Wednesday, 7 March 2012

CAPEX vs OPEX Cash Flow Model in Cloud Computing

The graphs shown below want to establish a clear comparison between Cash Flow patterns when your organisation's IT services are on your own premises or on the cloud.

To differentiate the diverse costs incurred, I used following relation:

- A red line for CAPEX (Capital Expenditure). CAPEX, for those who may not know it, is referred to investments made (a one-off cost) in hardware and software licenses.

- A blue one for OPEX (Operational Expenditure). OPEX, is referred to operations costs, from keep your IT healthy to supporting evolutions in software.

- A green one to show the pattern of value added by the application. I guess this doesn´t need any explanation... if it does, do please contact me at or Tweet me at @asalbares

With the second graph, I want to reflect the behaviour of different costs when an organisation keeps its IT on the Cloud.

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