CFO Edge Logo
  Home > Resources > IT Investments: CapEx or OpEx Article  

Should You Use CapEx or OpEx for IT Investments?

  Sherry Rahbar, Partner, CFO Edge, LLC  
  Open as PDF Open the entire article as a PDF  
  Article Summary  
Whether Los Angeles and Southern California executives should use CapEx or OpEx for IT investments is dependent on weighing the pros and cons of both.

While the capital expense (CapEx) model has traditionally been used to buy software, computers and other IT equipment, there are a number of advantages for using the operating expense (OpEx) model.

Software as a Service (SaaS) and cloud computing present the attractive option of "leasing" IT equipment rather than buying it outright.

Reviewed in this article are seven benefits that can occur with an OpEx model, as well as five potential challenges that can come with it.

Deciding whether OpEx or CapEx is right for your business is based on an assessment of both models along with evaluations of potential vendors and risk factors.

Executives weighing the advantages and costs of OpEx and CapEx models can benefit from talking with a provider of outsourced CFO services with a proven track record of evaluating, implementing, and managing both models.

  Open as PDF Open the entire article as a PDF  
Subscribe to CFO Inside Edge

Our monthly newsletter delivers first notice of new white papers and articles plus remarks on performance challenges and solutions. View past issues and subscribe.

CFO or Controller: What's Right for Your Business?
White Paper
CFO or
What's Right
for Your
Outsourced CFO Services
White Paper
CFO Services
Performance Measurement
White Paper
Performance Measurement
Strategic Planning & Forecasting
Year-End Strategic Planning & Forecasting
Planning a Business Exit White Paper
White Paper
Planning a
Business Exit
CFO Edge Blog CFO Edge on Twitter CFO Edge on LinkedIn
Intuit Certifications