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IBM Solutions Supported by IBM Global Financing
“ You may know IBM as a leading provider of
business and technology solutions—from
design and consulting through hardware,
software and services implementation. But
did you know IBM Global Financing is also
the world’s leading IT financier?”
“ Financing your IT projects integrates all
costs and payments in one facility. It turns
large, upfront costs into pre-planned, bud-
geted payments, matching cost outlays with
expected benefits and savings.”
IBM and IBM Global Financing are
uniquely positioned to provide clients
with significant capital resources, lead-
ing technology solutions, extensive
industry expertise and talent to address
your broad business imperatives.
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IBM Global Financing
Why should my business work with
IBM Global Financing?
In today’s competitive, globally-integrated world, all types of risk
can ultimately be expressed in financial terms. Every risk can
impact the top and bottom line, or both. As a result, the finance
function is getting far more involved in non-financial risk man-
agement. This includes the risks inherent in major business and
technology initiatives. For example:
●
Will the initiative yield the expected business and technology
benefits?
●
Will it be implemented on time and on budget?
●
Will the transition disrupt your day-to-day operations?
●
Will you get to your Return on Investment (ROI) within the
expected time frame? If not, what will be the impact on your
organization and its competitive position?
IBM works with organizations to help manage the risks related
to sourcing, implementing and, through IBM Global Financing,
financing major business and IT initiatives—even potentially
running projects on your behalf. We provide:
●
The business consulting experience needed to accurately
and realistically evaluate, analyze and forecast the scope and
cost of proposed initiatives, as well as the projected business
benefits and ROI.
●
The technological expertise to design, source and implement
solutions over time and in geographically dispersed locations,
to meet or exceed your organization’s stated goals.
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1
10
Total outlays without financing
Total outlays with financing
Anticipated savings
Years
$
Customized financing with zero net cash outlay turns large upfront invest-
ments into regularized payments in line with project milestones.
●
The financial resources to fund both short- and long-term
elements of initiatives to provide a cost-effective means for
financing various project elements.
We have worked with companies of all sizes, from small compa-
nies through global multi-nationals. We will work with you to
find the best way to address your unique situation—one that
reduces complexity and provides a single solution, from design
to consulting, through implementation and financing, including
both IBM and, if required, non-IBM content.
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IBM Solutions Supported by IBM Global Financing
Why should CFOs finance with
IBM Global Financing?
CFOs today are often challenged to finance new business initia-
tives. In a recent IBM worldwide CEO survey, limited funding
was cited as one of the most significant obstacles to innovation.
IBM Global Financing provides deep financial resources to help
you optimize the expected benefits and realize the full value of
business innovation.
Customize the financing for major business/IT initiatives utiliz-
ing IBM capital, structured within an array of loans and leases
for IBM and non-IBM content. IBM IT structured finance is
unique to these projects and therefore preserves your normal
working capital and bank lines of credit. By drawing on our
proven experience to customize innovative credit solutions,
you can:
●
Match cost outlays to anticipated benefits with tailored repay-
ment terms.
●
Consolidate and structure payments in line with your project
milestones and funding requirements, helping you manage the
uncertainties of project timing and cash outlays.
●
Provide for either floating- or fixed-rate financing, with
interest-rate protection as required.
The result? Zero net cash outlay from the initial installation
period to the projected realization of operational benefits with
budget certainty. And, your organization can:
●
Improve critical time-to-business value, because all necessary
funding is approved and available, up front.
●
Reduce potential project risks by working with IBM consult-
ants managing and implementing the projects to ensure proj-
ects will achieve your forecasted results/objectives and budgets.
●
Simplify the process with one financing agreement, one
strategic partner and multiple options to meet specific
business needs.
●
Finance multiple vendors, if needed.
●
Finance both IBM and non-IBM solution components.
Of course, the best financing strategy for any business
depends on your organization’s goals—including financial goals.
IBM Global Financing offers a variety of special financing
options to address your unique situation. The following pages
include just a few examples:
The IBM Enterprise IT Financing Facility can provide a flexi-
ble, multi-year financing agreement from several million up
to hundreds of millions of dollars. It can be structured with
“on demand” terms that let you decide when to draw on the
financing resources and by how much. You choose from multiple
lease and loan structures to meet your objectives and operating,
budgetary, and/or accounting metrics. IBM Global Financing
can globally, as well as within specific countries, provide terms
and conditions for leases and loans, giving your organization
worldwide competitive pricing.
Leading telecommunications
firm finds new way to fund rapid
growth.
Like many companies, this large
wireless company used to budget
and pay cash for its business and
IT investments. It had not linked
procurement with treasury financ-
ing. But after a strategic acquisi-
tion and a planned $16 billion capital expenditure program, it
was ready to explore new options to help fund its plans for
growth.
IBM Global Financing proposed a customized $400 million
Enterprise IT Financing Facility to cover the firm’s current and
future investments in hardware, software and consulting. This
approach provided:
●
Loans for IBM products and services at aggressive floating
rates, based on 30-day LIBOR.
●
A six-year term, straight line, quarterly amortization—
unsecured, no prepayment penalty.
●
Uniform terms, conditions and pricing, with a draw window
that matched the term of the future IT capital expenditures.
With this innovative financing solution, the wireless firm could
easily tap the medium-term financing it needed to achieve
its business objectives. Just as important, it gained critical
business and IT capabilities in time to meet, and overcome,
competitive threats.
Large global bank chooses
IBM Global Financing for
multi-year financing deal.
When the international
bank needed to finance the
operation of its new foreign
exchange settlement service,
it didn’t draw on its own capi-
tal. Although the bank is owned by many of the largest finan-
cial institutions in the world, they chose IBM Global Financing
for its ability to construct a facility with fixed interest rates
over the period, speed of implementation, and flexibility in the
funding arrangements. The bank signed the financing deal to
fund a multi-year outsourcing agreement with IBM Global
Services to develop and manage the new infrastructure. The
outsourcing agreement followed a large-scale project where
IBM helped to design and implement the settlement system.
Said the bank’s acting CFO: “IBM Global Financing obviously
has an excellent understanding of the pattern of the financing
required for IT projects and was very comfortable with provid-
ing a rolling plan of funding that might increase at a later date.”
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IBM Global Financing
When you choose IBM for your project,
and IBM Global Financing provides
financing for your company, you know
we are committed to the project’s success.
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IBM Solutions Supported by IBM Global Financing
IBM Global Financing offers clients the
ability and experience to match future
savings generated by an initiative with
the amortization of loans and leases.
IBM Project Financing integrates all the elements of a total
solution under a single financing umbrella. It is designed for
organizations that want to more fully engage with IBM. For
example, IBM may consult, design, build, run and, through
IBM Global Financing, finance the solution. With single-source,
highly customized financing across a project’s entire lifecycle, it
is easier to manage both the up-front investment and ongoing
operating costs.
An Open Infrastructure Offering (OIO) means one-time negoti-
ation, one procurement process, one monthly invoice and dedi-
cated project executives to help simplify the business processes.
It covers: hardware, software, professional services, maintenance,
financing and disaster recovery. OIO also ensures the flexibility
to make changes to reflect changing business needs—even sub-
stituting new technologies or adding new services as you go.
The OIO approach lets you run your operations more effi-
ciently, while focusing on strategic activities that build value.
You can accurately meet future budget requirements. Any busi-
ness looking to improve productivity, innovate, profit or perform
in a way that meets today’s ever-changing customer demands can
benefit.
For some organizations, financing with IBM Global Financing
can mean the difference between postponing a strategic initiative
and moving forward today.
What’s the difference between traditional “project finance”
and IBM Project Financing?
Traditional “project finance” is supported financially by the
project and not by the sponsoring company. By contrast,
IBM Project Financing™ provides customized and structured
loan and lease financing for a wide variety of IT solutions,
including IBM and non-IBM content, under the direct credit
support of the sponsoring company. Loan and lease payments
under IBM Project Financing are financial obligations of the
company and payable when due. IBM is not involved in tradi-
tional project financing as practiced by banks.
How can IBM Global Financing help your
organization manage risk?
IBM Global Financing, working in support of IBM consultants,
can help organizations manage risk in a number of different
ways:
●
Reducing business risk: CFOs can accelerate the introduction
of new business processes or technology needed to remain
competitive. You can structure unique, customized financing,
including IT leases.
●
Reducing technology risk: With leases, much of the risk
associated with technology obsolescence is transferred to
IBM Global Financing. For example, each item can be
renewed, purchased or returned. IBM Customer Centre—a
secure, online lease management tool—helps you cut costs by
tracking leases and their status online, reducing administrative
time and enabling timely decision making.
●
Reducing data security risk: We can provide secure data disk
overwriting services for discarded disk drives in accordance
with government guidelines. We have an entire business
unit—IBM Global Asset Recovery Services—devoted to dis-
posing and recycling end-of-lease assets in an environmentally
friendly and compliant manner.
Deferred Payment Plan yields
better-than-bank rates, saving a
major American utility an esti-
mated $228,800 a year.
Recently a major utility entered
into a multi-million dollar
Statement of Work (“SOW”) with
IBM for a third-party enterprise
application implementation. For
each invoice during the life of the SOW, IBM Global Financing
set up a deferred payment plan to finance the project with a
series of one-year loans (tranches).
The first six months of each tranche were at zero percent
interest rate, and months 7 through 12 of each tranche were at
LIBOR plus 0.50 percent so the average interest rate over term
was actually better than bank rates. (Fees and spreads vary
by credit rating.)
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IBM Global Financing
Why would my organization finance with
IBM Global Financing instead of a bank
or other IT company?
No other bank or technology company can match IBM Global
Financing for the breadth of our business and technology solu-
tions, combined with our significant capital resources. Banks
don’t live and breathe large-scale business/technology projects
the way we do—so they lack the insight and perspective it takes
to create flexible, even unconventional, financing options at
preferred lending rates. Other IT vendors and consulting
companies must partner with multiple sources to provide the
deep global financial and comprehensive strength IBM Global
Financing can deliver. IBM together with IBM Global Financing
is truly a single-source provider, ready to partner with your
organization on all levels.
Did you know?
IBM and IBM Global Financing offer industry-leading consult-
ing, hardware, software, professional services, financing and
sourcing solutions across a wide range of competencies,
including:
●
Financial Management (FM)
●
Human Capital Management (HCM)
●
Customer Relationship Management (CRM)
●
Strategy and Change (S&C)
●
Supply Chain Management (SCM)
IBM Global Financing is the largest IT lender in the world, with
an asset base of US$35.8 billion and a client list that includes
more than 75 percent of the FORTUNE Global 100 list of
companies. Our comprehensive portfolio of offerings has made
us the world’s premier single-source provider for multi-vendor
IT financing solutions. We can include hardware, software
and professional services—from IBM as well as third-party
manufacturers and vendors—in a single financing facility. With
operations in more than 50 countries, we can also provide com-
petitive rates in international currencies, like the US Dollar or
Euro, and in local currencies when needed. And, with a strong
financial profile, IBM Global Financing obtains funds at very
competitive rates—savings that we share with our clients.
How do I get more information about
IBM Solutions Supported by IBM Global
Financing?
Share this document with your executive team, including your
CIO, to start the discussion within your organization. IBM is
ready to meet with you to discuss the kinds of solutions that
would best fit your organization—from consulting through
hardware, software, services and financing.
Call your IBM or IBM Global Financing client representative or
visit:
ibm.com/financing
Please Recycle
©
Copyright IBM Corporation 2011
IBM Global Financing
North Castle Drive
Armonk, NY 10504-1785 USA
Produced in the United States
June 2011
All Rights Reserved
IBM, the IBM logo, ibm.com, and IBM Project Financing are trademarks of
International Business Machines Corporation in the United States, other
countries, or both. If these and other IBM trademarked terms are marked on
their first occurrence in this information with a trademark symbol (® or ™),
these symbols indicate U.S. registered or common law trademarks owned by
IBM at the time this information was published. Such trademarks may also
be registered or common law trademarks in other countries. A current list of
IBM trademarks is available on the web at “Copyright and trademark
information” at
ibm.com/legal/copytrade.shtml
.
Other company, product and service names may be trademarks or service
marks of others.
References in this publication to IBM products or services do not imply that
IBM intends to make them available in all countries in which IBM operates.
IBM Global Financing offerings are provided through IBM Credit LLC in
the United States and other IBM subsidiaries and divisions worldwide to
qualified commercial and government clients. Rates are based on a client’s
credit rating, financing terms, offering type, equipment type and options,
and may vary by country. Other restrictions may apply. Rates and offerings
are subject to change, extension or withdrawal without notice. Other
company, product and service names may be trademarks or service marks of
others.
GFB03016-USEN-00
Document Outline - Untitled
- IBM Solutions Supportedby IBM Global Fin
- IBMGlobal Financing
- “You may know IBM as a leading provider
- “Financing your IT projects integrates a
- IBM and IBM Global Financing areuniquely
- Why should my business work with IBM Glo
- Why should CFOs finance with IBM Global F
- When you choose IBM for your project,and
- IBM Global Financing offers clients thea
- How can IBM Global Financing help youror
- Why would my organization finance withIBM
- How do I get more information about IBM
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