The Cloud Part 4 -- Rent versus Own -- Dropbox versus iCloud
Capex vs. Opex - The Costs of Storing Your Data One of the great debates in cloud computing involves business economics and the inherent expense that stocking and running a data center entails. You may even hear the phrase "Capex vs Opex" in this debate. This phrase refers to the trade-offs of investing in building and operating your own data center (Capital Expenditure and Operating Expenditure) versus using someone else’s data center (Operating Expenditure) on a pay-as-you-go or rental model. It's important to consider the financial implications of both approaches in the long run - especially since “renting” costs less in the short term, but the investments in data centers will ultimately be passed on to the end users, making that approach more expensive. Owning and stocking a physical data center requires capital expenditure (Capex), large amounts of space filled with computer hardware, and the cash flow to pay the power bill. Many "cloud-based" d...