As the world’s largest captive information technology (IT) financier, IBM Global Financing provides a simple single financing solution with necessary funding approved upfront for IBM and appropriate non-IBM components. Cash outlays can be matched to benefits and specific milestones with attractive interest-rate protection. IBM Global Financing also provides asset disposition solutions and refurbished equipment to help clients with environmental and other corporate responsibilities. IBM Global Financing is an excellent choice for financing Analytics initiatives.
The three year business case analysis presented in this paper compares typical IBM Global Financing with the alternative of paying upfront for three Analytics solution sizes and investments – small, medium and large. The quantitative model incorporates scaling factors for lower failure risks and greater rewards in later years as the solution succeeds and matures. Unsuccessful projects contribute to sunk costs which are smaller with Financing even when early termination costs are taken into account.
These reduced sunk costs along with other attractive benefits of IBM Global Financing over Upfront Payments contribute to IBM Global Financing’s much higher (2-3 times) Internal Rate of Return (IRR) and lower (by 5-20 percent) Payback Period reported in this paper. Consequently, with IBM Global Financing clients can build a more compelling financial business case for their investment and improve their risk-reward profiles as they progress on their Analytics journey. IBM Global Financing is a very effective way to close a business case for investing in Analytics.
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