In times of tight
budgets and tighter timetables, one of the interesting options organizations
have for major projects is between capital spending (capex): outright
purchase and use over time and operational expenditure (opex): making
regular monthly payments. The simplest analogy is choosing between
purchasing a car (capex) and leasing it (opex).
Benefit of the Capex
Model:
A purchase may give an organization valuable depreciation tax
benefits. Depending on the organization's cost of capital, it may also be
cheaper for an organization to purchase it rather than lease it.
Benefit of the Opex
Model:
Opex does not require
an organization to make a major initial investment. Many
organizations have additional procedures for major purchases, which requires a
great deal of labor and slows down the purchase of an important
system. Many people enjoy leasing a car, because they receive a
brand new vehicle with the newest features when the lease is renewed:
this would be a huge benefit for the lease of a technology system.
Unlike a car lease
with a fixed term, many opex programs are monthly or otherwise short
term. A short term lease allows organizations to rapidly change
systems as their needs grow or change. Purchased systems will not
become obsolete in the face of changing technology. The advent of
cloud systems essentially removes the term, with rapidly scalable transmission
and networking power provided as needed.
eMAM offers both Capex
and Opex Models:
eMAM has offerings for
organization for any purchasing paradigm: systems installed on
organizational hardware, leased on Empress hardware, or deployed on flexible
cloud platforms. We can provide systems for full media asset
management, for LTO drives, for ingest stations, or for archive
systems. Companies can also avoid purchasing decisions altogether
by using services from Empress and its partners for digitization, digital
delivery, LTO delivery, or other services.
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