DZone

Migrating to the cloud delivers major cost savings and improved ROI. Transferring IT spending to a pay-as-you-go, operational expense (OpEx) model significantly reduces capital expenses (CapEx), as well as providing other benefits. That’s why a pay-as-you-go plan for cloud services has become the default for most businesses today.

It wasn’t always that way. Traditionally, IT paid for hardware and budgets were CapEx-oriented. Companies would make a large upfront investment in storage, servers, routers, etc., and then leverage it for years. Everything was planned and monitored. The primary benefit of a CapEx model is stability: you know exactly what your costs will be on an annual basis, if not on a longer timeline. But the predictable costs didn’t always mean predictable results.

Source: DZone