We are out of the financial crisis, and things are starting to shift, but the money is still tight. Deciding what to spend on money lies at the heart of success for many companies, something that IT and CFOs everywhere have to deal with.
What do we mean by CAPEX and OPEX?
Capex means capital expenditures and includes the money you spend on things like buildings, machines, and other amenities. Operating expenditure, or opex, is the money you spend on things like daily operating costs like wages, utilities, and repairs.
How to figure capex and opex in IT support
In the past, managers have preferred capital spending when it comes to IT infrastructure because they control how they are paid gradually and can track depreciation over time. It works when you have a clear idea of what your company needs for the future, and you are sure that the spending will be worth it and its effectiveness.
With the development of technologies such as the cloud, an increasing number of senior financial managers have begun to adopt a more operational spending approach, opting for managed support, and technical advice provided remotely. Seeing it as an opex instead of capex means you no longer need to invest in infrastructure, but you can pay for it consistently as you would any other tool.
Could you take advantage of it like capex?
The only real benefit that comes with purchasing your IT infrastructure is that, at some point, you can get it. The problem today is that technology is changing rapidly, and companies need to keep up with the latest developments if they are to compete. You are seeing IT as capital expenditures are becoming ‘outdated’, especially for small and medium-sized companies looking to expand.
Take advantage of information technology as support and orbit.
The debate about capex vs opex in information technology is really a bit of red herring. The real problem is whether organizations should invest in IT infrastructure, along with the costs of employing individuals to maintain it or outsource an external resource. It is a matter of money, yes, but also a matter of providing the best service.
The truth is that technology has now evolved to the point that information technology can be effectively provided remotely. A steady IT support provider can evaluate the IT infrastructure in your business, provide you with your current needs, and help you grow more efficiently.