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IBM Targets Hidden Costs of Acquiring PCs With New PC Management and Leasing Programs


ARMONK, NY - 15 Feb 2005: IBM today announced new programs to help customers significantly reduce the costs of acquiring and managing PCs. The three programs are designed for clients that want to reduce their cost of managing PC equipment by acquiring PCs and services in a package, lease with low monthly payments, or maximize flexibility and predictability with their end of lease options.

IBM is aggressively targeting the growing market opportunity to help customers take costs out of their PC environments, which have become less efficient over time when PCs are purchased, deployed and managed in an ad-hoc manner. The costs of managing PCs can be staggering: a single desktop PC can cost a company several thousands of dollars per year, per employee.

IBM is offering the following three new programs to help clients acquire and manage PCs:

The PC Price Per Seat (PPS) Program combines PC equipment, warranty or maintenance coverage, and other services into one simple, monthly invoice per unit of equipment. IBM offers a wide variety of desktop management services such as installation, rollout planning, help desk, virus management, and asset disposition that can be customized to meet client needs. The equipment ownership remains with IBM, minimizing the client's exposure to disposition concerns. This program also lowers total cost of ownership, reduces initial outlay, and provides more predictable budgeting and enables a strategy for refreshing PCs. Price Per Seat is available to clients needing 3,000 or more IBM PCs.

The PC PerformancePlan is a Fair Market Value lease which offers the most aggressive lease rates from IBM Global Financing. This plan is available for all types of PCs with lease terms up to 48 months. Benefits include low monthly  payments, reduced financial risks associated with asset ownership and technology obsolescence, and savings of up to 14% over purchase. For even greater savings, clients can combine PC PerformancePlan with programs such as IBM's "It Pays to Lease" and receive a 5% cash rebate.

The PC PerformancePlan Plus provides the most predictability during and at the end of a lease. At the time of signing, this offering provides the client with prestated terms for buyout and continuation to ownership, in addition to a return option. It also includes asset substitution, which allows the return of similar machine type/models at end of lease, and provides savings of up to 8% over purchase. The PC PerformancePlan Plus is available on leases with terms from 24 to 48 months.
 
"We looked at our clients' critical needs such as managing PC infrastructure cost and complexity, keeping monthly costs low and having predictable end of lease terms," said Riccardo Forlenza, Vice President, Worldwide PC and Vendor Financing, IBM Global Financing. "The new programs can address these concerns while helping clients save money, make smarter financial decisions and get the latest technology."

As the PC market continues to grow around the world, companies continue to seek leasing options that help them best access PCs they need. The fourth quarter of 2004 marked the seventh consecutive quarter of double-digit growth in worldwide PC shipments. In 2005 analysts are expecting a growth of 10.8% in shipments over the 178 million units in 2004.

The new IBM PC Performance Plan and PC Performance Plan Plus programs are now available in the U.S., Canada, Europe and select Asia Pacific countries today. The PC Price Per Seat (PPS) Program is now available in the US and Canada. It will be available by Special Bid in Europe and will be offered in select countries in Asia Pacific in April 2005.

IBM Global Financing, the world's largest information technology financier, offers businesses of all sizes flexible leasing and financing programs that enable them to acquire hardware, software, and services from IBM and other vendors. IBM Global Financing has a worldwide asset base of nearly US$36 billion and delivers financial services to 125,000 clients in more than 40 countries. For more information on IBM Global Financing, visit: www.ibm.com/financing

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Contact(s) information

My Luu
IBM Media Relations
914.765.6647
myluu@us.ibm.com

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Global Financing
Hardware leasing, software and services financing, commercial financing, inventory, accounts receivable, term loans, acquisition financing