• Why we should move to OPEX? What is OPEX and CAPEX?

These questions are answered and explained in this article

CAPEX

CAPEX (Capital Expenditure) it means spending money upfront on Physical Infrastructure deducting that expenses from your tax bill all over the time.

For example:

1. Server costs
2. Storage costs
3. Network costs (Routers, Cables, Switches)
4. back-up and archive cost
5. Disaster recovery cost
6. Datacenter cost (Rent, Cooling, Physical security)
7. Technical Support

With Capital expense you have to guess upfront what plan to spend

OPEX

OPEX (Operational Expenditure) The costs associated with on-premise datacenters, That has shifted the cost to the service provider.
The customer has to be concerned with non-physical costs.

1. Leasing software and customizing features
2. Training employees in cloud services
3. Paying for cloud Support
4. Billing based on cloud metric => -> Compute Usage -> Storage usage

With Operational Expenses you can try product or service without investing in equipments.

Conclusion : So we talked clearly about the difference, OPEX is way more Cost-Effective. in the other hand CAPEX or On-premise is way more expensive, but you can get the Security Requirements tho.

See you in the next article.