In these tough economic times the channel has moved away from a capex sale towards the apparent
attractiveness of selling more flexible pay-as-you-go opex alternative, but it might not be that
successful for resellers.
One of the benefits of capex funding is it's predictability and opex can cause potential problems
because of the future uncertainty about maintaining the commitment.
Alistair Edwards, principal analyst at Canalys, said that the risks with opex were that if the
business dipped and a commitment to find monthly payments had been made it could put the squeeze on
other parts of the business.
He warned that cuts could have to be found in the business if firms were struggling to keep to
their opex schedule of payments.
"The economy is hindering the shift to opex models. With capex the investment is predictable but
when you move to the opex model you need to make sure you can pay a monthly annuity fee," he
said.
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