IBM Offers Zero Percent Financing on xSeries Servers

IBM today announced zero percent financing options for all of its Intel-based servers, a limited-time offer that runs through Dec. 31.

IBM today announced zero percent financing options for all of its Intel-based servers. The limited-time offer runs through Dec. 31.

In addition, customers taking advantage of the special financing on IBMs eServer xSeries can also purchase additional IBM storage and PC products and have them included in the zero percent finance package.

In recent weeks, several U.S. computer makers seeking to spur sales of enterprise systems have begun offering special financing deals featuring either low interest or no payments for several months. Compaq Computer Corp., Dell Computer Corp., Hewlett-Packard Co. and Sun Microsystems Inc. are among the industry leaders offering such incentives.

All major computer makers have seen earnings plummet due to an industrywide drop in hardware sales and a continuing price war; however, IBMs earnings have fared better than most due in part to the companys sizable services business.

Earlier this week, Sam Palmisano, IBMs chief operating officer, told Wall Street analysts that the company has seen its services business pick up in recent weeks.

During its semiannual meeting with analysts in New York on Wednesday, Palmisano noted that 60 percent of revenues and 75 percent of IBMs profits come from the companys software and services division. Services are also seen as key in driving sales of IBMs hardware products.

IBMs zero percent financing applies to 24-month contracts involving purchases between $5,000 and $500,000.

"Through the use of this and other financing offerings, IBM is helping customers quickly acquire the technology they need to run their business while lowering the ongoing costs of using and deploying that technology," said Bill Doscas, vice president of sales and marketing for IBM Global Financing, in the statement announcing the limited-time offer.