OPex (operational expende\iture) vs CAPex (capital expenditures) reporting rules steer companies toward going into the cloud, which is classified as Opex. Running your own DC is classified as capex. Capex makes shareholders very unhappy when expensive investments in infrastructure are bought. If the government wanted to, it could change the rules such that cloud company fees counted as CAPex, and the cloud companies would drastically shrink.
Private cloud is better than public cloud for different goals.
Here, though, DC costs can be swept under the rug.
OPex (operational expende\iture) vs CAPex (capital expenditures) reporting rules steer companies toward going into the cloud, which is classified as Opex. Running your own DC is classified as capex. Capex makes shareholders very unhappy when expensive investments in infrastructure are bought. If the government wanted to, it could change the rules such that cloud company fees counted as CAPex, and the cloud companies would drastically shrink.
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