Feeds

HP woos IT shops with leasing deals

Looking to boost fiscal Q1 sales

Internet Security Threat Report 2014

Hewlett-Packard has a new CEO in Meg Whitman, but it has the same fiscal year that ends in October and the same mis-match between its own quarters and those of the bulk of the companies in the world who buy its IT wares. Its major buyers all end their fiscal years in December. What's an IT vendor to do to bump up revenues? Provide generous financing and buy some time as well as pump up hardware sales.

That's precisely what HP Financial Services, the financing arm of the computing giant, has done in the United States and Canada with two new financing deals.

The first is a traditional 90-day deferral program, which allows customers to push off payments on a 36-month lease on IT gear for three months – well into 2012 and next year's IT budget, even though they can take delivery now. This particular financing deal can be applied to any transaction with at least $1,500 in spending. The interest rate of this deal depends on your company's credit rating.

If you plan to spend lots of money, then you might want to sharpen your budget pencil and take a look at the 1-2-3 deferral offer, which is a little different. If you are spending more than $250,000 – what HP calls original equipment cost, or OEC, and that is the price of the gear after you negotiate down from list prices – then here's how the 1-2-3 deal works. You take out a 36-month lease with a full market value (FMV) payout at the end of the three-year term. Heaven only know what gear is worth once it gathers a little dust, so there is a little uncertainty with the deal. Then HP cooks up the financing on the deal so in months 1 through 3 you pay an interest rate of 1 per cent on the OEC charge (that's step one). In step 2, which spans months 4 through 6, you pay 2 per cent of OEC, and in months 7 through 36 (step 3), you pay 3 per cent of OEC.

Both deals cover the same stack of HP wares, including laptop and desktop PCs, point of sale units, thin clients, and digital signs as well as printers and scanners. The entire HP ProLiant tower, rack, and blade server family – which uses x86 processors – can use either lease, but only selected models of the Itanium-based Integrity server line can be financed in this manner. Specifically, you can do a deal with the Integrity BL860 and BL870 blade servers and the Integrity 2600, 3600 and 6600 rack servers.

On the storage front, selected 3PAR, StorageWorks, ProLiant, and LeftHand Networks arrays are covered, and for networking A Series, E Series, and V Series switches and routers can be financed. Various software and services that are generally part of the IT shopping list can also be rolled into the financing deal.

Both financing programs expire on January 31, 2012, which is the end of HP's first quarter of fiscal 2012. ®

Internet Security Threat Report 2014

More from The Register

next story
Bladerunner sequel might actually be good. Harrison Ford is in it
Go ahead, you're all clear, kid... Sorry, wrong film
Musicians sue UK.gov over 'zero pay' copyright fix
Everyone else in Europe compensates us - why can't you?
I'll be back (and forward): Hollywood's time travel tribulations
Quick, call the Time Cops to sort out this paradox!
Megaupload overlord Kim Dotcom: The US HAS RADICALISED ME!
Now my lawyers have bailed 'cos I'm 'OFFICIALLY' BROKE
Euro Parliament VOTES to BREAK UP GOOGLE. Er, OK then
It CANNA do it, captain.They DON'T have the POWER!
Forget Hillary, HP's ex CARLY FIORINA 'wants to be next US Prez'
Former CEO has political ambitions again, according to Washington DC sources
prev story

Whitepapers

Seattle children’s accelerates Citrix login times by 500% with cross-tier insight
Seattle Children’s is a leading research hospital with a large and growing Citrix XenDesktop deployment. See how they used ExtraHop to accelerate launch times.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
How to determine if cloud backup is right for your servers
Two key factors, technical feasibility and TCO economics, that backup and IT operations managers should consider when assessing cloud backup.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Business security measures using SSL
Examines the major types of threats to information security that businesses face today and the techniques for mitigating those threats.