Capex vs Opex

Capex vs. Opex Software Solutions: How Different Are They? Understanding the difference between Capex and Opex software starts with the basics: At the highest level, Opex is an expense required for the day to day operation of a company, while Capex is an expense incurred to create a benefit in the future.

When it comes to procuring new equipment, capabilities, and software, IT professionals generally have two options: Obtaining new capabilities and equipment as a capital expenditure (CapEx). Obtaining them as an operating expense (OpEx).

On the other hand, the operating expenditures represent the daily expenses necessary to keep the business going. Opex is short-term costs and the expenses are fully tax-deductible. Opex can be fully deducted in the same accounting period in which the items are purchased.

Capex vs Opex