Hewlett Packard Enterprise (HPE) announced that HPE Financial Services is designating more than $2 billion in financing to help customers with their financial challenges stemming from the COVID-19 crisis.
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 coronavirus epidemic.
The $2 billion 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.
HPE said customers can acquire the technology they need today and pay only 1 percent of the total contract value each month for the first eight months, deferring over 90 percent of the cost until 2021. Beginning in 2021, each monthly payment would equal approximately 3.3 percent of total contract value.
Irv Rothman, president and CEO of HPE Financial Services, said: “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.”
Research agency IDC recommends that organizations focus on two needs: Conserving capital and utilizing flexible payment options like leasing or as-a-service to meet capacity need with limited financial impact, said Susan Middleton, IDC Research Director, Flexible Consumption and Financing Strategies for IT Infrastructure.
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.
HPE Financial Services said this incremental capital resource can help close the gap with IT expenditures or give customers the flexibility to support other parts of their business. HPE Financial Services can also buy back excess newer generation technology that is no longer needed at the customer’s end. HPE Financial Services has infused more than $642 million back into clients’ budgets this way over the last two years.
HPE Financial Services is also enabling a 90-day delayed payment structure to ease customers’ budgets. This payment deferral option is available on new technology purchases, and is eligible for HPE hardware and select software, software appliances, services, and installation packages.
HPE Financial Services 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. The deployment schedule can extend out 12 months.
HPE Financial Services 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.