2 ms·
I have read about a dozen and a half articles about capex vs. opex, and it still makes absolutely no sense to me why companies prefer paying over double for ope
by ocdtrekkie 5y ago
I have read about a dozen and a half articles about capex vs. opex, and it still makes absolutely no sense to me why companies prefer paying over double for opex what they'd pay for equivalent capex over the same lifecycle.
Either corporate accounting is some mystical art that makes money appear where there isn't if certain practices are followed, or there's some collective mass delusion that opex is just better? I don't know, it's a concept that truly baffles me.
- citrin_ru 5y agoFor a startup it makes perfect sense to avoid high CAPEX: it is not worth to invest into own infrastructure which will have positive ROI in 3 years, if you are not sure that you startup will still be alive in 3 years. Why big established companies prefer high OPEX to lower CAPEX is less clear.
- ocdtrekkie 5y agoIndeed, I fully understand why a startup goes for the cloud: Either it scales fast enough that the dynamic scaling of cloud is key, or it fails and assets become pointless anyways. But even then, once a startup hits a certain level of stability, it makes sense to invest in your own infrastructure to minimize expense.