Last week, HPE announced that HPE Financial Services (HPEFS) is offering $2 billion in financing and new programs for customers and partners who are taking a considerable hit in the quarantine and beyond. In the past few weeks and into the rest of the month, companies are moving employees to WFH, revenue is going to zero or at least much degraded, and budgets are suffocating companies who are dealing with the change in the economy.
Many infrastructure companies like HPE continue to step up and help service better WFH (work from home) experiences. It may sound odd categorizing HPE as enabling WFH, but VDI and app streaming are very much to enable the safest and most secure WFH experience.
After companies have transitioned their employees to WFH, the next phase is to stay in business by protecting assets and making the correct financial decisions; financial decisions that will keep businesses alive in the current unpredictable economy. HPE’s announcement is to help customers deal with these strains and soften the blow. Let’s dive into what HPE announced.
HPEFS payment relief program
The difficulty with moving to a WFH business is not as much the transition of workers to home as it is transitioning assets and IT infrastructure to a secure and manageable spot. Businesses most likely don’t have the IT infrastructure to transition to a WFH environment, and as budgets become tight, it is easier to cut employees than to pay for new technologies that allow for a better WFH environment. HPEFS’s $2 billion financing goes towards fixing these issues with programs transitioning to this new work environment and covering the cost.
HPEFS says its payment relief program lets customers acquire new technology today and pay 1% of the total contract value each month for the first 8 months so that companies have to pay less than 90% of the total cost until 2021. In 2021 companies will pay 3.3% of the total contract value. HPEFS also says it is allowing a 90-day delayed payment structure for new technology and a range of HPE hardware, software, software appliances, services, and installation packages.
I think this cushion of payment and time to pay is great for companies that are in the process of moving assets to a WFH environment. It is not easy to take a whole business infrastructure and transition it somewhere else, especially when the technology and the money to get that technology isn’t there. For a lot of companies neither is available, and this is true for HPE’s large and small customers.
HPEFS has multiple options for varying degrees of need
Many businesses major deficits because of the quarantine, with some going out of business. On the other hand, some companies are seeing an enormous influx of business because of a higher need and demand for their business, like healthcare and schools.
HPE says it is helping customers prioritize there IT infrastructure and solutions with financing options that help in various ways. HPE’s customers are variable in size and need so HPE’s solutions needed to be scalable and personalized.
HPEFS will help customers convert existing IT assets into capital for newer technology or to move that capital to parts of a customer’s business that needs it. This is something HPE is familiar with doing and has found success in. HPE says, over the past 2 years, it has helped customers put $642 million back into their budgets. By converting IT assets to capital, companies can be more flexible with where they want to put that capital.
Likewise, HPEFS says it is offering a phased deployment program for customers to acquire compute and storage capacity before paying. Customers can configure, test, and stand up systems without having to worry about implementation timelines and budget cycles. The deployment schedule can extend out 12 months. I think this program will be great for customers who are new to the WFH transition, as well as companies who have seen an influx of business related to the quarantine. It is for companies that don’t have the budget to scale but need to respond to the influx of business.
HPEFS is also offering certified pre-owned technology that customers can buy with an option for short term rental. HPEFS says it is a full portfolio of data center equipment, such as components, parts, subassemblies, feature upgrades or whole systems. HPEFS says these offerings are available to be configured to customer specifications or off the shelf. HPEFS also says customers can rent new PCs for twelve months. I think these rentals and pre-owned technologies are going to be incredibly useful to companies who temporarily need a remote workforce and companies that have a workforce on the frontlines helping to fight COVID-19. Healthcare and education customers may not need the IT infrastructure long-term, especially if they are not ready for a permanent remote workforce.
I have seen first-hand how the coronavirus quarantine has impacted companies. Many companies, large and small, have struggled to get through financially and in the transition to a WFH environment. Most companies are in the process of making second cuts to ensure financial health.
HPEFS’s $2 billion financing and new programs is an incredible opportunity for companies to have breathing room through these times. HPEFS’s payment relief program will give many companies the breathing they need with a generous amount of time to recover. I think it will have such an effect on companies that those second and third line of cuts are going to be far less damaging. I also think HPE is doing a great job of putting the hope back into these companies who didn’t if they were going ever to recover. HPE has done a great job of reminding us that we are all in this together and seems to be ahead on the curve here.
Note: Moor Insights & Strategy writers and editors may have contributed to this article.