Are you confused about Capex vs. Openx when discussing IT projects? Let’s break it down and make things clear!

Capex (Capital Expenditure) refers to large investments in long-term assets that benefit the company and are not intended for immediate resale or use. In the IT world, Capex investment might involve purchasing proprietary software licenses, infrastructure equipment or enterprise applications. This type of expenditure needs to be approved by senior executives and often requires a business case assessment.

OpenX (Operating Expenditure) is money spent on products and services that are used up or consumed quickly. In the IT world, this might include cloud computing subscriptions for SaaS (Software as a Service), software development services or PaaS (Platform as a Service). This type of expenditure can typically be approved without necessitating a business case assessment.