Two ways to recognize costs: one-time asset investment or periodic operational expenses.
CAPEX (Capital Expenditure) is capital investment cost, recognized once and depreciated over multiple years. OPEX (Operating Expenditure) is operating cost, recognized in the period incurred.
Purchasing a Server is CAPEX; renting Infrastructure is OPEX. This distinction affects budgeting and approval processes: large CAPEX items typically require higher-level approval and longer review cycles, while OPEX falls within annual operating budgets.
Many enterprises shift to infrastructure rental not because it is cheaper overall, but because it converts CAPEX to OPEX for easier cash flow.
