Gartner Research

Prepare Now for the Impact of Cloud on Opex/Capex

Published: 29 November 2016

ID: G00316061

Analyst(s): Jim McGittigan , Sanil Solanki

Summary

CIOs investing in cloud-based services must address the impact on the opex/capex mix or run the risk of losing opex funding. We explore the issues surrounding the impact of cloud and how to deal with key financial issues that often impede investment in the right technologies.

Table Of Contents

Analysis

  • Understand Your Current and Projected Opex/Capex Mix of IT Spend
  • CIOs Should First Communicate the Strategy to Move Away From IT Becoming an Internal "Software House" to Help Explain the Shift From Capex to Opex
  • Build a Well-Constructed Business Case That Includes a TCO View of IT Spend
  • Look to Capitalize Some Parts of Moving to the Cloud to Reduce the Impact on Opex
  • Summary of GAAP Changes That May Impact Your Opex/Capex Ratio

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