In response to the COVID-19 crisis, network hardware giant Cisco has today rolled out a $2.5 billion (£2.1 billion) financing plan that gives customers a 90-day payment holiday and allows them to defer 95 percent of the cost of its products until 2021.
The financing plan will be delivered by Cisco Capital, an in-house financing agency. Customers taking part in the scheme can defer the cost of Cisco technology until January 2021, when they will be expected to begin monthly repayments.
The move is the latest by a major hardware vendor designed to offer more flexibility to buyers and incentivise continued spending amid a troubled climate.
See also: HPE Unveils $2B Finance Programme as Vendors Aim to Keep IT Deals Flowing
Kristine A. Snow President of Cisco Capital commented: “Cisco Capital’s goal is to make it easier for customers and partners to acquire the technology they need to keep their businesses running and productive. Their success is our priority. The new Business Resiliency Program is designed with this in mind and will help address some of our customers’ most pressing concerns.”
Cisco has made it clear that all of its products, hardware and services are “eligible” for the offer.
Will Townsend analyst of Networking Infrastructure at Moor Insights and Strategy commented: “Through my countless discussions with organisations, balancing cash flow while maintaining robust network operations is critical given the impact of COVID-19.”
COVID-19 and Tech Funding
Many within the technology industry are diverting money towards COVID-19 relief efforts. Last month Google committed $800 million (£635m) towards supporting small and medium business.
A large chunk of that fund –- $250 million (£198m) – has been ring-fenced for the World Health Organisation. While $200 million (£158m) will be split between NGOs such as the Opportunity Finance Network.
Google CEO Sundar Pichai wrote that they are also creating: “$340 million in Google Ads credits available to all SMBs with active accounts over the past year. Credit notifications will appear in their Google Ads accounts and can be used at any point until the end of 2020 across our advertising platforms. We hope it will help to alleviate some of the cost of staying in touch with their customers.”
The Intel Foundation has pledged £3.2 million ($4m) towards COVID-19 relief efforts in communities were Intel has an established presence. This follows a year in which it reported a net income of £17 billion ($21m)
The money will be donated to charity organisations and community foundations that are helping to ease the pressure of the COVID-19 outbreak by providing people with food, shelter and medical equipment.
Areas expected to receive some of this funding are six US states – including California and Texas – while internationally it will send money to India, Ireland, Mexico and Vietnam. Intel has named 13 locations that it expects to send money to which – if evenly spread – would see each location receive just under half a million dollars each or £376,801.
The United Nations has estimated that COVID-19 is going to cost the global economy up to $2 trillion this year alone.
At the end of its fourth-quarter in 2019, Intel reported a revenue of $20.2 billion (£16.4m) up eight percent year-on-year, while its total revenue for the year was $70 billion (£57bn). For 2019 Intel reported a net income of $21 billion (£17bn).