TotalCIO

Dec 9 2008   4:51PM GMT

Sign of the times: Hewlett-Packard software comes with 0% financing offer

Linda Tucci Linda Tucci Profile: Linda Tucci

There’s nothing like a Hewlett-Packard software news announcement to get me a’wondering.

The typical missive usually begins with some global statement about HP helping IT deliver better business outcomes. Then rapidly devolves into a dizzying catalog of product enhancements and new integrations and, of course, the array of HP services for those IT departments that can’t figure out the new integrations and enhancements on their own. The HP point person cheerfully gets on the phone to sort it all out, but in the end, I realize I’d have to be on much closer speaking terms with the world’s largest technology company to understand what was new, newish or just another name for something HP announced seven months ago…

But today’s HP news (enhancements to its business technology optimization, aka BTO, software) came with a little jolt — namely that there is no more business as usual, even in HP press releases. Right there in the headline was a pitch worthy of a car company: “New HP Software and Zero Percent Lease Financing Helps CIOs Respond to Tough Economy.” 

It occurred to me that this must be very expensive software to warrant 0% financing. Unfortunately, HP doesn’t get into how much it costs with the press. I did find out the offer ends Jan. 31.

The software, from what I can glean, sure sounds nifty — a big brain to keep track of all your IT parts and help you figure out how best to use them. (According to the release, it saved “a leading health care provider” $30 million. Who knows what it could do for you?)

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  • Linda Tucci
    Linda, If you read farther down in the release, the 0% lease financing is good for deals meeting a minimum $100,000. This is not a standard priced, off-the-shelf software. Zero percent financing give substantial cost savings over 3-5 years. If you were to take that same savings and lop it off the "price" of the contract, the sales reps and their managers would have coronaries. Cheap financing is way to get the sale without lowering the sales revenue figure or commission structure.
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