Page 65 - How to Sell Cloud Services for Resellers - Virtual
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Capex vs Opex :
Improving the Financial Model
Traditional On-Premise Model - Capex: Cloud Model - Opex:
3 3
2.5 2.5
2 2
1.5 1.5
1 1
0.5 0.5
0 0
-0.5 -0.5
-1 -1
-1.5 -1.5
-2 Year 0 Year 1 Year 2 Year 3 Total -2 Year 0 Year 1 Year 2 Year 3 Total
-1.2 -0.1 -0.1 -0.1 -1.5 -0.2 -0.2 -0.2 -0.3 -0.9
Cashflow Out 0 0.4 0.7 1.3 2.4 Cashflow Out 0 0.4 0.7 1.3 2.4
Cashflow In Cashflow In
• Supplier takes majority of revenue up front • Supplier takes risk, and works on
• Customer carries risk of investment
future revenue streams
• Customer gets benefits without
risking capital
