Extreme Networks today introduced Extreme Capital Solutions to provide in-house financing for customers. Extreme Capital Solutions derives from the company’s acquisition of the capital solutions team that was formerly with Brocade.
Extreme acquired Brocade’s data center switching, routing, and analytics assets for $55 million in October 2017. After Broadcom completed its acquisition of Brocade in December 2017, Broadcom then allowed Extreme to also acquire the capital solutions team. There are about a dozen people in the group.
Lisa Paquette-Nelson, senior director of Extreme Capital Solutions, said the group will cover not only the data center networking assets that came from Brocade, but all of Extreme’s products and services. “Extreme offers an entire suite of products for networking from access points all the way into the core of the data center,” Paquette-Nelson said.
The in-house financing will also cover the Avaya networking assets, which Extreme acquired last year. Paquette-Nelson said those assets are still being integrated, and the integration is expected to be complete this quarter.
The capital solutions team existed at Brocade for many years. But Paquette-Nelson said the group has been working since December to bring captive in-house financing to all the other products within Extreme. “We’ve been working to get everything migrated from fulfillment, to legal, to contracts,” she said. “We’re able to accept new orders. This is very new for Extreme. Prior to us, there was no cohesive overarching Extreme strategy about innovative and attractive financial models.”
The capital solutions team offers subscription, capital leasing, and usage-based business models.
Paquette-Nelson said one thing is very unique to Extreme: a 60-day rolling subscription for hardware and software. There is no term commitment other than the 60 days. “This has been available for software for a long time, but with software it’s easy,” she said. “But when you have hard assets on site, and you’re only committed for 60 days, it’s an opex based-model for customers. It gives the ability to refresh that technology based on the needs of the networking infrastructure. It is not something our competitors currently offer.”