Expenditure
CapEX
Capital Expenditure (CAPEX)
Spending money upfront on physical infrastructure. Deducting that expense from your tax bill over time.
- Server Costs (computers)
- Storage Costs (hard drives)
- Network Costs (Routers, Cables, Switches)
- Backup and Archive Costs
- Disaster Recovery Costs
- Datacenter Costs (Rent, Cooling, Physical Security)
- Technical Personal
With Capital Expenses you have to guess upfront what you plan to spend
OpEX
Operational Expenditure (OPEX)
The costs associated with an on-premises datacenter that has shifted the cost to the service provider. The customer only has to be concerned with non-physical costs.
- Leasing Software and Customizing features
- Training Employees in Cloud Services
- Paying for Cloud Support
- Billing based on cloud metrics eg.
- compute usage
- storage usage
With Operation Expenses you can try a product or service without investing in equipment
Total Cost of Ownership (TCO)
Capital vs Operational Expenditure
CapEX
Capital Expenditure (CAPEX)
- Spending money upfront on physical infrastructure
- Deducting that expense from your tax bill over time.
- Server Costs (computers)
- Storage Costs (hard drives) Network Costs (Routers, Cables, Switches)
- Backup and Archive Costs
- Disaster Recovery Costs
OpEX
Operational Expenditure (OPEX)
The costs associated with an on-premises datacenter that has shifted the cost to the service provider. The customer only has to be concerned with non-physical costs.
- Leasing Software and Customizing features
- Training Employees in Cloud Services
- Paying for Cloud Support
- Billing based on cloud metrics eg. compute usage
- Datacenter Costs (Rent, Cooling, Physical Security)
- storage usage
- Technical Personal With Capital Expenses you have to guess upfront what you plan to spend With Operation Expenses you can try a product or without investing in equipment