Gartner Research

Opex vs. Capex: CIOs Should Partner With CFOs

Published: 21 May 2015

ID: G00276812

Analyst(s): Jim McGittigan , Barbara Gomolski

Summary

Often, enterprise IT spending decisions are made on whether spending can be capitalized or not. With changes in delivery models, CIOs need to have a firm understanding of capitalization and partner with CFOs to ensure the right IT investments are made.

Table Of Contents
  • Impacts

Analysis

Impacts and Recommendations

  • CIOs' lack of understanding of capitalization and how it impacts corporate financials will hinder the development of a combined IT and finance approach to properly capitalizing IT assets
  • CIOs decisions to utilize delivery methods such as cloud will continue to be disproportionately driven by how these purchases impact opex and capex
  • Improper classification of opex or capex of IT costs can limit CIOs' abilities to invest in the right technologies
  • Conclusion

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