19/03/2020 | Written by: Dave Martens
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Government organizations look for long-term financial certainty, including when it comes to IT investments. Such certainty can only be attained by incurring extra initial costs, for example by purchasing software licenses for the entire length of the project, plus a generous estimate of the indexation costs. With IBM Global Financing, this is no longer necessary.
Government organizations are bound to IT investments for the entire length of the procurement process, which generally means a minimum of five years. This can create a problem when purchasing IT, given that hardware and software are generally sold based on annual licenses. Moreover, IT from the cloud – frequently offered on a pay-per-use basis or in the form of a short-term subscription – is becoming more and more popular. Examples include Software, Infrastructure and Platform-as-a-Service solutions that offer the flexibility, security and ease of management customers require.
Fixed price, payment in installments
With IBM Global Financing, government organizations can purchase IT solutions at a fixed price for five years or more and pay for them over time. IT investments can be spread out, avoiding unexpectedly high annual indexation. This type of payment scheme is available for any time period and for every IT solution: hardware, software and services. IBM Global Services can adapt the agreement to accommodate any individual situation. In addition, IBM Global Financing offers deferred payment schemes for service provision, products and software licenses that government organizations purchase directly from IBM.
In addition to annual payment schemes, government organizations can also finance IT at IBM Global Financing, which offers a variety of different IT solutions, contract periods and conditions. Both payment schemes and financing agreements can be concluded directly with IBM or via an IBM Business Partner. Such financing is not only cheaper for the government organization itself, but also for the reseller. IBM Business Partners enjoy purchasing advantages and pay lower indexation costs for long-term contracts.
How much IT budget do we have left? Can we still purchase new hardware this year or do we have to put off investments? With IBM Global Financing, government organizations pay annually in advance. Not only does this mean that the budget is always crystal clear; it also reduces the financial threshold for launching new IT projects. Suppose an institution wants to make several different investments simultaneously but lacks adequate budget to cover them. IBM Global Financing even offers a solution for this. After all, institutions no longer need to choose where they will and will not invest. Last but not least, agencies can bring their expenditures and income in line with one another, since they only have to pay for their IT tools later, once they are actually delivered.
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