FUNDAMENTALS OF COMPUTER

Detailed explanation-1: -The traditional approach prioritizes capital expenditure (CapEx), whereas cloud economics favors operating expenses (OpEx).

Detailed explanation-2: -CapEx is defined as business expenses incurred in order to create long-term benefits in the future, such as purchasing fixed assets like a building or equipment. Some examples of IT items that fall under this category would be whole systems and servers, printers and scanners, or air conditioners and generators.

Detailed explanation-3: -Cloud Computing enables CAPEX (Capital Expenditure) savings as businesses no longer need to invest in costly infrastructure. The very nature of the cloud, reduces OPEX (Operational Expenditure) that would be very difficult, if not impossible to replicate in an on premises environment.

Detailed explanation-4: -Instead of purchasing software altogether, cloud computing allows you to subscribe to it. This means you only pay for it when you need it, and it also gives you flexibility: it can be scaled up and down quickly and easily to meet demand.