Workplace glossary

What is CapEx vs OpEx?

Definition & practical guide1 min read

CapEx (capital expenditure) buys long-lived assets: fit-outs, furniture, AV hardware, sensors. OpEx (operating expenditure) pays for ongoing running costs: rent, services, software subscriptions. The split matters because the two are budgeted, approved and accounted for differently.

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Workplace technology has shifted firmly to OpEx: cloud platforms on subscription rather than owned systems on servers. That usually means faster approval cycles and no depreciation tail, which is one reason software-led workplace change moves quicker than construction-led change.

Common questions

What does CapEx vs OpEx mean in simple terms?

CapEx (capital expenditure) buys long-lived assets: fit-outs, furniture, AV hardware, sensors. OpEx (operating expenditure) pays for ongoing running costs: rent, services, software subscriptions. The split matters because the two are budgeted, approved and accounted for differently.

How does CapEx vs OpEx work in practice?

Workplace technology has shifted firmly to OpEx: cloud platforms on subscription rather than owned systems on servers. That usually means faster approval cycles and no depreciation tail, which is one reason software-led workplace change moves quicker than construction-led change.