The dreaded riddle of “capex and opex”
There are two ways to spend money on things. One is to buy something outright and then own it. Accountants call this capital expenditure (“capex”) because you’re spending your company’s share capital. It then ends up on your balance sheet, meaning you count it as something of value that your company owns.
The other way is to rent. Accountants call this operational expenditure (“opex”) and instead of owning the thing forever you pay someone to give you access to it for a while. (View Highlight)
A home truth of mine is that software projects in fact look more like a liability than an asset. Software, whether anyone is getting any benefit from it or not attracts a huge number of very annoying expenses: security vulnerability scrambles, bug fixes and database upgrades, and all of it just lines the pockets of wealthy sysadmins. (View Highlight)
