Cisco Systems has launched a $2.5 billion business resiliency program designed to allow its customers to defer 95% of payments until 2021.
Companies battling with financial pressures during the coronavirus pandemic are also facing challenges to adapt their business model to accommodate more remote-working tools. Cisco has seen a surge in demand for its video conferencing and virtual private network software, which includes its Webex and AnyConnect tech. Increased use of networking hardware also produced by Cisco is in similar demand.
The offer will allow businesses to enjoy a three month grace period without paying anything, followed by 1% of any money owed in each of the last five months of 2020. Offered through Cisco Capital, the vendor financing business within Cisco, and designed to help mitigate financial challenges resulting from the Covid-19 pandemic, the program aims to provide organizations with access to the solutions they need to keep their businesses running and productive.
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Productive and secure
"Cisco's customers and partners are under enormous pressure to keep their businesses connected while remaining productive and secure," said Chuck Robbins, Chairman and CEO of Cisco. "Whether it's technology, financing or helping those most in need, Cisco is committed to working together to fight this pandemic on every front."
The program includes an up-front 90-day payment holiday and allows a customer to defer 95 percent of the cost of a new product or solution until next year, which in turn protects their business and increases their existing cash flow. Starting in January 2021, customers would then make a monthly payment based on the total financed amount and the remaining term of the financing.
All Cisco solutions are eligible for this program, including hardware, software and services as well as up to five percent of partner provided services, such as installation.
The program also offers support to Cisco’s 60,000 partner ecosystem. The Business Resiliency Program will help partners provide an additional solution to better serve customers, without any change to their own financial situation.
"Cisco Capital's goal is to make it easier for customers and partners to acquire the technology they need to keep their businesses running and productive. Their success is our priority," said Kristine A. Snow, SVP and President, Cisco Capital. "The new Business Resiliency Program is designed with this in mind and will help address some of our customer's most pressing concerns."
In addition, Cisco Capital is supporting customers and partners through Cisco Refresh to help with budget constraints. Cisco Refresh offers a wider range of products and further discounts and promotions to help customers and partners receive competitively priced, pre-owned products quickly and easily. Cisco Refresh solutions are also eligible for the Business Resiliency Program where 95 percent of the cost can be deferred until 2021.
“This is a valuable offering by Cisco” said Will Townsend, Senior Analyst, Networking Infrastructure, Moor Insights and Strategy. "Through my countless discussions with organizations, balancing cash flow while maintaining robust network operations is critical given the impact of COVID-19. I continue to be impressed with Cisco’s proactive strategy to enable its customers, partners, employees and the community overall to maintain productivity in these trying times. The Business Resiliency Program is another example of the company’s overall effort."
The Business Resiliency Program from Cisco Capital is part of Cisco’s overall commitment to supporting customers, partners and communities through the Covid-19 pandemic. Cisco recently committed $225 million in cash, in-kind, and planned-giving to support both the global and local response. This includes technology and financial support for non-profits, first responders and governments.
Cisco is also empowering customers and partners with its free Webex and Security offers enabling them to stay securely connected and productive during this time
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