Operational Expense Models

OpEx Models

OpEx Model designed by our team of experts at SBA covers a wide range of expense types and help you choose whether to incur an operating expense or a capital expense.

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OpEx model and why should you choose SBA's OpEx models?

Operating expenses are expenses that add up during regular business and when your organization wants to quickly scale up or in addressing your dynamic needs. OpEx Model designed by our team of experts at SBA covers a wide range of capex investments that can be spent as Opex expense towards scaling your IT infra for dynamic and urgent IT Infra needs. SBA’s Opex offerings cover DC build, Back up as a Service, Authentication as a Service, Desktop as a Service, while making it easy to manage / secure / trouble shoot your heavily dependent IT infrastructure parallelly. This helps to release your Capex available in meeting your core business needs & functions.

Management is often tasked with decreasing OpEx spending without blunting the firm’s ability to compete or produce. Unlike the depreciation of CapEx, OpEx are fully tax-deductible in the year they are made.

Determining CapEx vs OpEx

The Major IT infrastructure such as servers, storage, HCI, Network & Info Security solutions can be purchased either as a capital item or as an operating expense item. For example:

  • You can pay cash and own the item outright as a capital expense.
  • You can lease the item or sign a hosting contract with a managed services provider (MSP) that provides access to the equipment as a service for a monthly cost, making the purchase an operating expense item.

Having the choice between CapEx and OpEx for acquiring new IT capabilities isn’t a novel development. These options have been with us in various shapes and forms for a long time. The difference today is that with new cloud hosting capabilities, using OpEx procurement to obtain major IT equipment and services is easier today than it’s ever been.