Asset Purchase Leaseback Solution
Date: December 2023
About The Company:
This FinTech is a leading global financial services provider, offering a wide range of investment management, research, trading, and financial data analytics services to institutional investors.
Top Values Provided:
- Transparent lease pricing and timeline (no penalties for early termination)
- Significant cost-savings to be reallocated to cloud migration project
Businesses often face challenges aligning their existing IT infrastructure costs with their future cloud costs. This case study explores a unique approach taken by a prominent financial institution (the bank), where a strategic partnership with ReluTech led to the successful cloudification of their environment through innovative IT asset financing.
Recognizing the need to modernize its IT infrastructure without the constraints of traditional fixed-term leases, the bank sought a solution that would allow for flexibility in migration timelines and provide the necessary cash infusion upfront to help pay for their transformation journey. With a diverse array of hardware assets from over 50 OEMs spread across multiple locations globally, the bank faced a complex challenge that required a tailored approach.
- Over $60 Million of IT assets requiring transformation to the cloud.
- Hardware assets from over 50 OEMs in multiple locations.
- Need for a flexible payment structure aligned with the migration timeline.
- Lack of affordable options in the market for financing existing equipment.
ReluTech emerged as the sole provider capable of delivering a comprehensive solution. Unlike typical fixed-term leases geared towards equipment refresh cycles, ReluTech’s approach allowed the bank to finance their future cloud transformation plans leveraging their existing assets. This
approach not only provided the necessary cash for their transformation but also ensured a predictable and flexible payment schedule over the course of the migration.
Key Features of the ReluTech Financing Solution
1. Flexible Payments and Incentives
- Tailored payments aligned with the migration timeline.
- Incentives provided for accelerated
transformation with cash rebates.
- No prohibitive penalties for early termination.
2. Granular Pricing
- Monthly payments based on the serial
number of each asset.
- Flexibility for early terminations or lease extensions for specific assets.
- Substantial discounts for assets retained at the end of the term.
3. R2 Certification
- Full control over the outcome as an
R2-certified leasing company.
- Distinct advantage over competitors in managing off-lease products.
4. Transparent Pricing and Tracking
- Proprietary RAMP portal for real-time tracking of assets and progress.
- Immediate pre-negotiated credits for assets being installed.
- Complete transparency in pricing structure.
The engagement not only provided the bank with the financial resources needed for their transformation but also established a clear timeline for the process. The flexibility, incentives, and transparency offered by ReluTech’s solution enabled the bank to navigate the cloudification journey with confidence and efficiency.
This case study showcases how a strategic partnership with ReluTech empowered a financial institution to overcome the challenges of IT transformation through innovative and flexible asset financing. The success of this initiative serves as a testament to the importance of tailored financial IT solutions in driving digital transformation within the constraints of existing data center infrastructure.