CapEx versus OpEx: What’s the Best Way to Fund Your Software Purchase?

Software Purchase CapEx vs. OpEx

The sheer number of EHSQ software solutions in the market can make the software buying journey very complex. In addition, getting buy-in from internal stakeholders can be equally as challenging. With the introduction of cloud-based or software as a service (SaaS) options, where the licensing component is considered an operational expense, comes an additional consideration: whether to view the expense as a capital expenditure (CapEx) or an operating expenditure (OpEx).

Purchasing EHSQ software–and this is true of most large procurement projects– requires a lot of research and preliminary work to ensure that you are making the best long-term decision. Not only can the process be long and arduous, there are also many factors to consider and many scenarios to examine. In fact, when it comes to deciding which software solutions to select, technology and technological capability are merely one aspect of the final decision. As such, one of the most important … Read more...