Capital Expenditure (CapEx): Money spent to buy

infrastructure

Additional cost to maintain infrastructure with time

You might need a team to manage the infrastructure

Example: Deploying your own data center with physical servers

Example: Purchasing Reservations

Example: Leasing Software

Operational Expenditure (OpEx): Money spent to use a

service or a product

Zero upfront costs

You Pay for services as you use them (Pay-as-you-go model)

Example: Provisioning VMs as you need them

Example: Using Serverless FaaS and paying for invocations