Industry: Information Technology Services
Services Provided: Purchase Leaseback
Date: January 2020
About The Company:
This company is an IT solutions and managed services provider located in Atlanta, GA.
Top Values Provided:
- Purchase Leaseback
- Discovering Asset Values
- Significant Cost Savings
This customer desperately needed to add storage to their mainframe environment, but they did not have the budget for the project and their next cycle did not begin until the following year. The z-series machine was locked at the current OS level, due to a custom application and an annual maintenance renewal that was almost due.
ReluTech executed a Purchase Leaseback (PLB) for the customer’s mainframe that supplied the capital needed to purchase the unbudgeted storage solution.
Although the rental payments from the PLB, that included ReluTech support, were practically the same as the cost of the OEM support alone, the cost savings in utilizing ReluTech maintenance in place of the OEM support made room in their budget. Ultimately, the customer got the storage solution they needed with no impact to their budget and ReluTech’s client looked like a hero.
“When my customer called me and said they needed a large storage solution, but they had no budget, I was unsure how I, or anyone for that matter, could help them. When I need a creative solution, my first call is always to ReluTech. In talking through the issue, they uncovered the fit for Third-Party Maintenance on the z-series and the FMV (Fair Market Value) analysis they did, created the capital that was needed to fund the storage solution. I presented a Purchase Leaseback (PLB) solution to the customer where ReluTech cut them a check for the z-series that covered the cost of new storage solution I provided, and then they rented it back to the customer. The rental cost included ReluTech maintenance support, at a significantly lower cost than the OEM. When the customer compared the rental cost to the OEM support that was already in the budget, it was pretty much a wash. We effectively solved their storage problem without impacting the budget, seemingly out of thin air. The customer was stunned, and I have been their first call for everything IT ever since. The call I made to ReluTech, when the customer first reached out, was the best call I made all year.”