Azure CapEx v/s Opex

Question 1

Capital Expenditure [CAPEX]

Answer 1

refers to buying your own infrastruture such as servers for your premises environment.

Question 2

CAPEX Characteristics

Answer 2

1. Significant Upcost on physical infrastructure.
2. Value of servers purchased decreases overtime.
3. Capaicty of servers may not be fully utilized.
4. Maintenance, Storage & Network costs.
5. Technical Personals need to be hired and managed.

Question 3

Operation Expenditure [Opex]

Answer 3

refers to renting of infrastructure or buying services from cloud provideres like Azure.

Question 4

OPEX Characteristics

Answer 4

1. No upfront costs as costs are based on usage.
2. Ongoing cost are variable based on actual usage.
3. No wastage of resources.
4. Maintenance and management of infrastructure are managed by the clould provider.
5. Allows companies to use the latest version of software and hardware.