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Developping Vendor Financing Partnerships in IT. Eurolease forum. Richard Gendreau 16 th May, 2013. BNP Paribas Leasing Solutions Global overview. 2011 - Ranks 1st in Europe. BNP Paribas Leasing Solutions An organisation Specialised by Markets. 3 International Business Lines
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Developping Vendor Financing Partnerships in IT Eurolease forum Richard Gendreau 16th May, 2013
BNP Paribas Leasing Solutions Global overview 2011 - Ranks 1st in Europe
BNP Paribas Leasing Solutions An organisationSpecialised by Markets • 3 International Business Lines • to remain close to our client’s • and partner’s needs: • Technology Solutions • Specialised in technological assets: • Office Equipment • IT (hardware, software) • Telecom equipment • Medical • Equipment & Logistics Solutions • Specialised in professional rolling equipment: - Farming Machinery, Construction and Public Works equipment, Materials Handling equipment, Light Commercial and Commercial Vehicles. • Bank Leasing Services • Specialised in leasing solutions for Bank’s customers
Why ? • Why investigate the IT market for vendor financing ? • Widemarket • Attractive from a growth perspective • Tech refreshfitswithrenting … and thus to a vendorfinancing model
Findings • IT vendor financing - Findings • Information Technologyis not ONE market but SEVERAL marketS • Software # Hardware • Hardware relates to PCs, Servers, Storage, Printers… • Small ticket # Mid / Large ticket • Tier 1, tier 2 & tier 3 distribution models • Vendorfinancingpenetrationremainsweak • _aaStake up • PaaS, IaaS, SaaSmodels…
Roadmap • Roadmap will depend upon • Type of partner Manufacturer, Software Editor, Reseller, VAR, Distributor, VAD, Integrator… ? • End user typologyCorporateAccounts, Mid Caps, SMEs, Professionals • … Vertical Markets ? • Geography Mature country / Emergingmarket… or economicallydepressed? • The IT market represents an attractive opportunity for lessors investing in a vendor finance but it requires • The implementation of specific structure(s) • The design and roll out of the right products and services • A cultural fit
IT Retail : How Do We Make It Happen... • IT Retail: “Position Leasing as a Sales Aid and Not a Product to Sell” • Make It Easy • Training Programme – sales, ops • Helpdesk from Origination to Booking • Rate Calculators; Lease v Cash Tool • On line tool; from Quote to Contract • Increase Awareness • Product Promotions • Exhibition Support • Help Partners to Add Value to their Customers • Co Branding • Credit Checks • Joint Meetings with Key Customers • Internally Establish Cross Functional Teams • Sales, Marketing, Ops, Risk & IT
IT Wholesale : Global approach • IT Wholesale: “Provide a One Stop Shop” • Need for : • Geographical coverage • Top Down governance • Consistent approach and processes • Tailor made structures • Operational excellence • Points to note • Time to break even • “Imperfect” paper • Granularity of the portfolio • Operating risks
Software financing : Specific approach • Software financing: “Dispel the Myths that Software cannot be Financed” • Lessor cultural adjustment • Credit policies • Contractual package • Litigation & Recoveries processes • Vendor leasing to progress • Financing not in the vendors’ DNA • Strategic stance • Education & Engagement !
Momentum • But also because IT is a fast moving reality • Innovation is crucial need to anticipate: hosted, _aaS, • Service isgrowingFM, TCO • Adaptconstantlydifferenceisblurringbetweenassets • Act local stay close to reality • Think global & implement local !
Vendor financing • And of course, all that is relevant for traditional vendor programme is relevant in IT financing. • We need • Mutualunderstandingof the Potential Expectations & Benefits for Each Party • MidtermcommitmentBecauseitTakes Time ! • Engagement plan Sharedreponsabilities & Roles of the Parties ProperlyDefined • Value proposition Target ‘Sweet Spots’ & Match Ambition with Capability • Governance Steering Committees, Business Reviews...etc. • … in a word « customerintimacy »
BNP PARIBAS LEASING SOLUTIONS International Business Line Technology Solutions Richard GENDREAU Head of Partnerships +33 (0) 6 64 01 39 22 richard.gendreau@bnpparibas.com