A Software Insider's Point of View

Vendor Financing Options Provide a Key Weapon in Battle for Tech Spending
On June 28th, 2008, Infor and IBM Global Financing (IGF) announced a worldwide customer financing program for Infor customers. With the worsening global crunch on credit, this program provides Infor’s customers with:

• Access to a line of credit for key tech investments. Similar to other IGF deals, the program includes more than just Infor’s entire line of business software. Other eligible items include software, services, hardware, and maintenance.
• Flexible payment options. Customers can spread traditional up-front payments over time. Flexible payment plans for loans or lease extend up to 60 months. Interest rates are country specific.

Key facts about the deal:

• Geographies: All
• Products: All products, No IBM hardware or software required
• Length of program: Up to 5 years, typically 24 to 36 months
• Interest rates: Country specific
• Partner eligibility: Open to all partners
• Program inclusion: software, services, hardware, and maintenance.

The bottom line.
Vendor-led financing options and payment alternatives provide users with opportunities to avoid up front payments and efficiently deploy capital. While financing options do not address the issues of recurring costs for support, upgrade, and hardware infrastructure, the bundling of professional services, hardware, and other related software offerings provide a compelling business case to choose one preferred IT vendor while deferring capital outlays. Financing will continue to prove to be the game changer in this consolidating and competitive software market.

For more details on how other vendors have accomplished financing options see the Forrester Report from August 29, 2006,”Assessing New Software Vendor Financing Options” .

Your turn.
You’ve heard my view, but I’m looking to see how you’ve used vendor financing and if you see this as a game changer or not. Looking forward to your reply.