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NORTH CASTLE, N.Y. - 07 Dec 1999: -IBM Global Financing announced today that it provides IT financing and leasing solutions to 95 of the 100 largest companies in the United States.(a) Nabisco Inc., Dow Chemical Co. and Aetna are among the many U.S. companies who rely on IBM Global Financing, the world's largest IT financier. As more companies are deciding to implement a broad range of IT solutions such as e-business, customer relationship management and enterprise resource planning, financing and leasing of hardware, software and services are becoming a more important part of their business strategies. Benefits these companies are seeing include cost savings and information technology asset management and replacement.
Leasing in particular has become a rapidly growing trend. In 1998 alone, IBM Global Financing initiated more than $39 billion in leasing and financing originations on a worldwide basis for its customers. According to a recent study conducted by the Equipment Leasing Association (ELA), computers are the most commonly leased piece of equipment in the U.S. and GartnerGroup reports that 50 percent of all IT equipment is leased.(b) Many companies are deciding to lease rather than purchase IT equipment to improve cash flow, better manage and track their assets, avoid computer obsolescence issues and eliminate the hassle and expense of equipment disposal.
"In addition to the financial benefits companies gain by leasing, more and more companies are also seeing business benefits," comments Joseph Lane, general manager, IBM Global Financing and president, IBM Credit Corp. "Leasing enables companies to better manage their desktop and mobile technology cycles, as well as achieve more control over IT investments."
At the New Jersey-based Nabisco Corp., technology upgrades and flexibility were major requirements, prompting a decision to lease rather than purchase more than $50 million in computer hardware through IBM Global Financing. The equipment included three IBM S/390 servers, seven IBM RS/6000 servers, one IBM RS/6000 SP system and 25 IBM AS/400 servers, as well as 8,000 IBM PCs. Leasing as opposed to purchasing its IT hardware helped Nabisco to achieve a cost savings of up to 20 percent, according to Joseph Beggs, vice president, Enterprise Operations, Nabisco.
"As we continue to implement new software applications, we are constantly faced with the challenge of outgrowing our IT platforms," said Beggs. "IBM Global Financing's leasing option provided us with an ideal solution. IBM offered us the easiest and most cost-effective way to upgrade during mid- and end-of-lease, a flexibility that no other financing vendor was able to provide."
IBM Global Financing, the largest IT financier in the world, offers customized leasing programs for hardware, software and services, as well as a broad array of asset management services to customers in more than 42 countries. In addition, IBM Global Financing provides commercial financing solutions, including inventory financing, accounts receivable financing and acquisition financing, to a variety of customers within the IT channel and beyond. In the United States, IBM Global Financing Offerings are provided through IBM Credit Corporation. Visit the IBM Global Financing home page at http://www.ibm.com/financing.
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(a) According to 1998 revenues of U.S. companies.
(b) Gartner Group 1999
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Hardware leasing, software and services financing, commercial financing, inventory, accounts receivable, term loans, acquisition financing
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