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HPE Adds $2 Billion in Financing to Ease Coronavirus Economic Pressures: Page 2 of 2

The new credit is designed to help partners keep business flowing despite rampant hesitancy among their clients to spend money in a stalled economy. By Rich Freeman

Companies with urgent but temporary hardware requirements, including those with employees in sudden need of notebooks and other PCs due to coronavirus-related “stay at home” orders, can now rent pre-owned technology for three to twelve months or new devices for twelve months. Rented equipment is factory-configured to customer specifications, available with warranty, and eligible for HPE Pointnext Services support.

“We’ve done some short-term rentals in the past around data center equipment, but short-term rentals on PCs is a new offer and is obviously very specific to the crisis,” Eberding says.

An additional payment option introduced before the COVID-19 outbreak, called the phased deployment program, allows businesses to acquire a year’s worth of HPE systems now but pay only for the portion of those products they’re using at any given time. A customer who expects to need 10 servers in the next 12 months, for example, could deploy all 10 devices now, but pay only for the two they need today and gradually begin paying for the rest as extra capacity is required.

“The customer doesn’t start making payments on the equipment until they start to use it in production,” Eberding says. “They have 12 months to turn it all on and begin to pay for it.”

Many of HPE’s new financing programs, including the accelerated migration offering and short-term rental plan, bear a strong resemblance to programs announced by HP Inc. last week, mostly because HPE Financial Services has handled both vendors’ credit needs since their split in 2015.

HPE’s $2 billion credit infusion arrives at a time of declining outlays on back office infrastructure due to rising economic anxieties inspired by the coronavirus pandemic. IDC expects server revenues to dip 3.4% and storage system spending to drop 5.5% in 2020.

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