Cisco, GreatAmerica Want to Finance Hardware Sales for MSPs — Necessary?
… after I take a look at the whole offer, said Richardson. “Now, if they’re making the agreement floatable between end users, helping Cisco simplify Meraki licensing transfer [and so on] – that is a big deal.”
“We have used GreatAmerica for a few finance deals and we have their service plugged into our QuoteWerks quoting tool,” said Rieger. “That being said, the majority of our clients are doing well right now and are paying cash for their hardware upgrade projects. We do a fairly good job of meeting quarterly so they can plan. Today in particular we had a meeting with a client that has to replace about half their network this year and they declined to even talk about financing. So this isn’t something that would have a lot of appeal for our particular situation.”
Rieger also says that [hardware-as-a-service]-oriented MSPs could end up having their valuations hurt because of this sort of play. “We tried HaaS many years ago and the clients didn’t like it and it was more of a pain for us.”
Interesting sides of the coin to consider here: Is the tool valuable from a financing solution standpoint, or is it fluff? As Ian Richardson puts it, MSPs will have to make that call when they examine the deal.
GreatAmerica is providing Life-Cycle Financing to eligible MSPs in the U.S. who are registered to sell Cisco products.