Microsoft Financing Fact Sheet
07/2010
Microsoft Financing
Since 2003, the Microsoft Financing program offers world-class service to business customers with simple, convenient and affordable ways to acquire Microsoft’s products, IT services and hardware.
News
Microsoft now offers world class IT financing solutions that help partners close more deals and improve cash flow by offering customers affordable terms on software and solutions through Microsoft Financing. Two new developments help facilitate this solution for partners.
Microsoft recently announced expanded relationships with multiple financing providers to offer world-class IT financing solutions under the Microsoft Financing brand in 15 countries. By expanding our financing providers by country and business sector, Microsoft provides partners with a way to help customers secure a convenient and easy way to sell payment options that cover the total IT solution and help guide customers to the Microsoft solutions they need to grow their business.
Global Financing Providers:
· Banc of America Leasing & Capital, LLC (B of A)
§ (Enterprise Customers, US)
· BNP Paribas Lease Group (BPLG),
§ (Small & Mid-sized Customers
France, Germany, Switzerland and Italy)
· De Lage Landen Financial Services (DLL)
§ (EPG & SMS&P – Australia and New Zealand, Benelux, Spain, UK, and Canada
Federal Government, US)
· General Electric Capital Corporation (GECC)
§ (Public Sector, SLG, US)
· PNC Equipment Finance (PNCEF)
§ (Small & Mid-sized Customers, US)
· Societe Generale Equipment Finance (SGEF)
§ (Enterprise Customers, France, Germany, Switzerland and Italy)
· Century Tokyo Leasing
§ (Enterprise Customers, Japan)
· Showa Leasing
§ (Small & Mid-sized Customers, Japan)
Second, Microsoft Financing launches a new SmartPay portal so partners can obtain quotes for customers, and submit and track applications. The SmartPay portal makes the financing process simple for partners and includes a wealth of tools and resources for partners to understand the offerings and how to effectively position them with customers.
Partner Benefits:
Increase incremental revenue opportunities to drive more sales, through larger deal sizes, selling more of the stack, closing deals faster, and reduced discounting.
Revenue growth - When flexible, affordable financing options are available, IT implementations are faster and larger in scope. Top-line revenues and bottom-line profits can increase, because partners can minimize discounting.
New sales opportunities - Partners can engage more deeply with their customers and facilitate the acquisition of a total technology solution, including their organization’s consulting services while strengthening their business and customer relationships.
Reliable cash flow - Partners are paid in full within days (sometimes hours) of approving the contract.
Shorter sales cycles - Streamlined contracts mean that customers can manage their IT costs as one investment with enhanced self-serve capabilities.
Research indicates that partners want to align customers with a financing “how to pay” solution that are simple and easy to communicate via sales tools.
Ø Opportunities for business growth over the long term.
Ø Positive return on partnering investment.
Ø Profitable service up-sell opportunities.
IDC Statistics
The IT leasing and financing market in the top 25 countries will reach $105.2 billion in 2010 and $124.3 billion by 2013. The increase in software and services financing continues as these two segments will comprise 48% of the worldwide market in 2010.
· The leasing and financing forecast for the packaged software segment remains healthy with a CAGR of 9.3% through 2013. The forecast growth will be driven by the continued investment in software applications that will reduce management complexity and meet regulatory requirements. Additionally, IT shops' demand for Microsoft 7 is forecast to take place in 2011, fueling the demand for leasing and financing.
· Through 2010–2013, capital markets are expected to remain constrained. As a result, IDC believes that the option of using other sources of capital will prove attractive to many IT organizations and favor providers that systematically offer IT leasing/financing options to customers — even those that have historically sourced business capital from other venues.
Partner Quotes
· “We had one customer who was deliberating for six months. We introduced Microsoft Financing into the conversation and they signed the deal two weeks later.” -Steve Hall, Chief Executive Officer, District Computers Read case study
· “Having access to specialist funding facilities via Microsoft Financing provides us with a distinct competitive advantage.”-James Crowter, Managing Director, Technology Management
· “The flexibility of Microsoft Financing enables us to increase the order value, with options that the customer can benefit from today, but effectively pay for by spreading the financial load over several years.” -Neil Langridge, Marketing Manager, Windowmaker
Customer Quote
“When we approached Microsoft Financing, we were impressed by the flexible payment options it offered, we were able to come to an arrangement that made excellent financial sense for IMG Group.” -Ian Carter, Chief Technical Officer, IMG
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