CapEx, OpEx and Consumption-based

Source: https://www.youtube.com/watch?v=WiwV9wb0GMo&list=PLlVtbbG169nED0_vMEniWBQjSoxTsBYS3&index=3

Capital Expenditure - Pre-purchasing a particular asset that you plan to use for a certain period of time

• Depreciate this over a period of time

Operational Expenditure - Purchasing a resource as we use it (Cloud) AKA consumption based

• Allows a company to only pay for what they need whether it be hardware or licensing

• As the company grows, you can easily pay for more resources to continue that growth

• Ex. A pizza company might be really busy on Friday nights, but not so busy on other days