Cisco is launching a 2.5 billion dollar (2.3 billion euros) financing program that lets customers delay 95 percent of payments until 2021. The measures give companies some necessary breathing space when they are short of money, but need more resources to be able to work from home.
If the financing offer is used, customers do not have to pay anything for the first three months. In the last five months of the year, they have to pay 1 percent of the monthly amount due. Due to the ongoing measures to combat the spread of the corona virus, the use of video calls and software for virtual private networks has increased extraordinarily. This is also the case for Cisco‘s Webex and AnyConnect. Sales of network equipment have also increased as Internet activity has increased.
The offering could help Cisco to differentiate itself from competitors, while generating more revenue in uncertain economic times. Hardware, software and services are all covered within the program, as well as fees from Cisco’s sales and installation partners.
“Cisco’s customers and partners are under tremendous pressure to keep their businesses connected while being productive and secure,” said Cisco CEO Chuck Robbins. “Whether it’s technology, financing or helping those in need, Cisco is committed to working together to fight this pandemic on all fronts.”
The new programme will initially be available in 19 countries, including the United States, China & Taiwan, India and Germany.
Cisco recently pledged 225 million dollars to support global and local corona assistance. This includes providing technology and financial support to nonprofit organizations, first responders and governments. Cisco also offers free Webex and security services during the corona crisis.
The company has been providing various forms of financing for twenty years and had $9.6 billion in loans and other financial instruments (such as marketable shares) in its portfolio as at 25 January. At that time, Cisco held approximately 8.5 billion in cash.