Dropbox saved almost $75M over two years by moving out of AWS

Re:Dropbox saved almost $75M over two years by moving out of... by bonesss on Sunday February 25, 2018 @09:54AM (#16459200)

> Investors don't like to see big CAPEX numbers but seem fine with large OPEX ones.

If things go pear shaped large OPEX numbers resolve themselves as OP-erations get slimmed and shut down. Large CAPEX numbers, in the same situation, resolve themselves through liquidation and tears...

More importantly, OPEX comes from next years profits yielding a business I can loan against. CAPEX comes from last years profits, increasing the amount of loans I need to get it together.

It's the difference between thinking about short term profit margins and thinking about asset growth over time. Throwing a lot of optional cash today at a problem is better business than being forced to throw non-optional cash at a problem whenever the problem is feeling problematic. It's also quite freeing in terms of M&A.

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Re:Dropbox saved almost $75M over two years by moving out of... by sah2ed on Sunday February 25, 2018 @11:36AM (#16459684)

> More importantly, OPEX comes from next years profits yielding a business I can loan against. CAPEX comes from last years profits, increasing the amount of loans I need to get it together.

That's a very illuminating way to highlight the accounting fears mentioned in the gp.

[ Parent | on HN ]