Investment in long-term physical assets, such as servers, buildings, or equipment. It depreciates over time. Associated with the on-premises model, where the company buys and owns its infrastructure.
In AZ-900 and CLF-C02 this is the key difference between on-premises (high CapEx, low OpEx) and cloud (low CapEx, usage-based OpEx). Question: which model reduces upfront CapEx? Answer: public cloud with a pay-as-you-go model.
CapEx (Capital Expenditure) is a concept that can show up on the exam. Check the full guide to see it in context.