A CIO wants an example of operational expenditure (OpEx) when moving to the cloud instead of capital expenditure (CapEx). Which is an OpEx example?

Monthly Azure service charges are an example of operational expenditure (OpEx) because they represent ongoing costs for services consumed, paid typically on a subscription or pay-as-you-go basis. This aligns with the OpEx model where expenses are incurred and expensed in the period they are used. Purchasing physical servers and buying a new data center are examples of capital expenditure (CapEx) because they involve significant upfront investments in assets that provide long-term value and are depreciated over time. Building an in-house IT team, while an ongoing cost, is generally considered an investment in human capital rather than a direct cloud operational expense.