HP Inc. announced it has expanded its financing and leasing options for channel partners and customers. Through an extended partnership agreement with HPE Financial Services (HPEFS) and a new strategic program with global finance company DLL Group (DLL), HP Integrated Financial Solutions will help accelerate and enhance the financing experience for customers and enable channel partners to grow their services-based businesses.
“As HP becomes more aggressive in its shift to a services-led model, financing is a capability we are prioritizing and integrating into more of our solutions,” said Deborah Baker, Head of Worldwide Leasing and Financing, HP Inc. “We strongly believe the more innovative our payment solutions are, the more likely we are to secure new business and maximize refresh opportunities.”
Leading the Shift to Services
As the industry increasingly moves to XaaS (Everything-as-a-Service) models, leasing and financing underpins HP’s approach to contractual selling — helping the company accelerate and augment services and solutions. By moving to a multi-vendor financing model with both HPEFS and DLL, HP Integrated Financial Solutions will help channel partners secure recurring revenue from their client base and offer more competitive payment options resulting in stronger customer engagement and the ability to bundle products and maximize opportunities.
“We are thrilled to collaborate with HP, and to help HP’s partners deliver compelling customer payment options,” said Rick Trobman, President of the Technology Solutions Global Business Unit at DLL. “HP´s strategy to evolve toward contractual service models fits perfectly with DLL’s life-cycle financing offers and our ability to help channel partners in bundling HP products and services into customer solutions. Customers now expect flexible options for how they leverage technology to collaborate and make agile business decisions.”
Since 2015, HPEFS has been a trusted HP financing partner, and will remain so supporting HP’s direct led sales with public, corporate and enterprise business customers, its Graphics and 3D businesses globally, and its indirect Managed Print Services (MPS) business in EMEA. HPEFS is also HP’s sole partner for North American and Latin American markets. The three-year extension to the partnership agreement reinforces the commitment and value the two companies can provide to HP’s customers and partners.
“Big or small, customers today want options for workplace tech: they want to be able to use vs. own, and consume as a service” said Paul Sheeran, Vice President and Managing Director EMEA, Worldwide Channel Leader, HPE Financial Services. “They also want a more sustainable approach to IT. HP is clearly leading the way in that space, and HPEFS financing and circular economy solutions are completely aligned to this ambition. With the extension of our partnership agreement with HP through 2024, we look forward to continuing to bring value to partners and customers, so they can achieve their goals — business and sustainability.”
HP plans to extend the multi-vendor model in 2020 with the addition of new local and regional finance partners to ensure country coverage across emerging markets.
Baker, in a press briefing this week, called the move the "next step" as HP proceeds with its strategy toward a multi-vendor financing model for the market.
"Everything we do when it comes to a payment solution, or leasing and financing, really supports the transition from transactional to contractual for HP and for our channel partners as well," she said. "It creates 'stickiness' for that end-user customer with the channel."
The contractual offering is expected to drive increased revenues, lower discount rates, greater margin and increased transaction size. It also strengthens repeat business and is expected to boost digital capabilities, HP said.