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Why IT's economics revolution is more than OpEx and CapEx

Bernard Golden | Oct. 3, 2013
Many view cloud economics as a question of operating expenses versus capital expenses -- or, more simply, the cost to rent versus the cost to buy. It's more complicated than that, though, since the cloud forces organizations to more thoroughly examine all costs associated with providing IT services.

Cloud computing is serving as a forcing function within IT, causing it to move from a semi-handcraft industry based on infrastructure investment to a fully-automated one based on offering fine-grained computing resources. The financial practices fully capable of supporting the former are no longer sufficient for an accelerated environment of transient resource use.

 

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