Funding 21^st Century Infrastructure

John Callies General Manager, IBM Global Financing

My Dear Colleagues:

Chief executives today are pondering the state of their enterprises in the context of a fast changing economic environment. The key questions on their minds: How do we create an infrastructure that drives down cost, is intelligent and secure, and is just as dynamic as today's business climate? And how do we ensure we have the right cost structures to do so?

In today's unpredictable 21^st Century economy, dynamic business conditions require a dynamic infrastructure – technology, which at its core can help companies quickly respond to shifts in the external environment. A 21^st Century infrastructure brings together physical, digital, and virtual business assets to optimize end-to-end business performance, reduce costs and better manage risks.

Amidst the current financial crisis that has driven up the cost of capital and tightened liquidity for most businesses, the C-suite's ability to access updated infrastructure solutions has been made more difficult.

However despite this momentary setback in our financial markets, companies must still take those critical decisions to plan, invest, manage and eventually retire infrastructure assets if they hope to survive this crisis over the long-haul.

Such is the current state of business: Enterprises interested in their long-term survival must chart a course towards dynamic infrastructure solutions and model a funding strategy to get them there.

I leave you with a few thoughts, especially as you think about your own businesses and engage in discussions with your clients:

• Plan: Start planning a new infrastructure solution now. Make sure that the technology will match your business needs. Start developing your budget criteria and a timetable for implementation. Despite the tight credit market, there are still financing opportunities available from asset backed lenders, like IBM Global Financing, to help credit qualified companies fund their new 21^st Century technology infrastructures. Financing solutions can help stretch existing budgets, accelerate implementation, improve financial measurements and align costs to pre-determined project milestones.
• Acquire: IBM Global Financing can offer competitive rates and help extract cash from existing technology assets that can be applied to new equipment. IBM Global Financing can also offer distributors and resellers of IBM and non-IBM infrastructure technology specialized commercial financing programs that would help extend payment schedules to vendors as they implement technology infrastructure solutions with their clients.
• Manage: Once installed, your technology financier can help clients manage the equipment right down to the serial number. Additionally, financiers like IBM Global Financing are flexible enough throughout the leasing cycle to facilitate mid-lease upgrades to the latest technology so your equipment never falls behind the curve. IBM Certified Used Equipment&trade business can also help increase capacity with additional equipment for those special projects that unexpectedly arise.
• Retire: As infrastructure equipment approaches the end of its lease, IBM Global Financing's Asset Recovery Services can help take-back equipment, make sure it is disposed of in compliance with environmental law and manage the proper cleansing of data off the storage devices.

John Callies