Is CapEx or OpEx the Most Effective Cloud Cost Expense Strategy?
Did you know that over 80% of enterprises rely on multiple cloud computing services? Ensuring a stable multi-cloud setup requires detailed planning and management and this doesn’t exclude cloud cost expense management and proper planning to avoid costly surprises.
Traditionally, companies relied on in-house models for data centers that required a huge CapEx investment involving space, equipment, software, and a workforce to run everything. Today, with many companies moving to the cloud, companies still need the same security and oversight but with increased flexibility. In the following post, we will go into detail what you need to know about CapEx vs OpEx of operating your systems in the cloud.
3 Common Telecom Challenges Faced by Companies Today:
1. Forecasting for Future Expenses
In this time of uncertainty, it’s even harder to get one step ahead and build a technology strategy that is proactive instead of reactive.
2. Validating Telecom Invoice Accuracy
When you have hundreds or thousands of lines on bills and invoices there are bound to be errors. As your business scales (up or down) its important to get clarity and visibility into your invoicing. It’s also important to set limits and alerts for an added layer of protection.
3. Managing and Maintaining an Accurate Telecom Service Inventory
An accurate inventory is the foundation and its hard to identify where you can save and reduce costs if you’re not sure what you have.
CapEx vs OpEx and Your Cloud Cost Expense Strategy
While CapEX is the standard model of traditional IT procurement, OpEx is how cloud computing services are procured. They have very different implications for cost, control, and operational flexibility.
The public cloud is closely associated with cost savings since it doesn’t require upfront CapEx costs but it may not always be the most economical option unless you have active monitoring and governance in place. Its important to evaluate the needs of your business and assess how you can best optimize CapEx and OpEx associated costs with your cloud strategy.
Let’s look at how CapEx and OpEx compare:
The answer to “Should I use a CapEx or OpEx model for my infrastructure?” will always depend on the situation at hand, but we strongly recommend, before moving to the cloud, that you have a plan for monitoring and governing variable OpEx costs that carry risks that don’t exist in CapEx environments.
Interested in Getting Started, Fast? Check out our latest post on 5 Best Practices for Optimizing Costs in the Cloud here.
Planning Ahead for a More Manageable Cloud Migration
MacroNet has years of experience helping IT teams with their Telecom & Cloud Opex by bench-marking, governing and co-managing their monthly BPO’s. Our focus narrows the evaluation of your telecom and cloud costs while not reducing infrastructure performance.
Our hybrid model consists of industry experts and SaaS governance tools which typically result in a 20-30% opex reduction. Trust industry experts with 20+ years of experience governing, designing and implementing telecom and cloud-based infrastructure across 200+ vendors.