IT Capital Expenditure vs. IT Operating Expenditure: Which makes sense for your business?
Well, what should it be – buy or lease your IT infrastructure? Two titanic strategies are fighting it out for supremacy, and there can be only one winner. CAPx This is the way it’s always been done, and the concept is straightforward enough: you pay up front to purchase all the hardware, software, and peripherals that you’re going to need, planning for a specific lifecycle. You handle installation, configuration, and day-to-day management. Outside of limited (usually very limited) warranties, you take responsibility for whatever breaks, and you have to fix it. You pay more up front, but you maintain absolute ownership and control, in the most immediate hands-on sense, of all aspects of your IT infrastructure. The gear you buy shows up on your balance sheets as a company asset, and you might even gain tax benefits too, through purchase or depreciation. OPx This upstart strategy is gaining traction in a lot ...