The inevitable, and largely welcomed, shift from on-premise to cloud-first, XaaS infrastructure across Australia’s public sector organisations, while offering manifold benefits from a technology
architecture perspective, appears in large part to be spurred by the appeal of budget-friendly, OpEx-based consumption models.
However, as speakers at a recent NetApp/FST Government co-hosted webinar acknowledged, the transition from longstanding CapEx (Capital Expenditure) spending cycles to a more flexible, and ultimately more cost-effective, OpEx-based (Operating Expenditure) framework is not without challenges.
For some, it has the potential to “lose certain flexibility in investment options”, while creating transitional headaches for budget teams, as the move to a new consumption model sees a sizable shift of capital onto ongoing operation costs.
Indeed, while government seeks to reduce excessive capital expenditure that can stymie long-term budget planning, questions remain as to whether “state and federal treasuries have caught up with the implications… of transitioning to OpEx”, noted Simon Geraghty, executive director government technology platforms at NSW Department of Customer Service.
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