Rackable Systems (RACK) has launched a leasing program to provide customers with more options to finance IT equipment purchases. Vendor leasing programs have become more important as the credit crunch has left many companies with reduced access to financing.
“During this turbulent economic period, companies are looking for alternative ways to maximize their IT expenditures and reduce their initial buying costs,” said Tony Carrozza, senior vice president of worldwide sales and marketing at Rackable Systems. “Our new Rackable Equipment Leasing program allows companies to better manage their cash flow, operate with the latest technology, eliminate overhead, and reduce ownership tax and benefit from a flexible ownership agreement.”
Lending terms used to finance IT equipment have tightened in recent months as default rates have increased. Activity in the $650 billion equipment finance sector dropped 2.4 percent in September, according to the Equipment Leasing and Finance Association, with 0.86% of equipment loans written off as losses, up from 0.48% a year earlier.
“Through 2010, IT organizations will increasingly rely on leasing and financing programs to close the funding gap for necessary acquisitions,” said Joe Pucciarelli, IDC Program Director – Technology Financing and Executive Strategies. “IDC research projects that more than 15 percent of IT equipment delivered in the U.S. during 2008 will be leased or financed, with that percentage growing in 2009 and 2010.”
Server vendors like Rackable and Verari Systems have responded by creating financing programs, seeking to remain on a level playing field with well-heeled rivals like IBM.
The Rackable Equipment Leasing (REL) program will allow customers who acquire data center equipment to lease equipment on a project basis or longer requirements. The REL program also offers services the ability to trade-in existing equipment for credit, along with data destruction and equipment disposal. Rackable says the leasing program may be of particular interest for customers interested in its ICE Cube data center container solution.
Verari launched its Verari Financial Services in June, and last week announced a Green Leasing Program, aligning the program with energy efficiency programs that can lower data center costs.
"This kind of integrated leasing solution mitigates risks across the entire organization, not just IT," said Gerald M. Conboy, VP and general manager of Verari Financial Services Group. "This is particularly important given increasing compliance requirements, skyrocketing data center energy consumption, and a renewed CEO commitment to the environment.”
