Cisco commits $2.5B in “business resiliency” financing for partners
- 15 April, 2020 06:06
Chuck Robbins (Cisco)
Cisco has rolled out a new round of support incentives to help partners and customers overcome rising Covid-19 challenges, with US$2.5 billion in financing at the centrepiece.
Delivered through Cisco Capital - the vendor’s financial division - the new Business Resiliency program is designed to mitigate cash flow concerns in the channel through “payment holiday” schemes and customer deferral options.
Backed by increased access to technology and support, the initiative targets an ecosystem of more than 60,000 partners globally, with all Cisco solutions - spanning hardware, software and services - confirmed as eligible.
“Cisco's customers and partners are under enormous pressure to keep their businesses connected while remaining productive and secure," said Chuck Robbins, chairman and CEO of Cisco. "Whether it's technology, financing or helping those most in need, Cisco is committed to working together to fight this pandemic on every front.”
According to Robbins, cash flow ranks high as a leading concern for both partners and customers during this current crisis, an observation highlight during a recent special channel report in Asia Pacific: Protecting partners during Covid-19.
In response, the program includes an upfront 90-day payment holiday and allows a customer to defer 95 per cent of the cost of a new product or solution until 2021, with the aim of protecting partner assets and increasing existing cash flow reserves.
Starting in January 2021, customers can then make a monthly payment based on the total financed amount and the remaining term of the financing. With all Cisco solutions eligible, up to five per cent of partner provided services, such as installation, is also included in the plans.
“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,” added Kristine Snow, president of Cisco Capital. “Their success is our priority. The new program is designed with this in mind and will help address some of our customer's most pressing concerns.”
Cisco Refresh has also been launched to provide partner access to the vendor's certified remanufactured product portfolio, which houses a wider range of discounted products and solutions through a pre-owned suite of offerings. Such solutions are also eligible for the Business Resiliency program where 95 per cent of the cost can be deferred until 2021.
“This is a valuable offering by Cisco,” observed Will Townsend, senior analyst at Moor Insights and Strategy. "Through my countless discussions with organisations, balancing cash flow while maintaining robust network operations is critical given the impact of Covid-19.”
Cisco is also assisting partners through free Webex and Security offers enabling them to stay securely connected and productive during this time.