May 15, 2006 Timothy Prickett Morgan
After mothballing its Low Rate Financing deal at the end of 2005, IBM brought it back to life in mid-January, offering customers with squeaky-clean credit very attractive 2.9 percent financing rates on its servers. This was considerably lower than the prevailing street prime interest rates, which were around 7.5 percent at the time. Last week, IBM jacked the rates up by 2 points.
Under the Low Rate Financing deal, which is offered by IBM’s Global Financing unit, customers can finance deals ranging in size from $1,000 to $1 million for System i5, System x, and System z servers as well