Breaking Down the OpEx vs. CapEx Cloud Computing Debate
Asset Operation Model vs. Asset Ownership Model
“The organizational friction involved with resource management is so high that most IT groups, when performing an OpEx vs. CapEx analysis, assume full-time operation of the highest amount of resource required at application peak load, and then use that basis to evaluate the asset rental against and the asset ownership models. It simply doesn't make sense to perform the evaluation in any other way. This friction is vastly reduced, though, in a properly managed cloud environment. Tools can be used to automate resource instantiation and termination, even to the point where the application itself autonomously manages this process and no manual intervention is required.” But, really, is car rental vs. ownership the right analogy to make this point?
Bob Sterling
























