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  • Capex, Opex and Marginal Cost of Adopting Cloud

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    Capital expenditures refer to costs of producing goods or services for customers, while operational expenditures are continual costs of operating a business. For cloud computing to provide a favorable return on investment, it must fulfill its capacity within the limits of either capital or operational expenses. Ensuring capital expenditures are higher than operational expenditures helps balance finances and avoids bankruptcy by creating a larger asset base to offset debt from operations.

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    marginal cost

    Оригинальное название

    Cloud

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    Capital expenditures refer to costs of producing goods or services for customers, while operational expenditures are continual costs of operating a business. For cloud computing to provide a favorable return on investment, it must fulfill its capacity within the limits of either capital or operational expenses. Ensuring capital expenditures are higher than operational expenditures helps balance finances and avoids bankruptcy by creating a larger asset base to offset debt from operations.

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    17 просмотров1 страница

    Capex, Opex and Marginal Cost of Adopting Cloud

    Загружено:

    923349898910
    Capital expenditures refer to costs of producing goods or services for customers, while operational expenditures are continual costs of operating a business. For cloud computing to provide a favorable return on investment, it must fulfill its capacity within the limits of either capital or operational expenses. Ensuring capital expenditures are higher than operational expenditures helps balance finances and avoids bankruptcy by creating a larger asset base to offset debt from operations.

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    © All Rights Reserved
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    Отметить как неприемлемый контент
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    CapEx, OpEx and Marginal cost of adopting Cloud

    The capital expenditure and operations expenditures are the cost incurred by the business enterprise
    in the pursuit of entrepreneurial excellence. Operation expenditures refer to the continual cost of
    operating a business or a system while capital expense refers to the cost of producing goods or
    services for the customer. With respects to the analogies drawn from both OpEx and CapEx, it is crucial
    that cloud computing must fulfill its capacity within the confines of either expense. Any deviation from
    the set limit will create an unfavorable return on investment (ROI) thus making the endeavor null.
    Naturally the capital expenditure should be more than the operation expenditure in order to balance
    out the balances and to avoid bankruptcy. The capital expenses translate to a higher asset base that
    could offset any debts created by operations expense.

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