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Desktops

IBM lowers financing terms

IBM has unfurled a new financing plan, called The Power of Zero Plus, that will let customers defer payments for 90 days without charge and obtain financing at 3.75 percent or higher on purchases of servers and other products. In addition, IBM is offering rebates and discounts of up to $40,000 through the "Green Streak II" promotions designed to promote iSeries servers.

Although IBM is primarily known as a technology company, its in-house financing unit is one of its most profitable divisions. In the third quarter, IBM Global Financing reported a revenue of $715 million and a gross margin--a measure of money left over after expenses--of 57.7 percent. Rival Hewlett-Packard has a similar financing arm.