IBM Solutions Supported by IBM Global Financing


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IBM Global Financing

IBM Solutions Supported by IBM Global Financing

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IBM Solutions Supported by IBM Global Financing

At IBM Global Financing we help clients acquire the latest technological solutions and services so they can innovate, grow and become smarter. We do this by providing you with robust financing and asset management strategies—helping ambitious visions become reality. Financing your IT projects integrates all costs and payments in one facility. It turns large, upfront costs into pre-planned, budgeted payments, matching cash outlays with expected benefits and savings.

IBM Global Financing is uniquely positioned to provide clients with significant capital resources to support IBM’s leading technology solutions, extensive industry expertise and talent to address your broad business imperatives.

IBM Global Financing

Why should your business work with IBM Global Financing? Cash View of a Project

In today’s competitive, globally-integrated world, all types of risk can ultimately be expressed in financial terms. Every risk can impact the top and bottom line, or both. As a result, the finance function is getting far more involved in non-financial risk management. This includes the risks inherent in major business and technology initiatives. For example: ●● ●

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Will the initiative yield the expected business and technology benefits? Will it be implemented on time and on budget? Will the transition disrupt your day-to-day operations? Will you get to your Return on Investment (ROI) within the expected time frame? If not, what will be the impact on your organization and its competitive position?

To be able to finance your initiatives, IBM Global Financing provides the financial resources to fund both short- and longterm elements of initiatives to provide a cost-effective means for financing various project elements. We have worked with companies of all sizes, from small companies through global multi-nationals. We will work with you to find the best way to address your unique situation—one that reduces complexity and provides a single solution and financing, including both IBM and, if required, non-IBM content.

Total outlays without financing Total outlays with financing Anticipated savings

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Customized financing with zero net cash outlay turns upfront investments into regularized payments in line with project milestones.

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IBM Solutions Supported by IBM Global Financing

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Consolidate and structure payments in line with your expected project milestones and funding requirements, helping you manage the uncertainties of project timing and cash outlays. Provide for either floating- or fixed-rate financing, with interest-rate protection as required.

The result? You could have zero net cash outlay from the initial installation period to the projected realization of operational benefits with budget certainty. And, your organization can: ●● ●

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Why should CFOs finance with IBM Global Financing? Today, Chief Financial Officers (CFOs) must link strategy to execution as the new era of computing is emerging. Big Data and the convergence of analytics, social, mobile and cloud technologies are rapidly reinventing the enterprise and creating an entirely new basis for competitive advantage, particularly for financial management. Customize the financing for major business/IT initiatives utilizing IBM Global Financing capital, structured within an array of loans and leases for IBM and non-IBM content. IBM Global Financing can preserve your normal working capital and bank lines of credit. By drawing on our proven experience to customize innovative credit solutions, you can: ●● ●

Match cost outlays to anticipated benefits with tailored repayment terms.

Improve critical time-to-business value, because all necessary funding is approved and available, up front. Simplify the process with one financing agreement, one strategic partner and multiple options to meet specific business needs. Finance multiple vendors, if needed. Finance both IBM and non-IBM solution components.

Of course, the best financing strategy for any business depends on your organization’s goals—including financial goals. IBM Global Financing offers a variety of special financing options to address your unique situation: A loan from IBM Global Financing can help affordably acquire the technology you need now, match payment timing with deployment milestones and conserve cash with access to an alternative source of funds. A Fair Market Value (FMV) lease from IBM Global Financing can be a key part of your strategy to shrink your growing IT costs: you pay only for the use of the technology, not its ownership. In fact, an FMV lease in many cases provides the lowest cost option for your IT infrastructure. It can also provide predictable monthly payments, to help lower financial risk compared to large upfront payments and capacity additions or upgrades, often at little or no increase in your current monthly payments.

IBM Global Financing

Computer services company finds cloud is the way to grow. This client wanted to gain the ability to grow its business, but its legacy systems were too complex and costly to scale out effectively. The company’s most popular services are cloud hosting—including file hosting, virtual desktop services, and virtual server hosting. IBM Global Financing facilitated the cloud solution by enabling the client to spread payments over 36 months, with no payments until after a six-month deferral. This approach provided: ●●

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A self-service web portal empowering customers to provision their own servers and storage online. The ability to accommodate business growth over ten years. Reduced maintenance workload by 30 percent.

Engaging IBM Global Financing allowed the client to accelerate the implementation of the project.

A seafood consumer-products company gains an affordable SAP ERP solution to help assure its future growth when it works with IBM Global Business Services. The client needed to implement an SAP Enterprise Resource Planning (ERP) solution and also obtain low cost licenses from the supplier. The client also needed funding at a competitive rate to achieve their vision and they wanted all of their needs met by a single provider. The IBM Global Financing solution provided two different financing contracts, one for the SAP licenses and another for implementation and consulting services. Both of the contracts were financed over a 60–month installment payment plan term. As a result of the engagement, the client gained: ●●

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A new templated, business model that can be reused by its subsidiaries Cost savings through process centralization An affordable option, turning large upfront IT expenses into manageable payments, while balancing costs with future benefits of the project A method to conserve cash and credit lines for their core business Tailored and attractive financial terms and conditions.

Having a trusted IT financing partner that understands your business, with extensive experience in areas of IT transformation and that delivers IT flexibility, is critical to achieving success in these uncertain times.

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IBM Solutions Supported by IBM Global Financing

IBM Global Financing offers clients the ability and experience to match anticipated future savings generated by an initiative with the payment of loans and leases. IBM® Project Financing™ integrates all the elements of a total solution under a single financing umbrella. It is designed for organizations that want to more fully engage with IBM. For example, IBM may consult, design, build, run and, through IBM Global Financing, finance the solution. With single-source, highly customized financing across a project’s entire lifecycle, it is easier to manage both the up-front investment and ongoing operating costs. Global Asset Recovery Services provides comprehensive services for technology assets including remanufacturing, buyback, resale and disposal. We can dispose of your older equipment in compliance with local recovery environmental laws and regulations. You can also receive cash for older marketable equipment to help fund new investments. For some organizations, financing with IBM Global Financing can mean the difference between postponing a strategic initiative and moving forward today.

What’s the difference between traditional “project finance” and IBM Project Financing? Traditional “project finance” is supported financially by the project and not by the sponsoring company. By contrast, IBM Project Financing provides customized and structured loan and lease financing for a wide variety of IT solutions, including IBM and non-IBM content, under the direct credit support of the sponsoring company. Loan and lease payments under IBM Project Financing are financial obligations of the company and payable when due. IBM is not involved in traditional project financing as practiced by banks.

How can IBM Global Financing your organization manage risk? IBM Global Financing can help organizations manage risk in a number of different ways: ●● ●

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Reducing business risk: CFOs can accelerate the introduction of new business processes or technology needed to remain competitive. You can structure unique, customized financing, including IT leases. Reducing technology risk: With leases, much of the risk associated with technology obsolescence is transferred to IBM Global Financing. For example, each item can be renewed, purchased or returned. IBM Customer Centre—a secure, online lease management tool—helps you cut costs by tracking leases and their status online, reducing administrative time and enabling timely decision making. Reducing data security risk: We can provide data disk overwriting services for discarded disk drives. We have an entire business unit—IBM Global Asset Recovery Services—devoted to disposing and recycling end-of-lease assets in an environmentally friendly and compliant manner.

IBM Global Financing

Financing yields better-than-bank rates for a major American utility. Recently a major utility entered into a multi-million dollar Statement of Work (SOW) with IBM for a third-party enterprise application implementation. For each invoice during the life of the SOW, IBM Global Financing set up a payment plan to finance the project with a series of one-year loans (tranches). The first six months of each tranche were at zero percent interest rate, and months 7 through 12 of each tranche had an interest rate.

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Why would your organization finance with IBM Global Financing? Thirty plus years of IT financing expertise enables our exceptional understanding of organizational technology and financial needs. Our comprehensive portfolio of offerings has made us the world’s number one IT captive financier spanning 22 industries. IBM Global Financing serves commercial clients ranging from small businesses to the majority of the Fortune Global 100 companies and can finance hardware, software and professional services—from IBM as well as third-party manufacturers and vendors—in a single financing facility. With a strong financial profile, IBM Global Financing obtains funds at very competitive rates—savings that we share with our clients.

How does your organization get started with IBM Global Financing? Share this document with your executive team to start the discussion within your organization. IBM is ready to meet with you to discuss the kinds of solutions that would best fit your organization—from hardware, software, services and financing.

For more information To learn more about IBM solutions supported by IBM Global Financing, please contact an IBM Global Financing representative or IBM Business Partner, or visit the following website at: ibm.com/financing ­

© Copyright IBM Corporation 2013 IBM Global Financing North Castle Drive Armonk, NY 10504-1785 Produced in the United States of America September 2013 IBM, the IBM logo, ibm.com, and IBM Project Financing are trademarks of International Business Machines Corp., registered in many jurisdictions worldwide. Other product and service names might be trademarks of IBM or other companies. A current list of IBM trademarks is available on the web at ­ ­ “Copyright and trademark information” at ibm.com/legal/copytrade.shtml Not all offerings are available in every country in which IBM operates. References in this publication to IBM products or services do not imply that IBM intends to make them available in all countries in which IBM operates. THE INFORMATION IN THIS DOCUMENT IS PROVIDED “AS IS” WITHOUT ANY WARRANTY, EXPRESS OR IMPLIED, INCLUDING WITHOUT ANY WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND ANY WARRANTY OR CONDITION OF NON-INFRINGEMENT. IBM products are warranted according to the terms and conditions of the agreements under which they are provided. The client examples cited are presented for illustrative purposes only. Actual performance results may vary depending on specific configurations and operating conditions. IBM Global Financing offerings are provided through IBM Credit LLC in the United States and other IBM subsidiaries and divisions worldwide to qualified commercial and government clients. 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. Non-hardware items must be one-time, non-recurring charges and are financed by means of loans. Other restrictions may apply. Rates and offerings are subject to change, extension or withdrawal without notice and may not be available in all countries. Please Recycle

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