What is the thing about CAPEX and OPEX

In the past 2 to 3 years Microsoft’s messaging has included the terms CAPEX and OPEX and I had assumed that everyone understood the terms. Recently a conversation with fellow partners revealed that the terms have been received with ambiguity. In that conversation which happened by email I wanted to capture this note for the general public which helps to clarify why OPEX maybe preferable for tax avoidance on what are truly operating expenses. Talk about swapping capex to opex is essentially related to tax avoidance and not reducing payroll costs. In capital expense (CAPEX) you incur a large expense in one … Continue reading What is the thing about CAPEX and OPEX