HP announces new financing and leasing options through an expansion of their partnership with HPE Financial Services, and a new partnership with global financing firm DLL Group. They also indicated more financing partners will be added.
Deborah Baker, Head of Worldwide Leasing and Financing at HP
Today, HP Inc. is announcing it has expanded its financing and leasing options, for channel partners and customers, by moving to a multi-vendor model for financing. That general strategy was laid out back in March at the HP Reinvent partner event. Now, however, the two initial strategic partners are being announced: HPE Financial Services, and the global finance company DLL Group.
“This is the next step as we proceed with our strategy around multi-vendor finance,” said Deborah Baker, Head of Worldwide Leasing and Financing at HP. “It supports that by expanding leasing and financing options for both partners and customers, with an extended relationship with HPE, and a new relationship with DLL.”
Baker emphasized that as HP transitions to an Xaas [Everything-as-a-Service] services-led model, around more complex sales, this type of re-orientation of their financing became essential.
“The reason we are bringing in global strategic partners like this is because they are the experts,” she said. “They will partner with channel partners and provide education around complex sales which require complex structures. They will also have conversations with end user customers.”
Baker emphasized that the transition from a transactional to a contractual sales model with longer-term leasing or financing creates stickiness with the end user customer.
“When a payment solution is included in a deal, transaction size is higher, discount rates are lower, and margins are thus higher,” she said.
There is considerable flexibility in how the models will work.
“Payments can be sent to the finance partner or the reseller, and there are a number of different payment structures that can be used,” Baker indicated.
“Customers today are relying on partners more heavily, so it’s a more sophisticated sell which lends itself better to financing,” said Rick Trobman, President of the Technology Solutions Global Business Unit at DLL. “We want to make it as easy as possible for customers and partners to get access to the financing they need. The goal is, ultimately, to make it as easy as a cash sale.” He did acknowledge that remains a goal, and that they aren’t there yet.
“Our entire business is based on partnering with manufacturers, distributors and resellers,” Trobman commented. “We have a full services capability, with 1.2 million contracts under management, from very small companies to the Global 50. We believe our value proposition is focused on two key things – industry specialization, and the move from data centre and software financing to device cloud and service financing.”
The HPE relationship sees the companies’ existing partnership agreement extended through 2024.
“The extension of our agreement will keep the partnership going well into the future,” said Paul Sheeran, VP and Managing Director EMEA, Worldwide Channel Leader, HPE Financial Services. “We can bring a compelling offer to the market and help customers to consume technology in a smart innovative way.”
“We will continue to enhance the financing experience for the channel,” Baker said. “We plan to extend the multi vendor model in 2020 with appropriate regional partners.”
