Page 15 - CARAHSOFT, August 2021

An OpEx approach makes sense for many agencies because the initial cost of cloud adoption can be high. They get the most benefit from OpEx when they have a subscription and pay only for the services they use. However, in long- term environments, it would be better to designate that spending as CapEx if possible.
Furthermore, the funding model for multi-cloud environments should be a blend of OpEx and CapEx. I recommend that
agencies look at what they’re spending year over year and try to move the well-known, long-running and predictable consumption of resources into CapEx while using OpEx for demands that are hard to forecast or have a high level of fluctuation, usually
in response to the needs of end users or customers.
Dell Technologies is uniquely positioned to offer the same technology, services
and resources under CapEx, OpEx or a combination of the two. We can do that
blend however it’s needed because we’re not changing the technology. Our approach also helps agencies better understand and forecast their costs.
By reconsidering their approach to building and funding multi-cloud environments, agencies can mature the way they manage a technology that is becoming foundational for government operations.
Patrick Thomas is cloud technologist at Dell Technologies.
Learn more at Carah.io/FCW-Multi-Cloud-Dell
Beyond the total cost of ownership, agencies need to reevaluate how they pay for cloud products and services.
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