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CapEx vs OpEx for IT & Cloud

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CapEx vs OpEx for IT & Cloud

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CapEx vs OpEx for IT & Cloud

  1. 1. CapEx vs OpEx for IT & Cloud By Bhaskara Reddy Sannapureddy
  2. 2. What’s The Difference Between CapEx & OpEx  Capital Expenditures  Capital expenditures are the funds that a business uses to purchase major physical goods or services to expand the company's abilities to generate profits. These purchases can include hardware (such as printers or computers), vehicles to transport goods, or the purchase or construction of a new building. The type of industry a company is involved in largely determines the nature of its capital expenditures. The asset purchased may be a new asset or something that improves the productive life of a previously purchased asset.  Operating Expenses  An operating expense results from the ongoing costs a company pays to run its basic business. In contrast to capital expenditures, operating expenses are fully tax- deductible in the year they are made. As operational expenses make up the bulk of a company's regular costs, management examines ways to lower operating expenses without causing a critical drop in quality or production output. Capital expenditures are major purchases, and because their costs can only be recovered over time through depreciation, companies ordinarily budget for these purchases separately from preparing an operational budget.
  3. 3. CapEx Vs OpEx  CapEX (Capital Expenditure) is the start-up cost to be sustained for putting the asset/product into action. It is made of two main components, development cost and investment cost.  OpEX (Operational Expenditure) is the operating cost during the working life of the asset/product, including decommissioning.
  4. 4. CapEx, OpEx Story Video  https://www.youtube.com/watch?v=na4jbAh_vkQ&feature=youtu.be
  5. 5. CapEx vs OpEx
  6. 6. What Activities to be Automated Everyone should think about this – “80% of the support activities can be automated with the minimal CAPEX and rest 20% can be manually managed with the reduced OPEX”.
  7. 7. Storage-as-a-Service (OpEx) vs. Traditional Storage (CapEx) Storage as a Service is a business model in which a large company rents space in their storage infrastructure to a smaller company or individual. Storage as a Service is generally seen as a good alternative for a small or mid-sized business that lacks the capital budget and/or technical personnel to implement and maintain their own storage infrastructure. SaaS is also being promoted as a way for all businesses to mitigate risks in disaster recovery, provide long-term retention for records and enhance both business continuity and availability.
  8. 8. Service Oriented Storage Architecture
  9. 9. Advantages of Storage-as-a-Service  Cost- factually speaking, backing up data isn’t always cheap, especially when take the cost of equipment into account. Additionally, there is the cost of the time it takes to manually complete routine backups. Storage as a service reduces much of the cost associated with traditional backup methods, providing ample storage space in the cloud for a low monthly fee.  Invisibility- Storage as a service is invisible, as no physical presence of it is seen in its deployment and so it doesn’t take up valuable office space.  Security- In this service type, data is encrypted both during transmission and while at rest, ensuring no unauthorized user access to files.  Automation- Storage as a service makes the tedious process of backing up easy to accomplish through automation. Users can simply select what and when they want to backup, and the service does all the rest.  Accessibility- By going for storage as a service, users can access data from smart phones, netbooks to desktops and so on.  Syncing- Syncing ensures your files are automatically updated across all of your devices. This way, the latest version of a file a user saved on their desktop is available on your smart phone.  Sharing- Online storage services allow the users to easily share data with just a few clicks  Collaboration- Cloud storage services are also ideal for collaboration purposes. They allow multiple people to edit and collaborate on a single file or document. Thus, with this feature users need not worry about tracking the latest version or who has made what changes.  Data Protection- By storing data on cloud storage services, data is well protected by all kind of catastrophes such as floods, earthquakes and human errors.  Disaster Recovery- as said earlier, data stored in cloud is not only protected from catastrophes by having the same copy at several places, but can also favor disaster recovery to ensure business continuity.
  10. 10. Cloud Customer – Connected with IaaS, PaaS, SaaS
  11. 11. Cloud Storage Reference Model
  12. 12. Network Storage vs Hosted Storage vs Cloud Based Storage
  13. 13. Robotic Process Automation(RPA) to Reduce OpEx RPA is the automation of back and front office processes that are largely rules based, structured and repetitive. The automation replaces or augments humans normally performing the task with "robotic" equivalents. These are software robots and not physical ones
  14. 14. Enable High Impact with RPA
  15. 15. Thank You

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