NewsUC&C17 Apr 2020 · 3 min read

Cisco Extends $2.5 Billion Credit to Keep Companies Afloat

Cisco extends $2.5bn credit, letting businesses defer Webex, hardware and services costs to keep customers and partners connected. Published on UC Today.

Ian Taylor

The new payment arrangement will let customers and partners access technology to support continuity, according to a recent blog post by the collaboration giant Cisco Systems. During these uncertain times, Cisco said it wants to invest in the longevity of its customers and partners, and now allows them to defer up to 95 percent of the cost of using its systems until January 2021.

The hope is that businesses can maintain 'business as usual,' given the circumstances, by paying little-to-nothing for the popular collaboration tools it develops. Available via Cisco Capital, the vendor financing operation that resides under Cisco's umbrella, the financing is in place to help companies mitigate financial difficulties resulting from the COVID-19 pandemic," according to the company. Commenting on the announcement, Cisco CEO, Chuck Robbins, said in a statement: "Cisco's customers and partners are under enormous pressure to keep their businesses connected while remaining productive and secure."

"Whether it's technology, financing, or helping those most in need, Cisco's committed to working together to fight this pandemic on every front"

According to the collaboration leader, its new business resiliency program has an 'up-front 90-day payment holiday.' After this period, customers will make monthly payments based on the total financed amount and the remaining term of the financing. Cisco said all its solutions are eligible for the program.

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Cisco said this includes hardware, software, services, as well as up to five percent of partner provided services, such as installation. This is great news for Cisco's 60,000 strong partner ecosystem, which will enable them to maintain a sense of financial stability during the COVID-19 period.

Cisco's new business resiliency program is a part of the company's commitment to supporting customers, partners, and communities through the COVID-19 pandemic, it said in a statement. UC Today recently published an article on all the responsible acts unified communications and collaboration companies have committed as a result of the COVID-19 pandemic.

The networking company was featured in that piece for pledging $225 million in cash for in-kind, along with planned-giving to support both global and local response efforts for technology, financial support for non-profits, first responders, and governments.

Cisco has also said it would offer up its popular Webex video conferencing and security platforms for free so customers, as well as partners, could maintain secure connections and productive work environments as millions of employees head home to work. Cisco's Jeff Campbell, said supporting governments and communities as they navigate a new reality is paramount if we want them to continue to thrive. He recognized, it is also key if we want to ensure the unemployment crisis does not worsen, adding:

"Across the Americas and our company, Cisco believes in using our technology to help others, which is why we've pledged to continue helping those in government lead citizens through this unprecedented time." Enderle Group Principal Analyst, Rob Enderle, told Market Watch, he thinks 'Everyone might take advantage of Cisco's line of credit,' adding,

"I expect everyone is going to do this, otherwise everything will shut down. People still need technology, and companies are being very conservative with cash”

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