Question

In public cloud it incurs high CAPEX and less OPEX.

Answer 1

Public cloud: A public cloud is one where the cloud services are used by anyone, from anywhere and at anytime. Amazon web services is an example of public cloud.

CapEx: When the business could be beneficial or profitable beyond the current tax year and the expenses incurred is referred to as Capital Expenditure.

OpEx: The expenses that are required for the maintaining the eceryday operations of the business is referred to as Operational Expenditure.

Reason: In a public cloud, there is not a definite amount of users for the service. They may vary from hundreds to several thousands. The cloud should be developed in such a way that it is able to provide service to all it's users. This requires a high capital expenditure. As the users vary from time to time, the cost of operation is very less when compared to the capital expenditure.

Answer 2

A public cloud is one where the cloud services are used by anyone, from anywhere and at anytime.

Eg: Amazon web services.

CapEx refers to Capital Expenditure.

It occurs when the business could be beneficial or profitable beyond the current tax year.

Cost required to build the service.

OpEx refers to Operational Expenditure.

It is the expenses that are required for the maintaining the eceryday operations of the business.

Cost to run the service.

High CapEx and less OpEx:

• In a public cloud, there is not a definite amount of users for the service. They may vary from hundreds to several thousands.
• The cloud should be developed in such a way that it is able to provide service to all it's users.
• This requires a high capital expenditure.
• As the users vary from time to time, the cost of operation is very less when compared to the capital expenditure.