The COVID-19 pandemic has made digital transformation essential for businesses and, at the same time, elevated finance to one of the top concerns of business leaders.
IBM Global Financing has gained momentum in this scenario, assisting businesses that want to invest in their hybrid cloud and artificial intelligence journey.
“In the past, we might have been a little more out there with our own banner, etc.,” said Brian Hoffmann (pictured), chief operating officer of IBM Global Financing. “In the future, I think that you should expect to see us very well integrated into anything you are doing. I think our value prop is clear and compelling and will be included in these hybrid cloud transformations to the benefit of our clients.”
Hoffmann spoke with Dave Vellante, host of theCUBE, SiliconANGLE Media’s livestreaming studio, during IBM Think. They discussed how IBM Global Financing is playing a key role in helping transform business IT, the challenges brought by the pandemic, and the benefits of IBM’s own hybrid cloud journey. (* Disclosure below.)
Aligning the flow of payments to the benefits realized
IBM Global Financing’s advice on the best financial strategy for business on the hybrid cloud journey depends on company type. For large clients, financing helps to improve the return on investment, aligning the flow of payments to the moment when the benefits are realized, according to Hoffmann.
Smaller customers and industries with more cash constraints seek immediate cash-flow benefits. They want to move forward as quickly as possible in their digital transformation without blowing the budget or taking too many risks in times of uncertainty.
“That’s where financing really comes in as well,” Hoffmann stated. “We’re kind of talking much more about that value proposition than just the improved ROI proposition that we’ve had all along.”
In addition to assisting customers, IBM Global Financing provides financing for IBM’s channels, such as distributors and resellers, and is now also focusing on asset recovering. “It’s a pretty small business, springing back equipment that comes off lease or that is used by IBM internally,” he said. “I’m pretty proud of it because it really does help with the focus that the world, that IBM has on sustainability and reuse.”
The hybrid cloud path can benefit businesses in three main ways, according to Hoffmann: as an immediate, short-term payback; in the long run by improving efficiency, reducing costs or making the client experience better; and from a strategic point of view, by increasing revenue, getting to new clients or improving margins.
“We were working on our [own] digital transformation a little bit before the pandemic, and it kind of followed those three items,” Hoffmann concluded.
Watch the complete video interview below, and be sure to check out more of SiliconANGLE’s and theCUBE’s coverage of IBM Think. (* Disclosure: TheCUBE is a paid media partner for IBM Think. Neither IBM, the sponsor for theCUBE’s event coverage, nor other sponsors have editorial control over content on theCUBE or SiliconANGLE.)
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