Financial issues and imperatives are often influential when organizations are we

Question

Financial issues and imperatives are often influential when organizations are weighing up different cloud solutions options. Most seek changes that significantly reduce their capital expenditure (capex), and are quite happy to tolerate modest increases in their operating expenditure (opex),

do you have suggestions for which financial factors would typically be given prime consideration when sizing up different cloud solutions. Also, do you have any relevant use-cases or examples for where an organization migrating its services to the cloud has made very sizeable capex and/or opex reductions?

Explanation / Answer

soution:-

Traditionally, most of the IT expenses come under the shadow of capital expense and it is well known as CalEx expenses in finance and accounting industries. When it comes to cloud computing, the Service model of using software, cloud storage, most of the IT firms are gradually shifting most of their IT expenses to the Operational expense which is abbreviated as OpEx. But it is difficult to tell which company will choose CapEx or OpEx for their organization. Here are few comparison between Capex and Opex:

So, based on all the expenditures and advantages, Opex will the appropriate model which an IT company must choose while they are migrating everything to cloud. Based on cost and services, Opex has an upper hand over Capex.

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