Cisco is one of the major stake holders in the computer network industry & perhaps it will be tough to find a person in IT Industry who doesn’t know about Cisco.
Cisco has recently announced a new finance program called the Cisco Capital Business Acceleration Program, aimed at encouraging customers to purchase its products and services now without having to start paying for them until 2024.
This program will enable customers to defer payments until 2024 based on the total amount financed and contract terms. The entirety of Cisco’s portfolio, including hardware (router, switches, firewall, etc.) software, and services, is eligible for the program, as well as select partner services and third-party hardware.
According to Kristine A. Snow, SVP and President, Cisco Capital, “Our goal is to provide payment options that allow continuous technology investment to maintain productivity and business continuity while minimizing cash outlays. Customer success is our priority. The new program is designed with this in mind and will help address some of our customers’ most pressing concerns.”
Cisco’s move is partly in response to keep its own sales pump primed amid industry reports that some organizations, particularly large cloud providers, are not buying as many services and systems in anticipation of potential economic headwinds later this year. However, despite global economic turbulence, all regions worldwide are projected to have positive IT spending growth in 2023, according to Gartner. Worldwide IT spending is projected to total $4.6 trillion in 2023, an increase of 5.5% from 2022.
Other networking vendors are also dealing with tough market conditions. Juniper Networks CFO Ken Miller said, “As supply improves, we’re seeing more customers rescheduled delivery dates to better match current project timelines. This is proving to be particularly true in the cloud vertical where certain customers are digesting prior purchases, and we saw a series of projects pushed to future periods during the March quarter.”
Similarly, Arista CFO Ita Brennan signaled a potential blip in some sales, saying, “We expect some moderation in customer spending, especially with our cloud titan customers following a year of accelerated demand in 2022.”
Cisco’s finance program aims to provide payment options that allow for continuous technology investment and maintain productivity and business continuity while minimizing cash outlays. It is an excellent opportunity for customers to upgrade there networking infrastructure and invest in Cisco products and services now and defer payments until 2024.
Cisco hopes that the new program will help address some of its customers’ most pressing concerns and maintain its own sales pump primed amid tough market conditions. Let’s see in future how this shapes up.