Dell Technologies is doubling down on helping channel partners and customers combat cash-flow issues amid the coronavirus pandemic by extending payment deferrals through 2021 and offering new term options on laptops, desktops, storage and server products via a revamped Payment Flexibility Program.
Dell’s financial arm, Dell Financial Services, in April launched the Payment Flexibility Program and US$9 billion in financing to help fund customers’ capital technology needs during COVID-19. On Tuesday, Dell extended the program—which offers zero percent interest rates and six-month deferred payments—through 30 October, 2020, while also introducing new rates and options for PowerStore storage arrays, PowerEdge servers, and Dell laptops and desktops as part of its Technology Rotation offering.
“We’re giving customers flexibility to use the equipment for three years, extend into a fourth year with a predictable fourth-year payment or extend it into a fifth year. The pricing is extremely aggressive,” said Darren Fedorowicz, vice president of Dell Financial Services and Global Channel Sales, in an interview with CRN USA.
Under the new Technology Rotation offering, at the end of the contract term customers can extend payments on servers and storage using up to two fixed 12-month extensions to return or acquire the hardware. In addition, they have the option to return and upgrade their equipment with the latest technology to support remote workforce, hybrid cloud or on-premises initiatives.
“For example, a US$100,000 PowerEdge order over the three years: The customer is going to pay approximately US$93,000 and then they can return it, buy it or they can extend it on a month-to-month basis or by 12 months or 24 months,” said Fedorowicz. “If they extend it all the way to five years, they’re going to pay about US$104,000 over the five years. It’s a very aggressive offer that offers a high level of flexibility.”
The Payment Flexibility Program includes zero percent interest rates and deferred payments for up to six months, as well as short- term options for remote work and learning with six- to 12-month terms and refresh options for laptops and desktops.
The Payment Flexibility Program now includes PowerStore, Dell’s new midrange all-flash storage array. Customers can defer their first PowerStore payment until 2021 to help conserve cash, leverage zero percent financing for three years and then have the Technology Rotation options.
“PowerStore is such a significant opportunity for our customers to leverage. For customers, we’re saying, ‘Leverage the deferral payment. You can still get zero percent financing, but we want to enable you to have this technology refresh at even a greater cost saving,” said Fedorowicz. “PowerStore has both scale-up and scale-out technology. So if customers wants to scale out, they can add on to that technology, then we’ll do consolidated billing as they continue to order.”
On the channel front, partners leveraging the payment program alongside Dell’s Working Capital Solutions Program can extend payment terms up to 90 days.
A solution provider can offer a customer six months at no payment, followed by zero percent interest as well as the Technology Rotation offer. After the sale is complete, Dell Financial Services pays the partner up front for the full amount of the sale price within a few days.
“For example, the partner is getting a transfer price from Dell at US$80,000, but their sales price to the end user may be US$100,000—we’re going to fund that partner the full US$100,000 within a couple of days because the customer may not have to start paying us for six months,” Fedorowicz said. “So a partner doesn’t have to worry about collecting, cash flow, credit risk, etc.”
Fedorowicz said he’s seen channel partners leverage Dell’s financial offers for transactions ranging from US$10,000 to multimillion-dollar deals. “It’s driven a lot of cash-flow benefits for businesses. It really is a power tool,” he said. “For partners who leverage it correctly, it can help accelerate them versus them being cash-constrained.”
Bill Wavro, president of Dell Financial Services, said in a blog post that the program is the most comprehensive infrastructure financing program in the industry.
“To meet your organization’s core infrastructure and remote workforce technology needs, we’re offering the lowest rate and total cost of ownership (TCO) ever for PowerStore storage arrays, PowerEdge servers, and Dell laptops and desktops as part of the Technology Rotation payment solution,” said Wavro. “From payment deferrals to partner relief programs to low rate financing offers, we are here to help and best prepared to assist customers with flexible IT solutions.”