Changing the paradigm of technology financing

One, a fluctuating economic uncertainty that appears here to stay, and the other, a proliferation of new technology devices and solutions, from mobility to video, cloud computing and analytics. 

Whether it is service providers or enterprises, the resultant theme from these trends is the need to become more efficient and effective in allocating capital and investing in new technology.

 

Today, the rationale behind buying outright is being challenged as customers move to models that match cashflow to the delivered benefits. 

 

New models include simple lease solutions as well as other financial and operating arrangements such as “on demand” consumption or “pay as you grow” models that typically incorporate the added benefit of balance sheet management and even shared risk with the vendor.

 

Vendor financing will be a significant growth driver across Asia. A lot of telecom operators are using vendor-supported financing, rather than going to the long-term bank financing market – and this trend is likely to increase across Asia. Reasonably priced three- to five-year vendor financing options are available to help support operators with the purchase of equipment and infrastructure.

Financing can help organisations deploy a complete and integrated ICT platform today without being limited by an annual capex budget. 

 

Leasing can further enhance purchasing power and enable businesses to manage their cashflow effectively and rapidly adapt to changing economic conditions.

 

With budgets increasingly restricted, financing is the ideal way for businesses to acquire the technology they need to achieve their goals and growth targets. 

 

For most enterprises, financing is not just an alternative method of funding the acquisition of technology, but an approach to business that offers important technical, cost and operating advantages.

 

In markets like Thailand’s, interest rates sit well below the typical return on capital expected of today’s enterprises, so forward-thinking companies are wisely reinvesting their cash to focus on core activities and making use of vendor financing to facilitate IT acquisitions.

 

Cisco provides competitive and flexible financing through Cisco Capital, which has been operating in Thailand since 2005.

 

As part of Cisco’s total solutions, Cisco Capital also helps channel partners to manage cashflow, grow sales and increase profitability, while offering flexible and short-term financing packages that make customers obtain higher credit lines and help them build healthier businesses.

 

To help support the government’s “Digital Economy” scheme, Cisco aims to contribute know-how, products and services as well as financing solutions to drive the economy, create jobs and transform Thailand.

 

Vatsun Thirapatarapong is the managing director for Cisco in Thailand and Indochina.