economy, IBM Global Financing (IGF) reports that it has seen an
increase in the rate of customers financing its software solutions.
In the first quarter of 2008, IGF financed US$505m worth of
software, an increase of 90 per cent year-on-year. Furthermore,
software financing as a percentage of total IBM volumes increased
nine points to 26 per cent.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
This increase is partly the result of the changing nature of how
technology is accessed in the marketplace, and the fact that the
cost of the product is constant, compared to the declining value of
hardware.
“Software financing presents a new arena where companies can
increase their cash flow, decrease total cost of ownership, and
leverage working capital more efficiently,” a statement at the
company said.
Software financing had traditionally been leveraged for hard
iron technology assets so that lenders could utilise the residual
value of the equipment. But now, it is evidently more popular than
hardware financing.
“IBM is finding that clients are asking for financing solutions
for software in greater numbers,” a statement at the company
said.
“Despite software’s lack of residual value, lenders, like IGF, are
encouraged by this trend, as demonstrated by increased attach rates
and growth for IBM brand software sales.”
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData
