CAPEX vs OPEX

CAPEX:

• Capital Expenditure

• The upfront costs on physical hardware, such as costs from servers, storage, networking and all the other infrastructure costs.

• Private cloud.

• You have to guess capacity and sometimes might buy things you won't use.

OPEX:

• Operational Expenditure

• A consumption-based model - Only pay for what you use - No upfront costs.

• Public cloud.

• You can stop guessing your capacity and it can also be cheaper because you only pay for what you use.