The IoT industry is blowing up in all directions and the growth potential is huge. In fact, depending on which analyst you ask, it might be damn near unlimited. Well, with all those devices, from the edge to the network, getting connected, pulling data and analyzing the living daylights out of it, the costs can grow almost as fast as the number of devices.
Since enterprises especially will be shelling out big bucks for new system installments, or massive retrofits, an enterprise-level solution is needed to finance that kind of capital expenditure.
Enter Cisco Capitol. Cisco’s financial arm operates as a financing house, funding purchases of Cisco technology solutions, providing credit lines to Cisco’s partners and offering refurbished products at discounted rates.
We spoke to Kristine Snow, President, Cisco Capitol, to find out how she works with Cisco’s clients and partners to ease the road toward IoT implementation.
IoT Evolution World: So why would a company finance a purchase with you, rather than use a traditional bank?
Kristine Snow: Because we’re a part of Cisco, we understand our customers’ needs and behaviors better than any outside financier or bank. We know the business models are changing and we are evolving our capabilities to meet those changes. As our customers are addressing the transition, we are ready.
IoTEW: What are some of the primary forces driving the growth of the IoT right now?
KS: We believe there are five main drivers that business leaders are addressing moving forward. The first is asset utilization and optimization, or how they can optimize the money they’re putting toward these devices. The second is productivity. Third is supply chain and logistics. Custom experiences are fourth and innovation is the last, which is how the companies are using the IoT to gain competitive advantage.
Image via Shutterstock IoTEW: What do you look at when evaluating the potential of a deal?
KS: At Cisco Capitol, we’re very focused on business outcomes and we look at the volume of data and connectivity. We believe the decision of how to acquire is as important as the decision to transition to Internet of Everything (IoE).
IoTEW: What is your main goal in financing these investments for your clients?
KS: We help customers to mitigate the cost of major investments in technology. A captive lender like us can bring a sense of being a trusted advisor to the deal and we can allow customers to preserve their operating capital for development and growth costs and align payment schedules to benchmarks tied to time or revenue. It’s a great way to accumulate ROI.
Editor’s note: A captive lender is a financial entity that exists within the company manufacturing the financed assets.
IoTEW: Is financing better than an outright purchase of equipment?
KS: Bringing financing into the ecosystem of the IoE is a real strategic advantage, with measurable ROI as a real benefit. It’s an opportunity for us to drive value to enable solutions in a compelling way.
I know we’re compelled to listen.
Edited by
Maurice Nagle
