Use This Simple Chart To Help Plan Your Next Data Centre Decision

Use This Simple Chart To Help Plan Your Next Data Centre Decision

Can’t decide whether you need a new data centre, an upgrade to your existing one or a shift to a cloud strategy? This chart sums up the main parameters to consider.

Computers picture from Shutterstock

The basic design of this chart comes from a presentation by Robert Bunger at Schneider Electric, which we featured in our recent Data Center World coverage. Think of it as a simplified version of the points we outlined in our 10 reasons to alter your data centre strategy post. Your plan will be more complex, but simple graphics are often helpful when trying to persuade management.

  Upgrade Build Outsource
Upfront cost (capex) Medium High Low
Cash flow impact (pex) Medium Low High
IT strategy Maintenance Replacement Rapid expansion


  • Whoever wrote this story shouldnt be writing about IT investment

    Up front costs are POPEX or CAPEX not OPEX
    Cash flow is OPEX not CAPEX

    Also, just because you outsource something doesnt mean the up front cost is low and the opex is high. Sometimes it can be the reverse.

    • An easy way to remeber these terms is to know what they stand for:
      CAPEX = CAPital EXpenditure
      OPEX = OPerational EXpenditure

      Captial Expenditure are generally items which involve an upfront cost (e.g. buying a PC outright) where as Operational Expenditure is generally an ongoing operational cost (e.g. buying a PC on a purchase plan over 12 months).

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