Page 56 - HSCR

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 -2
Year 0 Year 1 Year 2 Year 3 Total Year 0 Year 1 Year 2 Year 3 Total
Cashflow Out -1.2 -0.1 -0.1 -0.1 -1.5 Cashflow Out -0.2 -0.2 -0.2 -0.3 -0.9
Cashflow In 0 0.4 0.7 1.3 2.4 Cashflow In 0 0.4 0.7 1.3 2.4

• 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