Economies of scale

• ability to reduce costs and gain efficiency(larger scale v.s. smaller scale)

Compare CapEx vs OpEx

• CapEx(Capital Expenditure)
• • Server costs
• • Storage costs
• • Network costs
• • Backup and archive costs
• • Organization continuity and disaster recovery costs
• • Datacenter infrastructure costs
• • Technical personnel
• OpEx(Operational Expenditure)
• • Leasing software and customized features
• • Scaling charges based on usage/demand instead of fixed hardware or capacity
• • Billing at the user or organization level