CapEx vs OpEx in cloud migration
WHAT IT TESTS: the financial shift cloud enables. OUTLINE: CapEx is large upfront asset spend, OpEx is ongoing pay-as-you-go cost; cloud shifts spending from CapEx to OpEx, trading ownership for flexibility.
WHAT IT TESTS: whether you understand the business and financial rationale for cloud, not just the tech. ANSWER OUTLINE: CapEx is large upfront capital spent buying and owning assets like servers and data centers, depreciated over years; OpEx is ongoing operational spend like the monthly bill for consumed cloud resources. Migrating to cloud shifts spending from CapEx to OpEx, replacing big upfront purchases with pay-as-you-go costs that scale with usage and improve agility and cash flow.
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- #capex
- #opex
- #cloud-economics
- #cloud-migration
- #finops
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