15 minutes
Before we delve deep into Cloud Computing, we need to discuss what niche it fulfills.
Traditional computing, also known as on-premises computing, means you have physical servers and hardware at your workplace. You buy and maintain this equipment, and you need IT experts to set it up and keep it running.
We take all the risk, hence there was a requirement to externalize all of this. Cloud Service Providers, or CSP in short fill the gap between infrastructure and software requirement:
CAPEX == Capital Expenditure
CapEx is the spending of money on physical infrastructure upfront and then deducting that expense from your tax bill over time. CapEx is an upfront cost, which has a value that reduces over time and usually has no recurring cost.