Cloud OPEX vs. CAPEX – Which is the Better Choice?
Grazed from Smart Data Collective. Author: Paul Barsch.
Among CIOs and CFOs debate swirls regarding how to best budget for and acquire IT resources. The key questions are; should companies own, lease or essentially “rent” IT services via cloud computing? It’s actually a tougher choice than you may think.
An Economist article explains the "Big Data" conundrum facing global enterprises. Data volumes are increasing faster than many companies have the capacity to store much less mine them for insights. In this exploding “data revolution” many companies are also finding their internal processes—much less budgets—for acquiring technology are not keeping up with business user needs.
That’s why cloud computing is so attractive. With the public cloud model, compute, memory and storage can be acquired on a “pay per use” basis. In the public cloud there is typically no hardware/software to buy upfront, thus companies can use operating expense budgets (OPEX) to fund their needs, giving them plenty of budgeting flexibility. The alternative is to purchase needed hardware and software outright—thus capitalizing assets (CAPEX)…


CA Technologies and
Today, Rackspace Hosting, the open cloud company, announced the release of