a new financing relationship with Infor, the enterprise software
provider.
The Worldwide Customer Financing Program will enable customers
to finance Infor’s software, complementary hardware and service
products from around the world through IGF. Under the terms of the
agreement, Infor’s channel partners can also offer financing to
their customers through IGF.
Go deeper with GlobalData
“Most organisations today walk a narrow line between preserving
day-to-day cash flow and making fiscally prudent investments to
improve their business,” said Robin Pederson, chief operating
officer of Infor. “The expansion of our relationship with IBM will
help to make this decision easier.”
The move comes as IGF begins to lease software. This form of
financing has traditionally only been leveraged for hardware
technology assets.
Customers are also starting to look at financing options for
software purchases as the economic downturn bites.
IGF worldwide financed $505m of software volumes during Q1
2008, up 90 per cent year on year. Software attach rate was up 14
points year on year and software financing as a percentage was up
nine points to 26 per cent.
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By GlobalData“The increase in software financing can largely be attributed to
the changing nature of how technology is accessed in the
marketplace,” noted an IGF spokesperson.
While the price of hardware declines, the cost of software
remains steady.
The spokesman added: “Therefore, software financing, despite its
lack of residual value, presents a new arena where companies can
increase their cash flow, decrease total cost of ownership, and
leverage working capital more efficiently. Cash conservation is
becoming increasingly important during these uncertain economic
times, making financing solutions for all aspects of the business a
pivotal play.”
