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Digital and Cloud Solutions – Impact of Opex Solutions on a CapEx Centric Utility Industry
The digital era has given a new course to the age-old discussion on CapEx-OpEx optimization. The direct impact of technology on financial levers of utilities business was never so great. Operationalization of capital expenditure opens up a wide range of possibilities like minimized upfront investments, improved asset usage ratios, increased average revenue per unit, average margin per user, and cost of asset recovery.
Accounting for Software: Understanding CAPEX and OPEX
For IT managers, understanding the rules around accounting for software costs can be a confusing subject. This report provides a primer on the difference between capital expenditures (CAPEX) and operational expenditures (OPEX) and how they relate to accounting for software costs. We also outline how these principles vary according to the application development method that is used, whether a traditional waterfall approach or a newer process, such as agile development. Finally, we highlight the factors that drive business leaders to favor CAPEX or OPEX in accounting for software. (11 pp., 1 fig.) [Research Byte]