How to Break Down the OpEx vs. CapEx Cloud Computing Debate
The debate about the economic benefits of cloud computing is intense, and is commonly boiled down to a talking point labelled OpEx vs. CapEx. Very often, like many talking points, the headline conflict is really a stalking horse that conceals the true source of conflict.
In the case of OpEx vs. CapEx, what often underlies the discussion is really an indirect, coded debate about the future of IT infrastructure and operations groups: Will they be operators of assets owned by the larger organization, or will they be operators of assets owned by an external provider?
It doesn’t take a genius to understand why being responsible for operating hundreds of millions of dollars of owned assets, along with all of the people associated with ownership (technical evaluation, vendor relationships, capacity planning, etc.), is typically seen as more prestigious and important than managing assets from an external provider who takes responsibility for all of those areas. An even more nightmarish vision is that infrastructure and operations groups will be cut out of the equation entirely, with application groups taking responsibility for dealing with external providers, leaving I&O with a dwindling responsibility set, managing an ever-eroding installed asset base…

