Skip to main content
Arrow Electronics, Inc.
Full frame shot of metallic structure
Success Story

A state run healthcare organization secures $2M virtualization subscription without straining budget

Flexible financing that makes long-term virtualization easier

Young Man Reading Newspaper In Front Of Capitol

Balancing budget limitations for end-user customers with the revenue needs of IT vendors can be tricky, especially in the public sector. Arrow Capital Solutions helps make it easier by offering flexible financing options that work for everyone involved.

Learn how a state run healthcare organization worked with Arrow Capital Solutions to secure a $2M virtualization subscription, while aligning payment needs across all stakeholders.

Modern Glass Architecture Of Berlin

The Challenge

A state run healthcare organization required predictable, annualized payments to align with budgetary planning and appropriations. However, the IT vendor who secured the contract sought to move beyond a traditional one-year agreement and receive advance full payment for a five-year solution.

 

Without a flexible financing option in place, the deal would have remained limited to annual billing, thereby restricting contract length and long-term value for both the channel partner and IT vendor.

Happy business partners walking through office

The Solution

Arrow Capital Solutions designed a prepaid five-year financing structure billed annually to the end customer. This approach delivered the predictability and affordability the healthcare system needed, while ensuring the channel partner and IT vendor received 100% upfront payment for the full solution.

 

Arrow Capital Solutions assumed the multi-year financial risk, enabling the IT vendor to confidently support a longer-term agreement. To further strengthen the transaction, the IT vendor subsidized the deal — maintaining pricing control while maximizing overall profitability.

High Angle View Of Business Meeting

The Result

This tailored financing approach delivered value across the ecosystem:

  • A multi-year contract secured with non-appropriation language to support the SLED customer
  • Predictable annual payments for the end-user customer, along with cost savings tied to long-term commitment
  • Immediate upfront payment for the channel partner and IT vendor
  • Increased deal size and improved long-term customer retention
  • Greater pricing and subsidy control for the IT vendor

By aligning financial flexibility with strategic objectives, Arrow Capital Solutions helped transform a complex deal into a long-term success.

Learn how Arrow Capital Solutions can help structure financing that works for your customers. Reach out to your Arrow representative to learn more.