Q19: What is the primary difference between capital expenditure (CapEx) and operational expenditure (OpEx) in the context of cloud computing?

What is the primary difference between capital expenditure (CapEx) and operational expenditure (OpEx) in the context of cloud computing?

1. A. CapEx applies only to software licenses while OpEx applies to hardware
2. B. CapEx is a recurring monthly cost while OpEx is a one-time investment
3. C. CapEx involves upfront investment in physical infrastructure while OpEx involves pay-as-you-go cloud spending
4. D. CapEx and OpEx are identical in cloud financial models

✅ Correct Answer: C. CapEx involves upfront investment in physical infrastructure while OpEx involves pay-as-you-go cloud spending

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