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What is CAPEX and OPEX?

Although these two terms are often confused, the explanation for them is quite simple. See below:

CAPEX (Capital Expenditures) is the term used to refer to capital expenditures incurred by a company. This type of expenditure indicates investments in goods made.

The main capital expenditures are those purchases designed to be used over a long period of time, such as new equipment. Usually, they are investments in tools that will improve the tasks performed on a daily basis and, thus, bring a financial return to the business.

The type of purchase will vary from sector to sector, however the items purchased are aimed at expanding business and increasing profits, updating obsolete equipment or expanding the useful life of an asset. We can cite as examples of CAPEX:

computers and other devices,
real estate, automobiles, among others.
OPEX (Operational expenditure), in turn, is an acronym used to indicate the operational costs incurred by companies. Operating expenses are those related to daily operations and refer to investments in the allocation of services, that is, they are the “rents” of goods and provision of services paid monthly by the companies.

The main examples of OPEX expenses are:

equipment maintenance;
license fees;
insurance payments;
administrative property taxes;
Cloud services, among others.
This type of expense has become increasingly important in business due to advances in technology. Currently, most organizations no longer invest in physical servers, but in hiring cloud services.

The Linux administrator has an active role in patching, compiling, securing, and troubleshooting Linux servers in a heterogeneous environment. The professional performs system updates and server configurations.

Do you know what this means for your business? Expenses with new equipment - which will become obsolete and need repairs over time - can be exchanged for intelligent rental of resources in the Cloud, which are supported and updated directly by suppliers.
2020-12-19 01:00:25, views: 287, Comments: 0