HPE uses financing heft to offer payment deferrals, deals as customers manage COVID-19 fallout
Hewlett Packard Enterprise is offering more than $2 billion in financing and cash management programs for customers struggling with the economic fallout of the COVID-19 pandemic.
HPE, which counts its financial services unit as a key cog in its asset management and everything-as-a-service efforts, said the financing is designed to offer customers both large and small and partners better handle cash flow and liquidity issues. One of the initiatives includes a payment relief program to defer payments. HPE's financing efforts are part of a broader COVID-19 response effort.
- HPE falls short on Q1 revenue, with sales declines in compute and storage
- HPE taps AMD GPUs and CPUs for the El Capitan supercomputer
- HPE puts Microsoft Azure alum in charge of Greenlake business
- HPE launches Greenlake Central, hub of its as-a-service efforts
Brad Shapiro, managing director of HPE Financial Services Americas, said the programs are designed to help businesses with liquidity and cash flow. "Customers and partners are looking to preserve cash right now," said Shapiro. "But while they are looking to preserve cash, they also have technology needs due to work from home and online business expansion."
Core programs include:
- The ability to monetize existing IT infrastructure for capital. HPE Financial Services would acquire a customer's owned IT assets and provide capital for new purchases. HPE said it has put more than $642 million in customer budgets with the program over the last two years.
- Customers can acquire technology today and pay 1% of the total contract value each month for the first eight months. That move would defer 90% of the cost until 2021. Beginning in 2021, monthly payments would be about 3.3% of total contract value. The deferral option is available on new technology purchases as low as $5,000. Shapiro noted that this program uses HPE's capital to help its resellers manage their own cash flow. Michael Swan, global director of business for HPE Financial Services, said the deferral programs apply to lease terms ranging from 24 months to 60 months depending on how a customer manages cash flow.
- Pre-owned HPE technology purchases for data center gear, components, parts and systems. Swan noted that the pre-owned HPE technology route has become more popular as customers try to navigate supply chain disruptions.
- Short-term rentals on pre-owned HPE technology in terms of three to 12 months and new PCs for 12 months.