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0 pointstomc19854y ago0 comments

There's a finance angle behind cloud stuff too that's irrestible for the bean counters: cloud stuff is operations expense, on-prem is a capital expense. Unfortunately these folks are heavily incentivized to favor OpEx

I'm not a bean counter, all I know is those guys at my last job would rattle off about it like zombies. IIRC its a tax thing

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6 comments · 3 top-level

jscheel4y ago· 2 in thread

Opex is fully deductible each year the expense occurs, wheras capex requires amortized depreciation over the life of the purchased item. Makes it harder to calculate taxes.

jannes4y ago

Should we call it Amortisation as a Service (AaaS) then?

Is that really the only benefit?

I mean, I'm not a bean counter. I'm just guessing that's why they like it.

goodpoint4y ago· 1 in thread

Wrong. People has been leasing on-prem hardware for decades before the cloud existed.

Depending on taxation rules you might want to buy or lease.

tomc1985OP4y ago

At this employer it seems most of the stuff in their datacenter was purchased.

It's not a tax thing, long-term leases or colocation is a liability for acquisitions. (You could also build a revenue-positive company, but that's the loser way out, apparently.)

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