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Follow UsAs the global economic scenario is recovering from the slowdown, enterprises have once again started thinking of increasing their IT spend. However, compared to the pre-recession scenario, they are more cautious. How do you look at this changed scenario?
As the economy starts to rebound, business opportunities increase and new technologies like cloud computing gain traction, it’s the perfect time for enterprises, big and small, to consider new and innovative IT investments to help grow business. IBM has a complete portfolio of financing and asset management solutions to enable next generation innovation, including smarter infrastructure, green data centers, smart grids, health information technology and smarter transportation projects.
By financing IT investments with IBM Global Financing, enterprises of all sizes can increase their efficiency, and better manage cash flow and assets, by turning large upfront costs into affordable monthly payments. This helps accelerate their ROI, and preserve cash and credit lines for core business requirements.
In this scenario, what is the role played by IBM Global Financing? How does it benefit the Indian enterprises?
From financing green data center to providing environmentally-compliant disposal of retired IT assets, IGF can help support the company’s green strategy in a way that cuts costs, increases cash flow, and better aligns upfront costs to anticipated project benefits.
In addition, IBM Global Financing can facilitate smart financial decisions at every stage of the IT lifecycle - from the planning phase through equipment disposal. The customized financing options can provide enterprises the financial agility to capitalize on new opportunities and accelerate business transformation, while lowering the costs. This can help enterprises stretch tight budgets, innovate smartly and position the business for faster growth.
Are Indian enterprises smarter enough to use the potential of IT in a creative and more prudent way in their companies? How is IGF helping them in their path of innovation?
All over the globe, creative leaders are re-architecting management systems so that they are based on inclusion, collaboration and transparency. This has never been more important as we work to make our systems instrumented, interconnected and intelligent. India is no exception.
With the rapid pace of business today, organizations need more from their investment than ever before — more accountability, more agility and quicker return on investment. A trusted partner like IGF can help improve the cash flow and deliver better ROI for organizations of all sizes.
What is the vision and mission of IGF and which are the geographies where it has a foothold?
As the world’s largest IT financier, with assets over US$38 billion, IBM Global Financing has an asset base that, were it a bank, would place it in the top two dozen US commercial banks. IGF is delivering financial services to 125,000 customers in more than 55 countries.
IGF provides customizable lease and loan offerings to much of 90 per cent of the Fortune100, as well as small companies with as few as ten employees. Small and medium businesses and large enterprise alike can acquire the business and technology solutions through IGF to create enhanced value and drive profits.
IGF offerings are designed to enable IT organizations to operate in a new economy and mindset that demands high value, transparency, and proof of return on investment. Financing provides access to alternative sources of capital from a stable partner, IBM, thereby addressing capital asset management, business resiliency and flexibility needs.
Where do you see India ten years from now, when it comes to innovation?
Certainly, India has fast emerged as a tech power in recent past. Growth in Indian economy, right infrastructure, tech spurt, and presence of large talent pool is driving this. Innovation is the nation’s single greatest driver of competitive advantage, productivity, economic growth and societal change. It is important to keep the momentum up, since by innovating, we raise the standard of living for all. There is a need to “think collaboratively” and in a multifaceted manner, as this determines who wins and who loses. Innovation begins at the intersection of invention and business insight — and is made valid only when it results in significant business and societal value.
While we have led the world in terms of patent leadership for the past 17 years, as a leader in the open source movement, and are engaged with clients around the world to transform their businesses through the application of smart information technologies, what makes us proud is the value we add to business and society.
Can you elaborate a bit on IBM Global Financing's approach in providing complete financing solutions? And how does it differ from the finance from banking sector?
Financial markets are still volatile and uncertain, liquidity is still tight, and there is a shortage of funding, and higher funding cost. While companies are looking for new financing sources and quicker ROI, financing institutions are averse to unsecured loans.
Many traditional sources of credit are reluctant to fund IT, seeking additional collateral against loans and financing deals. Besides, banks and brokers, generally do not possess sufficient IT industry knowledge to make accurate assessments of fair market values, and may cover their risk with increased financing rates. Banks offer relatively simple loan finance that is secured on a client’s assets.
However, IGF is more than a bank, as it delivers comprehensive, integrated, customized and affordable solutions to unique enterprise IT needs. This helps companies better manage cash, and harvest better ROI while keeping competitive edge.
How do you look at the SME sector in India and how does IGF help it?
SMBs want the same thing as large enterprise clients do: value and innovation. They're also facing the same challenges as larger enterprises. What they lack is the resources to address those challenges. With the economy starting to rebound - small and mid-sized companies are central to the forthcoming recovery - it's the perfect time to consider new and innovative IT investments to help businesses grow.
IBM Financing Advantage offers credit qualified mid-sized companies access to affordable leases and loans for a complete IT solution for IBM and non-IBM hardware, software and services. With affordable low rate financing at competitive rates and flexible terms, these can help SMEs acquire the solution they need rather than the solution they can afford since costs can be less, while preserving cash for core business needs.
What kind of role does IGF play in driving a Green planet?
The green movement is blue about the IT industry: too much power, too much heat and way too much landfill. With short technology cycles contributing to the constant replacement of older systems, disposal is a genuine problem. IBM Global Asset Recovery Services (GARS) offers most efficient, all-green disposal solution, using scalable, reliable processes that prevent re-use and recycling capabilities.
GARS complies with applicable local environmental and disposal regulations and includes buyback at agreed prices, disposal of unusable equipment and data security. Using total disk over-writes, GARS may recover, recondition and reconfigure usable IBM equipment as IBM Certified Used Equipment which offers a great alternative solution for many a business and IT situations.
What is the role of IT CFOs in making enterprise smarter?
CFO can make the enterprise smarter in an era of increased uncertainty. According to IBM’s 2010 CFO study, mounting cost pressures, coupled with the urgent need for more predictive intelligence and greater transparency, are prompting CFOs and their finance organizations to do more than just excel at core finance activities. Rather, they must become expert at providing vital input into enterprise strategy and enabling faster decision making by integrating information and standardizing data and processes across the organization.
In many instances, financing IT rather than cash purchase can make sound business sense. It relieves pressure on cash flow, and enables an IT investment strategy that adapts to changing business circumstances easily and cost-effectively. Besides, financing supports a disciplined approach to prioritizing resource allocation including cost reduction efforts.