Technology
Written by Alma Anonas-Carpio / Correspondent
Tuesday, 16 June 2009 00:17

SMART initiatives to improve infrastructure and close the “mind gap” will get a boost as computer manufacturer IBM announced over the weekend that it is making up to $3 billion available to finance information-technology (IT) initiatives in key economic stimulus projects in Europe and the Asia-Pacific, including the Philippines, through IBM Global Financing, IBM’s lending and leasing business segment.

IBM said it will offer up to $2 billion in financing in Europe and has already made approximately $1 billion available in the Asia-Pacific region, and that IBM Global Financing will also extend its North American coverage to include financing for smart technology projects in Canada.

These funds are expected to help organizations move ahead with IT projects in 2009, while they await government funding. The financing assistance is earmarked for building the technological and environmental infrastructure of the 21st century in these areas.

“There is a great connectivity among nations,” IBM Philippines country general manager James Velasquez said. “While the various stimulus packages in different countries were designed to keep their own economies on track, it is as joined economies that we can rise from this global downturn together. In this context, IBM Global Financing is extending its stimulus financing program to the Philippines and various countries in Europe and Asia-Pacific to help global recovery.”

IBM has already been helping enterprises and local governments in these areas build their infrastructure to spur growth in key IT projects, such as the Smart Grid, Health Information Technology and Smart Transportation, which are all part of IBM’s corporate social responsibility initiative for a Smarter Planet. The financing targets companies and organizations in countries with government funding committed to helping create economic stimulus, new industries and enable infrastructure improvements.

The bulk of the $5 billion will be used for financing, where such services are available based on local financing practices, for smart technology projects for credit-qualified clients. The financing may come in the form of low rates and flexible financing options; deferred payment plans; enterprise financing facilities that offer structured lines of credit and; specialized project financing packages that allow clients to align payment streams to anticipated benefits throughout the project.

“The recession is going to drive many organizations, public and private, to make transformational changes in their IT environment. However, without access to the correct financing offerings, a significant set of opportunities will be lost and society-wide projects, like SmartGrid, will be substantially delayed.” United Kingdom-based IT research firm Ovum senior vice president David Mitchell said, “This is a bold move by IBM to help accelerate stimulus benefits into the current timeframe.”

IDC Australia program manager for IT spending Jean-Marc Annonier said “the launch of the IBM Global Financing stimulus program in Australia comes at the right time.” Annonier also noted, “while many businesses could potentially benefit from these new Federal Budget policy measures, some are still having difficulties obtaining financing in a tight credit market. IBM Global Financing’s stimulus financing offer will be certainly welcomed by organizations willing to modernize their IT infrastructure in order to prepare for the increased activity generated by heavy public investment programs.”

IBM Global Financing stimulus financing’s main targets include enterprises and municipalities that seek to implement technology projects that carry mainly IBM hardware, software and technology services components. Financing also can be applied to non-IBM technology as part of a larger IBM solution.

Governments around the world, from Australia to China to Germany, developed or are developing economic stabilization measures to spur employment opportunities and stimulate their economies. Many of these governments have developed programs to direct action toward “smart” investment to create jobs and to enable efficiency, sustainability and innovation.

In Europe and the Asia-Pacific region, IBM is actively involved in smart investment areas.

IBM is working with the French utility company EDF to see how utilities can use information from smart metering, as well as future sources of data, to automate the way utility grids, like electricity grids and water-supply networks, react in a crisis. Both companies will also work to find the best ways to integrate power generation from intermittent renewable-energy sources, like solar and wind energy, for use in electric vehicles and other new low-carbon technologies.

* Published in BusinessMirror