HP and Westcoast entice SMBs with subscription model

New scheme aimed at making HP products more affordable by removing upfront costs

HP and Westcoast have launched a new subscription-based model aimed at helping SMBs buy HP kit without the upfront costs.

The pilot scheme, HP Subscription, is now available to customers in the UK and allows users to buy HP products via monthly subscriptions.

Westcoast claims the model will give resellers more opportunities, easier sales and less risk. Under the terms of the scheme, HP Financial Services (HPFS) pays the reseller the invoice value upfront, and then takes from the customer a monthly instalment.

Paul Hamilton, Westcoast's client director, said: "We see this as a really strong play and one that will be embraced by the channel because it's precisely what small and medium-sized business end-customers have been looking for.

"We also think public sector organisations, including those in education, will see the attraction of buying IT in this way. HP Subscription is a market-shaping move that opens up a whole new world of HP kit and bundles that were previously well out of financial reach," he said.

Peter Howell, partner development manager at HP Financial Services, said: "Through HP Subscription, HP and its partner Westcoast are bringing a new style of IT to the industry. It's a groundbreaking model that enables the end user to buy what they need as opposed to what they can afford. It also allows resellers to accelerate their revenues by creating new and affordable tailored bundles.

"Plus, the fact that resellers get paid the full contractual fee at the start means they benefit from a terrific cash-flow position along with their customer spreading the cost over the useful lifecycle of the assets," he said.

News of the new offering comes after Westcoast joined Microsoft on its Coud Solution Provider (CSP) programme.