IT operating expenditure (OpEx)
Run-rate technology spend charged to the P&L — subscriptions, cloud consumption, support, and managed services.
Updated 2026-05-23 · 3 min read
Definition
IT operating expenditure (OpEx) is technology spending treated as ongoing operating cost — recurring subscriptions, consumption-based cloud and AI fees, maintenance, and outsourced services — rather than capitalized upfront investment.
Why it matters
OpEx now dominates IT budgets as SaaS and cloud replace large capital purchases. It compounds monthly without a single procurement gate — which makes governance and renewal discipline critical.
Related Terms
IT capital expenditure (CapEx)
Up-front technology investments capitalized over time — datacenter builds, major license purchases, and transformation programs.
IT financial management
Governing total technology spend as a financial discipline — planning, allocation, optimization, and reporting across cloud, SaaS, AI, and vendors.
TCO (Total Cost of Ownership)
The full lifetime cost of a system — licenses, compute, storage, networking, people, migration, and exit — not just the cloud bill.