cloud: CapEx vs. OpEx

Cloud Economics - Are You Getting the Bigger Picture? - CTP

"Every company has its own ideas on how best to determine cloud ROI. For many, it’s capital expenses (CapEx) versus operational expenses (OpEx). Cloud computing shifts IT spending to a pay-as-you-go model, like utility billing; you only pay for what you use, when you use it. For startups or new applications, this well-established argument is sound. Why purchase hardware, data center space, power and supporting software when they can be rented by the hour at a higher utilization rate? For enterprises, however, the decision is not so simple."