HP Continues Shift to Contractual Model with New Financing Model
HP Inc. announced today that it’s expanded its financing and leasing options for channel partners and customers.
Through an extended partnership agreement with HPE Financial Services (HPEFS) and a new strategic program with global finance company DLL Group (DLL), the company says that its HP Integrated Financial Solutions will help accelerate and enhance customer financing and enable channel partners to grow their services-based businesses.
Deborah Baker, head of Worldwide Leasing and Financing at HP, commented: “As HP becomes more aggressive in its shift to a services-led model, financing is a capability we are prioritizing and integrating into more of our solutions. We strongly believe the more innovative our payment solutions are, the more likely we are to secure new business and maximize refresh opportunities.”
Leading the Shift to Services
As the industry increasingly moves to XaaS (Everything-as-a-Service) models, leasing and financing underpins HP’s approach to contractual selling, helping the company accelerate and augment services and solutions.
According to HP, by moving to a multi-vendor financing model with both HPEFS and DLL, HP Integrated Financial Solutions will help channel partners secure recurring revenue from their client base and offer more competitive payment options resulting in stronger customer engagement and the ability to bundle products and maximize opportunities.
Rick Trobman, president of the Technology Solutions Global Business Unit at DLL, commented: “We are thrilled to collaborate with HP, and to help HP’s partners deliver compelling customer payment options. HP´s strategy to evolve toward contractual service models fits perfectly with DLL’s life-cycle financing offers and our ability to help channel partners in bundling HP products and services into customer solutions. Customers now expect flexible options for how they leverage technology to collaborate and make agile business decisions.”
Since 2015, HPEFS has been a trusted HP financing partner, and will remain so, supporting HP’s direct led sales with public, corporate and enterprise business customers, its Graphics and 3D businesses globally, and its indirect Managed Print Services (MPS) business in EMEA (Europe, Middle East, Africa). HPEFS is also HP’s sole partner for North American and Latin American markets. The three-year extension to the partnership agreement is said to reinforce the commitment and value the two companies can provide to HP’s customers and partners.
“Big or small, customers today want options for workplace tech: they want to be able to use vs. own, and consume as a service, ”said Paul Sheeran, VP and managing director EMEA, Worldwide Channel Leader, HPE Financial Services. “They also want a more sustainable approach to IT. HP is clearly leading the way in that space, and HPEFS financing and circular economy solutions are completely aligned to this ambition. With the extension of our partnership agreement with HP through 2024, we look forward to continuing to bring value to partners and customers, so they can achieve their goals – business and sustainability.”
HP plans to extend the multi-vendor model in 2020 with the addition of new local and regional finance partners to ensure country coverage across emerging markets.