the cost of the Power server over the use period, often with no upfront payment. Leases also promote sound asset management principles for most clients. And they offer an excellent opportunity to create client loyalty and repeat business for you after the lease ends. The migration to newer technology can often be done with a renewal or continuation of the lease with little or no change in monthly payment. Additionally, the Power Exchange Program is a side-by-side migration program for upgrades, which may present extra benefits for both you and your client.
      •  

      • A Fair Market Value Lease provides a predictable, low-risk approach to building IT infrastructure. It provides minimal impact on capital budgets, while preventing technological obsolescence. Leases from IBM Global Financing also provide an opportunity to add capacity during the lease time and with some technology even upgrade to a new model. At the end of the lease term, businesses can renew or extend the lease, buy the equipment or return it. The financial benefits might be up to a 12 percent reduction in the total cost of ownership, resulting in increased cash flow.2

       
      3 – Give your clients more buying power to move to IBM POWER9 .

        • You can help your clients recover residual value from their older technology servers to use toward new acquisitions or other IT expenses. There’s currently a trade-in offering in market for several IBM POWER8 scale-out servers—an excellent opportunity to move your clients’ technology to POWER9 before the end of the year.

         
        4 – Offer an alternative for clients who want to stay on older Power technology.

          • There are situations when clients need more capacity but won’t move to POWER9 because they need to maintain existing applications or infrastructure. This scenario is an opportunity for you to propose an IBM Certified Pre-owned POWER8 or older technology solution. Pre-owned Power servers from IBM are refurbished with only genuine IBM parts and quality inspections are made to IBM manufacturing standards. Selling IBM Certified Pre-owned servers can help you win deals where new Power technology isn’t an option—and it can help improve your gross profit.

           
          I encourage you to learn more about these IBM Global Financing solutions for Power Systems to ensure you have the most effective payment options available3…and be the chosen vendor for your clients.

          Steve Nichols
          Director, Client Financing
          IBM Global Financing

           
           

          1 IDC, “Why the Availability of Leasing and Financing Matters,” Doc # US43606618, March 2018

          2 “Financial & Strategic Benefits of IBM Global Financing Flexible IT Financing Options”, Dr. Stephen Timme, FinListics Solutions, October 2018.

          3 Rates and availability are based on a client’s credit rating, financing terms, offering type, equipment and product type and options, and may vary by country.

As Director, Client Financing, Steve is responsible for all aspects of IBM Global Financing’s Channel Financing business, inclusive of strategy, sales execution, and partner enablement. In addition, he has ownership of IGF’s OEM financing business, including our Mobility financing practice, vendor relationships, and Global Client leasing portfolio.

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