Re: Java Upgrade classification
"Shelton C. Johnson Jr." <scj78-java-/[email protected]> Sun, 28 Oct 2018 18:24:15 +0000 (UTC)
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=20
Simply CapEx is short for Capital Expenditure - or in other terms an invest=
ment of resources in something with long term value - something thought of =
as an asset, often associated with purchasesOpEx is short for Operating Exp=
ense or Expenditure - this is cost of doing business type items, and more o=
ften associated with services or recurring costs.
For example buying a server would be CapEx. Paying for cloud hosting fees i=
s often considered OpEx. Software licenses sometimes fall in the middle dep=
ending on how the finance department wants to look at it and how the licens=
e is structured.
If a Java upgrade entailed an enterprise licensing expenditure to ensure su=
pport a case could be made for either. If it is simply the effort of updati=
ng the Java run-time on all of the servers, that would typically be OpEx.
Does that help?
On Sunday, October 28, 2018, 2:09:45 PM EDT, Narahari 'n' Savitha <savi=
[email protected]> wrote: =20
=20
For the none knowledgeable what is CAPEX or OPEX?
What's got to do with Java ?
On Thu, Oct 25, 2018, 17:19 Ramesh Kulkarni <[email protected]>=
wrote:
Hello
As we are preparing the 2019 budget, I added Java Upgrade project for next =
year and I was having a discussion with our controller on how that project =
can be categorized: CAPEX or OPEX.=C2=A0
My thinking was as we need to keep our site secure and as part of that we n=
eed to make the necessary software upgrades that benefits all the customers=
on the platform, can it be considered a CAPEX?=C2=A0
But our controller was saying this cannot be considered CAPEX as we are not=
building new features for the asset. I partially agreed with her argument =
and thought of doing some research on the internet but could not find any l=
ink.=C2=A0
So I thought I would ask this group to see how other companies have categor=
ized this work and does anyone think this should be a CAPEX? If so what wou=
ld be their argument?=C2=A0
Thanks in advanceRamesh_______________________________________________
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<div><br></div><div>Simply CapEx is short for Capital Expenditure -=
or in other terms an investment of resources in something with long term v=
alue - something thought of as an asset, often associated with purchases</d=
iv><div>OpEx is short for Operating Expense or Expenditure - this is cost o=
f doing business type items, and more often associated with services or rec=
urring costs.</div><div><br></div><div>For example buying a server would be=
CapEx. Paying for cloud hosting fees is often considered OpEx. Software li=
censes sometimes fall in the middle depending on how the finance department=
wants to look at it and how the license is structured.</div><div><br></div=
><div>If a Java upgrade entailed an enterprise licensing expenditure to ens=
ure support a case could be made for either. If it is simply the effort of =
updating the Java run-time on all of the servers, that would typically be O=
pEx.</div><div><br></div><div>Does that help?</div><div><br></div><div><br>=
</div>
=20
</div><div id=3D"yahoo_quoted_1339084547" class=3D"yahoo_quoted">
<div style=3D"font-family:'Helvetica Neue', Helvetica, Arial, s=
ans-serif;font-size:13px;color:#26282a;">
=20
<div>
On Sunday, October 28, 2018, 2:09:45 PM EDT, Narahari '=
n' Savitha <[email protected]> wrote:
</div>
<div><br></div>
<div><br></div>
<div><div id=3D"yiv7590771903"><div><div>For the none knowl=
edgeable what is CAPEX or OPEX?<div><br clear=3D"none"></div><div>What's go=
t to do with Java ?</div></div><br clear=3D"none"><div class=3D"yiv75907719=
03gmail_quote"><div class=3D"yiv7590771903yqt7090504126" id=3D"yiv759077190=
3yqt65336"><div dir=3D"ltr">On Thu, Oct 25, 2018, 17:19 Ramesh Kulkarni <=
;<a rel=3D"nofollow" shape=3D"rect" ymailto=3D"mailto:ramesh.c.kulkarni13@g=
mail.com" target=3D"_blank" href=3D"mailto:[email protected]">r=
[email protected]</a>> wrote:<br clear=3D"none"></div><blockq=
uote class=3D"yiv7590771903gmail_quote" style=3D"margin:0 0 0 .8ex;border-l=
eft:1px #ccc solid;padding-left:1ex;"><div dir=3D"ltr">Hello<div><br clear=
=3D"none"></div><div>As we are preparing the 2019 budget, I added Java Upgr=
ade project for next year and I was having a discussion with our controller=
on how that project can be categorized: CAPEX or OPEX. </div><div><br=
clear=3D"none"></div><div>My thinking was as we need to keep our site secu=
re and as part of that we need to make the necessary software upgrades that=
benefits all the customers on the platform, can it be considered a CAPEX?&=
nbsp;</div><div><br clear=3D"none"></div><div>But our controller was saying=
this cannot be considered CAPEX as we are not building new features for th=
e asset. I partially agreed with her argument and thought of doing some res=
earch on the internet but could not find any link. </div><div><br clea=
r=3D"none"></div><div>So I thought I would ask this group to see how other =
companies have categorized this work and does anyone think this should be a=
CAPEX? If so what would be their argument? </div><div><br clear=3D"no=
ne"></div><div>Thanks in advance</div><div>Ramesh</div></div>
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