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Are you referring to the hardware cost vs operating cost? Or how the units are financed?
by hn72774 2y ago
Are you referring to the hardware cost vs operating cost? Or how the units are financed?
- idiotsecant 2y agoThat's what it means. Some things are expensive to buy, some things are expensive to run, and some things are both.
- hn72774 2y agoThe terms in that context are fixed cost vs variable cost. CapEx vs OpEx deals with how the equipment is managed financially. Buy vs lease/rent/IAAS. Good examples here https://centersquaredc.com/blog/choosing-the-best-data-center-strategy-is-capex-or-opex-right-for-you https://centersquaredc.com/blog/choosing-the-best-data-cente...
- tuatoru 2y agocapex = capital expenditure; opex = operational expenditure. There's some theorem about investments that says it doesn't matter how they are financed. A good one is good, and a bad one is bad, whether or not you use debt.
- actinium226 2y agoI'll bet you I can find a way to finance a good deal that turns it into a bad one. The other way around seems harder.
- marcosdumay 2y ago> it doesn't matter how they are financed If you have spherical banks in a vacuum, you can simply follow "capital_opex = capex * interest_rate" and then "profit = revenue - total_opex". But things tend to not work that way on practice.