From the course: AWS Certified DevOps Engineer Professional (DOP-C02) Cert Prep

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Trade fixed expense for variable expense

Trade fixed expense for variable expense

From the course: AWS Certified DevOps Engineer Professional (DOP-C02) Cert Prep

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Trade fixed expense for variable expense

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- [Instructor] Trading fixed expense for variable expense simply means that you'll gain more flexibility when it comes to paying your IT resources. There are two types of expenses that you have to consider here. You have the fixed expense and the variable expense. These two relate to both the CapEx and opex of the company. Capital expenditures or CapEx for short refers to the long term asset acquisition or one of purchases incurred by the company to establish its business operation. Operating expenses or opex on the other hand, are the recurring payables for running the resources necessary to operate the business. Running a physical data center has a set of fixed expenses that are constant or don't vary over time. Most companies spend large upfront investments to buy the necessary hardware for their data centers, such as rack server for computing, register for networking hardware, security mods for encryption, HGD and SSA drives for storage, as well as the physical facilities where…

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