Podcast
Questions and Answers
Which type of investment involves purchasing assets upfront?
Which type of investment involves purchasing assets upfront?
- Infrastructure assets
- CapEx (correct)
- OpEx
- Long-term investments
Which investment model allows you to pay for resources as you use them?
Which investment model allows you to pay for resources as you use them?
- CapEx
- Infrastructure assets
- Long-term investments
- OpEx (correct)
Which investment type minimizes the risk of overcommitting resources and stifling innovation?
Which investment type minimizes the risk of overcommitting resources and stifling innovation?
- Infrastructure assets
- CapEx
- OpEx (correct)
- Long-term investments
Which model involves purchasing assets upfront and depreciating them over time?
Which model involves purchasing assets upfront and depreciating them over time?
Which model is commonly used in the cloud and involves paying for resources and services as you use them?
Which model is commonly used in the cloud and involves paying for resources and services as you use them?
Which model enables organizations to scale their resources according to their actual needs, resulting in cost efficiency?
Which model enables organizations to scale their resources according to their actual needs, resulting in cost efficiency?
Flashcards
CapEx
CapEx
Purchasing assets upfront.
OpEx
OpEx
Paying for resources as you use them.
OpEx
OpEx
Minimizes risk of overcommitting resources and stifling innovation.
Capital Expenditure (CapEx)
Capital Expenditure (CapEx)
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Operational Expenditure (OpEx)
Operational Expenditure (OpEx)
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Consumption-Based Model
Consumption-Based Model
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Study Notes
Investment Models
- Capex (Capital Expenditure) Model: Involves purchasing assets upfront, depreciating them over time, and is a traditional investment model.
Alternative to Capex
- Opex (Operational Expenditure) Model: Allows users to pay for resources as they use them, minimizing the risk of overcommitting resources and stifling innovation.
Cloud Computing
- Pay-as-you-go Model: Commonly used in the cloud, involves paying for resources and services as they are used, enabling organizations to scale their resources according to their actual needs, resulting in cost efficiency.
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Description
Test your knowledge on the differences between capital expenditure (CapEx) and operational expenditure (OpEx) and gain an understanding of the consumption-based model. Identify key assets involved in CapEx and learn how it impacts business expenses.
