IT FINANCE
IT FINANCE : THE OPEX SWING
The unstoppable march of Anythingas-a-Service ( XaaS ) means balance sheets are shifting from CAPEX to OPEX . Technology looks at the pros and cons
WRITTEN BY : PADDY SMITH
IT finance has had a shake as platforms move to the Anythingas-a-Service ( XaaS ) model . Previously , implementations came with enormous costs that were budgeted as one-off expenses , amortised over the expected life of a platform . The move to XaaS has meant customers are able to budget year-on-year costs , while providers take a budget hit in their first year balance sheets .
Simon Everidge , interim managing director at Rigby Capital UK , estimates the swing from CAPEX to OPEX to be at least 10 per cent . He attributes this to the rise in the XaaS economy . “ The subscription model is becoming the preferred means of funding IT investment . Resellers and their customers want to be able to keep pace with technology investments in a more flexible , cost-efficient and transparent way , ensuring optimal ROI for their businesses .
“ Combine this shift with the current challenging economy and market conditions and it is easy to see why resellers and their customers are facing uncertain times when it comes to funding investments in technology solutions .”
Everidge maintains it is a win-win for providers and customers , but even if it wasn ’ t there is plenty of innovation in
“ Resellers and their customers want to be able to keep pace with technology investments in a more flexible , cost-efficient and transparent way , ensuring optimal ROI for their businesses .”
SIMON EVERIDGE INTERIM MANAGING DIRECTOR , RIGBY CAPITAL UK
90 April 2021