Question

An organization has shifted from a capex to opex based spending model. which of these statements is true?

a. hardware procurement is done by a centralized team.
b. they will only pay for what they use.
c. they will only pay for what they forecast.
d. budgeting will only happen on an annual basis.

Answer 1

An organization adopting an OPEX spending model will only pay for what they use, as opposed to making large capital investments, allowing for more flexible budgeting and expenditures that more closely match usage.

Step-by-step explanation:

An organization shifting from a CAPEX (Capital Expenditures) to an OPEX (Operational Expenditures) spending model typically changes how it manages its finances in relation to acquiring equipment and services. When an organization adopts an OPEX model, it often means that:

• There is a shift away from large upfront costs associated with purchasing hardware or building infrastructure. Instead, the organization pays a recurring fee to lease or use services.
• This model allows payments to match usage, so organizations only pay for what they use, making costs more predictable and directly tied to consumption.
• Budgeting can be more flexible as it can be adjusted more frequently based on the changing needs of the organization, as opposed to a CAPEX model that typically involves long-term investment planning.

Based on these considerations, the statement that they will only pay for what they use is true when adopting an OPEX model. This means that choice B is correct: They will only pay for what they use.