Computing costs are predictable and relatively fixed in traditional IT environments. An organization purchases computing capacity upfront and uses it over time. The total cost of ownership is fairly easier to calculate with this setup.
By contrast, cloud computing operates on a pay-as-you-go basis, with no upfront payments. Resources and services are available on-demand, and IT spend fluctuates based on consumption.
The traditional approach prioritizes capital expenditure (CapEx), whereas cloud economics favors operating expenses (OpEx).
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