Cloud economics: CapEx vs OpEx, variable cost, economies of scale, and pay-as-you-go

By the end you’ll be able to

• Differentiate capital expenditure (CapEx) from operational expenditure (OpEx) in the context of on-premises infrastructure and AWS consumption.
• Explain how pay-as-you-go pricing changes procurement and budgeting by aligning cost more closely to actual usage.
• Describe variable expense as a cloud benefit, including the ability to increase or decrease spending based on demand rather than fixed ownership costs.