Cloud Economics

Capital Expenditure (CapEx) - a (usually large) amount of money invested in an asset (building, computers, equipment) spent up front, and it returns profits slowly over time; major cash drain or loan required; cannot be deducted from your taxes in one year, depreciated over several years

Operating Expenditure (OpEx) - an amount of money spent “every month” as an operating expense; hopefully, you earn more money in revenue from it than you spend; can be deducted from your taxes immediately; many accountants prefer OpEx over CapEx for the tax and cash flow benefits

Consumption-Based Model - paying for something based on how much you used, as opposed to paying for something no matter if you use it or not