Cisco Systems Inc. said today it’s launching a new, $2.5 billion financial relief program for customers and partners that have been left in dire straits from to the coronavirus pandemic.

The new program is being offered through the company’s financing business Cisco Capital. It gifts customers a 90-day payment holiday, and allows them to defer 95% of the cost of new products and services from the company until 2021.

As for partners, the program enables them to offer their customers alternative payment plans in line with their cash flow. Cisco is also pushing its own pre-owned product program, called Cisco Refresh, as an alternative option for financially stricken customers.

Announcing the relief, Cisco Chief Executive Officer Chuck Robbins acknowledged that many of the firm’s customers and partners are under “enormous pressure” to keep their businesses up and running. “Whether it’s technology, financing or helping those most in need, Cisco is committed to working together to fight this pandemic on every front,” the CEO said.

The financial aid for customers follows a commitment by Cisco to donate $255 million in support of the local and global pandemic response. As part of that commitment, Cisco is providing free technology and financial support to non-profits, first responders and governments. It’s also providing free access to its Webex video chat and security services for now.

Constellation Research Inc. analyst Holger Mueller told SiliconANGLE the offer of financing should be especially welcome to enterprises in “nonessential industries” that have been hit hardest by the coronavirus. Many of these companies’ employees are now working from home, and it’s putting a big strain on their computer networks, he said. So companies need more capital to invest in them.

“With interest rates at a record low, it’s likely Cisco can provide better terms than regular banks, especially in regards of payment options,” Mueller said. “This helps both Cisco and its customers, allowing it to keep delivering gear and generating revenue.”

Cisco isn’t the first big tech firm to offer financial aid to customers. Last week, Hewlett Packard Enterprise Co. announced a similar program to lend up to $2 billion to customers for equipment purchases or to buy their IT assets at book value rates.

Photo: Cisco