IBM Global Financing

The benefits of financing SaaS

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IT clients increasingly prefer the subscription model of Software-as-a-Service (SaaS) to the traditional fees associated with one-time software charges. According to IDC, worldwide revenue from SaaS will increase from $110B in 2018 to $199B in 2022 representing a compound annual growth rate of 15.8 percent.1

It’s easy to understand why more organizations are turning to SaaS. The benefits can include reduced time to productivity, lower upfront payments and increased scalability. Furthermore, clients may enjoy improved cash flow depending on how they finance their implementation.

It is the standard in the industry for SaaS providers, including IBM, to charge an annual or multi-year up-front payment for the service.  This can pose a challenge to organizations that have budgetary constraints or strategic initiatives competing for funding.

To help clients overcome funding challenges, IBM Global Financing offers competitive rates – for stand alone prepaid SaaS structures (annual or multi-year).  Eligible transactions contain at least 50% new One Time Charge (OTC) software content.

Clients can receive IBM’s best financing offer on SaaS and lock in great prices while enjoying the benefits of paying over time at a competitive rate.  Making predictable payments helps match costs to expected benefits and reduces up-front payments, and financing helps preserve customer’s cash and credit lines for other business priorities.

Clients should not forego the benefits of deploying SaaS just because associated up-front costs challenge their budgets.  Financing at competitive rates is an exceptional tool to break down funding barriers and introduce flexibility in project planning.

For more information on SaaS financing click here or visit Cloud Financing to get more information about payment options for cloud

Herb Schultz

IBM, WW Portfolio Marketing Manager, IBM Global Financing

 

1 IDC Worldwide Semiannual Public Cloud Services Tracker, 2018H1

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